Credit cards issued by retail chain stores have proven to be effective tools in terms of customer loyalty. This is because when it comes to shopping, people follow the tendency to prioritize those establishments that offer credit margins to these buyers. At least that’s what a survey by the Locomotiva research institute in partnership with the technology company Dock indicates.
These retail cards have a name and participate in a market scope that has been growing bravely in Brazil. It is a private label, a credit instrument, which works like a traditional credit card, with its own brand and which is accepted in the network of establishments of that brand
All technology and ecosystem involved behind these cards is materialized by a company specialized in this service. That’s what explains Édrei Costa, CEO of RPE, a Brazilian technology company that offers payment solutions to boost the retail market.
“The private label is a kind of credit issued by a specific company, usually a retail chain or store, which offers credit to its customers for exclusive use in its own stores or online shopping site. These cards usually offer exclusive benefits, such as discounts or special offers to encourage customers to shop at the company’s store or website,” he explains.
This business is a tool that benefits both the consumer and the establishment, generating financial results for the establishment and the realization of a consumer dream for the consumer. The study by Instituto Locomotiva warns that the strategy has had a very positive effect.
According to the information analyzed, 71% of people prefer establishments that offer private label cards. These consumers would use the card even more if they might. The survey points out that, among these active consumers, 52% would use the benefit more if there were better installment conditions, and 53% of them would use it even more if the limit were higher.
“These cards are both for the brand and for the customer, a welcoming strategy. In addition to delivering a differentiated and personalized treatment, the private label increases customer engagement and presence in the store and also increases the average ticket. Not to mention that for many families, the cards are even received as an income supplement”, emphasizes Édrei Costa, CEO of RPE.
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