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CO-BRANDING STUDY - Credit Card Issuer, CEE Market

Assignment

Assist a client in entering the co-brand market to develop their small but highly profitable credit card business into a more significant product line, without exposing them to the costs and risks normally associated with open market recruitment.

Background

The clients had launched a credit card business and wished to expand in the wider market while maintaining a level of quality and usage amongst the existing customer base. They had a limited internal database to develop and were reluctant to compete ‘head to head’ with the more traditional volume issuers.

The client had a very knowledgeable and skilled card team, strong delivery and fulfilment functions, but lacked the practical knowledge of partner selection and recruitment and the specific requirements of pricing the product, maintaining the relationship and managing partners.

The Approach

Operating under strict NDA and confidentiality guidelines, fasEo worked with the client across many organisational functions to understand how their core competencies aligned to the requirements of co-branding and where changes were required.

In particular they focussed on:

• The special organisational structure required to manage a 3 party relationship between issuer, partner and customer.
• P&L development by partner and by segment.
• The value proposition to enable a fundamentally similar generic product to be tailored at minimum costs to different co-brand partners and their needs.
• The mechanism for pricing the product, revenue sharing with the partner and creating a relationship based product for the customer.
• fasEo introduced a partner selection matrix to evaluate the suitability of potential partners across a broad range of measures to ensure chosen relationships would display the characteristics of a marriage and then, based upon experience gained in the US and UK focussed attention of a few sectors that would closely align to the issuer’s core strengths, values and business.

Results

The client was able to quickly change aspects of their organisation, approach potential partners with an appropriate credit card offer to suit the specifics of the end customer.

They were able to quickly deliver new partners to the business and had the organisation in place to correctly manage the partnership.

fasEo offers a vast array of product and service solutions, especially tailored to the credit card industry. Our expertise is in people management and systems that optimise results for all the business stakeholders

To obtain a specific quote or view more sample materials contact orders@faseo.com.