American Express (NYSE: AXP) and Discover (NYSE: DFS) were named as the two best credit card companies based on overall consumer satisfaction, according to J.D. Power and Associates 2009 Credit Card Satisfaction Study.
The study ranks consumer satisfaction of credit card usage on six factors including customer interaction, interest rates and fees, payment processes, benefits and services and problem resolution. The study uses a 1,000 point scale and found that consumers are overall much less satisfied with their credit cards in 2009 than they were in 2008 and 2007. The overall satisfaction score for 2009 was a score of 703.
The reason for growing consumer dissatisfaction primarily stemmed from increased interest rates and fees that banks have been charging customers. 20% of the study’s respondents said they had their interest rate increased in 2009, versus 10% that responded to the 2008 study.
The study found that being good about communicating with cardholders was one of the things that all of the high-performing credit card issuers had in common. The top companies made sure customers know that they were valued. For example, 82% of American Express customers were aware of the benefits and services associated with their card, compared to an industry average of 70%.
American Express customers also reported having access to approximately 5 perks and services from their card, compared to an industry average of between 2 and 3. American Express’s ability to make consumers aware was an important contributor to the company’s overall satisfaction score. American Express received a 757 satisfaction index on their rewards and benefits compared to an industry average of 690.
Discover received high marks for emphasizing the importance of customer interaction. Discover has done a particularly good job of interacting with its customers through its website, automated phone services and through customer service representatives. Discover won marks for making its website very accessible and for minimizing the amount of time it takes in a customer service queue before being able to talk to a customer service agent on the phone. The report stated that the average wait time to talk to a customer service agent was just 3 minutes and 18 seconds.
