Retail Private-Label Consumer Card
Changing consumer spending behaviors and new regulations are persuading retailers and card issuers to reconsider the value of private-label credit cards. Recently thought of as a thing of the past, private-label cards are now proving to be higher performing than the general-purpose co-brand cards that took their place.
Pilot and Tailor for Optimized Results
Consumers still want to use credit for purchases, however, issuers have tightened their underwriting standards making it more difficult for consumers to qualify for new accounts. Store cards are attractive to merchants looking to provide valuable customers a credit product for in-store purchases. Because store cards have lower limits, higher interest rates, and produce greater sales, retailers are willing to take on the low levels of risk to increase overall revenue.
To optimize credit limits, interest rates, and consumer risk levels, Zoot’s instant decisioning solution for private-label retail cards enables issuers to pilot different strategies. Samples of your customer base can be leveraged to try new ideas to discover what is feasible for each customer segment and market. Merchants can then tailor product offerings to ensure you are making profitable offers that are appealing to your customers. Our clients will tell you this capability significantly extends the value of our private-label solution beyond being able to offer customers private-label cards instantly at the point of sale. More complex capabilities such as: instant prescreening and rewards decisioning can be added to your private-label card decisioning solution in the future as your sophistication continues.
Instant Decisioning at Multiple Points of Sale
Retailers can make realtime, consistent private-label card offers across sales channels by automating the decisioning process and integrating consumer channels including retail store registers, store kiosks, call centers, or online. An instant result supports consumers’ expectations of realtime responses through any channel and increases the probability of acceptance. Offers made, accepted,and declined can be stored in our offers repository for use later in re-presenting the offer through a different channel or analysis.
Flexibility and Control = Added Value
Zoot’s instant decisioning software solution is delivered through an ASP model that allows FIs and Retailers to gain the best of both worlds: business user control and flexibility along with premier uptime, total encryption, and “pay as you go” transactional pricing.
Learn More:
White Paper, "How to Choose the Right Credit Decisioning or Loan Origination Vendor"
White Paper, "Operational Excellence: The Prescreen Revolution”
White Paper, "Growth in a Saturated Market: The Evolution of Prescreen"
