Cambridge, MA (September 8, 2011) – Customers of “daily deal” web sites are a solid target population for co-branded credit cards, according to a new research brief from the Financial Services Group at Lightspeed Research.
“The Opportunity for Daily Deal Credit Cards” reveals that more than one quarter (27%) of Living Social customers would be interested in a Living Social-branded credit card, while more than one third (34%) of Groupon customers would be interested in a Groupon-branded card. Further, the research determined that daily deal customers’ creditworthiness and overall spending behaviors make them an attractive target from a credit product standpoint. Relative to the overall U.S. credit cardholder population, Groupon and Living Social customers:
- Are about 50% more likely to have household incomes above $75,000
- Have higher credit scores
- Make three times as many credit card purchases
- Are about twice as likely to pay their monthly credit card balances in full
“There are no good proxies for a daily deal co-branded card, as there are with travel or traditional retail card products,” says Greg Flemming, Senior Vice President of the Financial Services Group. “This unique analysis sheds light on important credit and spending attributes of prospective cardholders, and can inform product structuring, competitive positioning, and the overall viability of such a co-branded card.”
The study also revealed notable tendencies towards specific issuers and network branded products among daily deal customers. In particular, there is a considerably higher incidence of American Express and Discover cards in daily deal customers’ wallets.
The Financial Services Group at Lightspeed Research is making “The Opportunity for Daily Deal Credit Cards” available to interested parties on a complimentary basis. To obtain a copy of the brief, please contact Scott Kaplan at (617) 431-5362 or email@example.com.
About This Study
This research is based on two data sources:
- A nationwide survey of more than 1,500 U.S. consumers fielded between August 4th and 9th, 2011, with questions focusing on awareness and usage of daily deal web sites, daily deal site preferences, daily deal retail category purchase preferences, and level of interest in acquiring a credit card with a site-specific rewards program and additional deal-related purchase opportunities, were it to be offered by Groupon or Living Social.
- The Financial Services Group’s Behavioral Tracking Panel, through which statement-level data are passively gathered from the panelists’ credit card and debit card accounts on an ongoing basis with the panelists’ full consent.
About Lightspeed Research Financial Services Group
The Financial Services Group at Lightspeed Research is focused on helping retail financial services companies and other industry stakeholders make informed business decisions through custom survey research and tracking studies, competitive intelligence reports, and partnership strategy development. By gathering actual statement-level data through its proprietary Behavioral Tracking Panel, the Financial Services Group provides a “full wallet” view of U.S. consumer spending.
Kantar is one of the world’s largest insight, information and consultancy groups. By uniting the diverse talents of its 13 specialist companies, the group aims to become the pre-eminent provider of compelling and inspirational insights for the global business community. Kantar works across 100 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group’s services are employed by over half of the Fortune Top 500 companies.
For further information, please visit us at www.kantar.com
SVP, Business Development
Lightspeed Research, Inc.
Phone: +1 (617) 431-5359