Optimising the Pricing Strategy: Credit Cards

When a product has a number of different attributes, it is important to understand the importance that the consumer puts on each one and how this informs their decision making when deciding on which brand to buy. We worked with a credit card provider to optimise their product proposition and delivered a 30% improvement in cost per sale.

Credit card marketers often find themselves struggling to select the most attractive proposition for new customers, as each card carries a broad range of attributes. Understanding which attributes are important to consumers are important as it impacts on the messaging and offer positioning.

Business Science used Conjoint analysis (a research based tool) for this credit card provider to determine how customers judged each attribute of their product offering, thereby allowing marketing to promote the optimal proposition.

Over 1000 consumers were asked which offer would they would pick, out of 2 options, given all the attributes listed. This was asked to each respondent 20 times giving a large robust sample of which to understand the strength of each attribute. 


The APR was identified as being the most important attribute in the decision making process, followed by the number of balance transfer months and level of fee. 

The credit card was launched focusing on the APR as its USP. By building this into the econometric study, we identified that this made the media more efficient, delivering a 30% improvement on cost per sale.