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How much is a loyal smartcard holder worth ?
PKI is on the way
The card top of the wallet
What is the real impact of smart cards on the CRM ? Another poll gives the answer :
It shows that churn rate(2) reaches 17% when customers hold 2 banking products, versus a mere 7% for those who hold 6.
It is then self-evident that customer loyalty directly depends on the ability of the bank to deliver more services to cardholders. What's required to achieve this, is to deliver the right services to the cardholder to ensure your card is on the top of wallet, the one they will never leave at home without. To achieve this you need a flexible infrastructure that allows you to :
Build new partnerships, without technical constraints, with loyalty operators, airline companies, retailers, sport clubs, ...
Effectively deliver new services onto your card instantly, on-line. This is essential as consumers are getting used to Internet time, that is instant delivery, and won't wait for a week, or even a day.
Enable each cardholder to tailor what's resident on their own card ( self provisioning )
Exploit your card base
to better know your customers :
Financial industry standards such as VOP and Multos define the security rules to let you concentrate on the marketing services you want to offer in total confidence.
The nice thing about these cards is that they match the need of a given individual as it can evolve over time :
You do not have to work out the customer segmentation before issuing the card. You can make it after issuance. This makes for a true scaleable one2one marketing tool.
But to make this happen, you need the back-end part that will control and actually perform these operations :
The CMS ( Card Management
Card issuer who needs to control the card, set rules, and get information on card usage.
Personalisation ( service bureau ) that loads the first set of keys to "administer" the card and uploads also the first services ( applets ).
Service providers who need to first get card issuer authorisation and then a channel to download their service into the card.
to deliver user or applet certificates
Understanding this challenge, Gemplus, the world leader smart card solution provider, has developed a global offering for financial institutions. The solution spans from the card to the CMS, and includes consulting and system integration capability. Want to figure out the ROI of such a system for your organisation ? Do you remember the market cap of dotcom companies based on the number of highly volatile Internet users they have registered? I'm talking about the type of Internet users who just use a portal because they do not know how to change their homepage in their browser ( a 2-click operation ... ). They are valued at approx. $10,000 for 1 user ! Now imagine the real value of a loyal smartcard holder, who has a card that they can easily tailor to their life style, a card that evolves as they change airlines, sport clubs, loyalty programs, ... The card content would change often, so that the card remains the same, YOURS.
(1): see www.identrus.com
(2):churn rate : yearly percentage of customers that resign to take a similar product from competition.
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