Canadian customers with better knowledge of the benefits offered by their credit card issuer have higher satisfaction levels.
The findings are from the latest J.D. Power 2019 Canada Credit Card Satisfaction Study, which polled 6,617 people who used a major credit card in the last three months.
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According to the study, customers who fully understand the benefits have a satisfaction level of 840 on a 1,000-point scale. The figure drops to 736 for customers who are not completely aware of the rewards they are entitled to with their credit card.
Additionally, 66% of the customers with higher understanding are likely to recommend their card to others. Meanwhile, only 38% of the other group is likely to do the same.
The survey also noted that 38% of the respondents in the fully knowledgeable group are likely to switch their current card issuer for better benefits, compared to 46% on the other side.
Benefits on hotels have the highest impact on customer satisfaction, the survey noted. It is followed by shopping and other travel-related benefits.
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By GlobalDataNotably, the study revealed that limited communication from the card issuer improves customer satisfaction.
Besides, cash rewards were found to be the most popular among customers, followed by airline tickets.
The use of digital channels was also found to be on the rise among all age groups.
Separately, the study highlighted that non-traditional credit card issuers are preferred by Canadians. They outperform the conventional issuers by offering more attractive services to the customers.
J.D. Power director of wealth and lending intelligence John Cabell said: “Non-traditional credit card issuers are making significant headway, differentiating themselves with rewards and benefits that better resonate with consumers.”
Overall, Tangerine ranked the highest in customer satisfaction among all credit card issuers in Canada. It was followed by American Express and Canadian Tire.
