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Chase Manhattan scored big in the J.D. Power and Associates '1998
Comprehensive Cardholder Satisfaction Study'. The Chase 'Wal-Mart MasterCard'
topped the gold/basic card category and the Chase 'Platinum' card aced the
platinum category. The Chase 'Toys R' Us card (initially issued by Bank of New
York) also ranked "above average" among reward cards, betting out its sister
card, the Chase 'Shell MasterCard'. Two of the industry's most aggressive
issuers, First USA and Capital One, ranked "below average" in the gold/basic
and platinum categories. Power said it interviewed more than 12,000
cardholders seeking data on six key measures including: customer service; card servicing
and reputation; price; rewards; credit and payment policy.
Overall Cardholder Satisfaction: Index Scores Standard/Gold Platinum Chase Wal-Mart 104 NA Optima Card 103 NA Citibank 102 105 MBNA America 102 102 First Union 102 NA AT&T Universal 102 102 First Card 100 101 U.S. Bank 99 102 Chase 98 106 Industry Average 98 100 Source: J.D. Powers and Associates
With credit cardholders carrying an average of four general-purpose credit cards in their wallets, the cards with the highest customer satisfaction ranking are revealed in the J.D. Power and Associates 1998 Comprehensive Cardholder Satisfaction Study. Chase Wal-Mart has the highest overall satisfaction among Gold/Basic cardholders; Novus' Discover and Private Issue cards, with their cash-back features, tied among Reward cardholders; and Chase Platinum ranked highest in satisfaction among Platinum cardholders.
"In a year where spending on credit cards has risen by 16 percent, cardholder servicing has and will continue to significantly impact cardholder behavior," said Andrew March, director of financial services at J.D. Power and Associates. "Those issuers that excel in the cardholder servicing area will accrue greater results."
Overall customer satisfaction in each of the three credit card categories are impacted similarly by six key measures. With customer service by far the most important, the six measures include:
* Customer Service: The importance of knowledgeable, courteous and professional customer service representatives;
* Card Servicing and Reputation: Accurate billing statements and clear and timely communication of policy changes;
* Price: Fair annual interest rate/APR;
* Rewards: Bonus points and rebates;
* Credit: Providing a credit limit that meets customer needs; and
* Payment Policy: Grace period.
In addition to strength in Customer Service, the top-ranked credit card issuers also demonstrated high levels of customer satisfaction in other areas. Novus' Discover and Private Issue cards are strong in Price, whereas Chase Wal-Mart and Chase Platinum are strong in Card Servicing/Reputation as well as Price.
"Loyalty, frequency of use and total credit card spending are all enhanced when issuers achieve higher levels of customer satisfaction," said March. "That's what drives the consumer decision-making process."
The Comprehensive Cardholder Satisfaction Study analyzes and ranks customer satisfaction performance of 23 credit card issuers that offer 54 individual credit cards. A total of 12,082 consumer credit cardholders were surveyed in this independently funded J.D. Power and Associates study.
J.D. Power and Associates is an international firm best known for its marketing information services in key business sectors including market research, forecasting and customer satisfaction. The firm's quality and satisfaction measurements are based on actual customer responses from more than one million consumers annually. Headquartered in Agoura Hills, Calif., the firm also has U.S. offices in Torrance, Calif., Michigan and Connecticut. International locations include Japan, Korea, the United Kingdom, Canada and Brazil.
J.D. Power and Associates can be accessed through the World Wide Web at http://www.jdpower.com. Media e-mail contact: john.pepitone@jdpower.com.
J.D. Power and Associates 1998 Comprehensive Cardholder Satisfaction Study Overall Customer Satisfaction: Index Scores - Gold/Basic Cards Chase Wal-Mart 104 Optima Card 103 Citibank 102 MBNA America 102 First Union 102 AT&T Universal 102 First Card 100 U.S. Bank 99 Chase 98 Industry Average 98Finishing below industry average in alphabetical order are: Advanta, BankAmericard, Capital One, First USA, Fleet Bank, Household Bank, NationsBank, Providian Bancorp, The Associates, Wachovia Bank and Wells Fargo.
Source: J.D. Power and Associates 1998 Comprehensive Cardholder Satisfaction Study.
J.D. Power and Associates 1998 Comprehensive Cardholder Satisfaction Study Overall Customer Satisfaction: Index Scores - Reward Cards Discover 106 Private Issue Card 106 Chase Toys R' Us 105 Industry Average 104Finishing below industry average in alphabetical order are: Associates Amoco, Banc One BP Oil, Chase Shell, Citibank AAdvantage, Delta Skymiles, GE Rewards, GM Card, Mileage Plus First Card and NationsBank Dividend Miles Visa.
Source: J.D. Power and Associates 1998 Comprehensive Cardholder Satisfaction Study.
J.D. Power and Associates 1998 Comprehensive Cardholder Satisfaction Study Overall Customer Satisfaction: Index Scores - Platinum Cards Chase 106 Citibank 105 MBNA America 102 U.S. Bank 102 AT&T Universal 102 First Card 101 Industry Average 100Finishing below industry average in alphabetical order are: Advanta, Capital One, First USA and Providian Bancorp.
