- I.D. Self-Scan can pre-populate as much as 70 percent of the application, reducing approximately 40 keystrokes from application process
- Initial results from national specialty retailer indicate Frictionless Mobile Credit reduces application abandonment rate by 83 percent
COLUMBUS, Ohio, November 3, 2016 -- Alliance Data Systems Corporation's card services business, a premier provider of private label, co-brand and business credit programs, today announced its new, proprietary credit card acquisition tools for retailers, designed to add convenience, save time and reduce abandoned credit applications. I.D. Self-Scan and the first-of-its-kind Frictionless Mobile Credit provide shoppers with the ability to apply for a store-branded credit card in a matter of seconds. Early data indicates that Frictionless Mobile Credit reduces application time by more than 25 percent.
Alliance Data’s I.D. Self-Scan tool allows consumers to apply for a credit card simply by taking a photo of their driver’s license or state-issued I.D. The credit application is pre-populated with data from the I.D., which may amount to as much as 70 percent of the application, kicking off the credit review and approval process. The capability can be utilized either by the consumer on their own mobile device or by associates using in-store tablets.
The first-of-its-kind Frictionless Mobile Credit (patent pending) requires a simple text and a few keystrokes and consumers are on their way to applying for credit. Through Alliance Data’s proprietary process, a credit application is automatically populated using information from vast data resources.
These consumer-initiated technologies both allow shoppers to “apply and buy,” to take advantage of first-purchase discounts and incentives. In a pilot program, accounts generated by I.D. Self-Scan are showing a 40 percent higher first transaction size than accounts generated at POS.
“Our research shows a double-digit abandonment rate during the traditional mobile credit application process, and we have already seen an 83percent reduction in that number as we begin to implement these and other mobile and digital application tools that streamline the process and save time for consumers,” said Sheryl McKenzie, vice president of marketing, product and capabilities for Alliance Data. “We’re focused on providing innovative solutions, such as these new acquisition tools, that put the customer experience first and reduce friction in both the card application and purchasing process.”
Alliance Data is currently implementing these new acquisition tools in partnership with several national specialty retailers and plans to roll them out more broadly in the coming months.
Shoppers: Quick and Convenient Wins the Day
I.D. Self-Scan and Frictionless Mobile Credit each significantly reduce keystrokes required to complete an application by approximately 40 keystrokes. Alliance Data proprietary research indicates that “abandoners” – those who had started to fill out an application for a store-branded credit card but didn’t complete it – were often dissatisfied with the application process, and of those who indicated dissatisfaction, 52 percent indicated that the application process took too long. For abandoners who started to apply via mobile, the ease of the application process was rated as more important than for those who started the application process via a different method.
McKenzie believes these results validate that mobile credit applications will become even more common, and quicker, easier acquisition tools will be essential in helping retailers successfully welcome new customers to their brand and build profitable long-term customer relationships. She added, “No one likes lines, paperwork or multi-step processes. It’s about convenience and immediacy for shoppers, and Alliance Data’s incubation and capability teams are focused on delivering strategies to our retail partners that make sense for how people like to shop while motivating the desired behavior and increasing purchase frequency, transaction size and brand advocacy.”
About Alliance Data’s card services business
Alliance Data’s card services business is a leading provider of tailored marketing and loyalty solutions, delivered through branded credit programs that drive more profitable relationships between our brand partners and their cardmembers. We offer private label, co-brand, and business products to many of the world's most recognizable brands across a multitude of channels.
We uphold our Know more. Sell more.® promise by leveraging unmatched customer insights, advanced analytics, and broad-reaching innovative capabilities. It's how we deliver increased sales to our partners, build enduring loyalty to their brands, and provide more value to our cardmembers. Alliance Data’s card services business is a proud part of the Alliance Data enterprise. To learn more, visit www.knowmoresellmore.com or follow us on Twitter @Know_SellMore.
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Annette Rogers – Media
Brock Schmaltz – Media