For any card program, the first 90 days are make-or-break. Onboarding and user engagement during this early window creates stickiness for the consumer, positioning the card for both top-of-wallet and top-of-app.
Here are some stats:
- The first 90 days is when the card is most likely activated.
- 43 percent of all cards go inactive and unused.
- Cardholders are 50 percent more loyal when onboarding is effective.
In card circles, there's even an acronym: EMOB, for early month on book, illustrating the importance of seamless onboarding and effective promotions in driving early use.
Let's break this down into the key stages, and what's required for each to ensure long-term engagement.
Offer
A differentiated and generous welcome offer will attract card prospects. Tapping into loyalty programs, members often seek additional rewards, points (or miles) acceleration, and tailored perks. The average American consumer holds three to four cards, with one typically being debit.
- Stand out with a compelling welcome offer or bonus — one that drives immediate use.
- Tie the offer to what your consumers value. This can mean automatic upgrades, discounts, or points multipliers.
- Define the qualifying criteria to earn the welcome offer. Typically, this means a specific amount of spending in a prescribed period of time, minimum funding amounts, or funding methods.
Activation
Fast action is the key. Compel the cardholder to use the card immediately. With a digital or virtual card, users can start funding and spending instantly. With debit, there's no credit check or wait time — just a simple KYC process to capture key details.
- Inform applicants upfront about identity verification and how long it takes.
- Ensure the app guides users throughout onboarding with progress bars and reminders on rewards along the way.
- Once activated, cardholders should be immediately rewarded for their efforts with the welcome bonus and next steps in accruing points or miles.
Engagement
Bring cardholders along with ongoing outreach via push notifications, SMS, and emails. These serve as continuous reminders of the program's value, encouraging more interactions.
- Reward subscription payments. These monthly or annual charges can boost points without requiring additional effort by the user. Set it and forget it while the cardholder earns points.
- Encourage direct deposit funding to boost held funds and cement user behaviors. When funds are held in the card account, they earn points for the cardholder, and interest for the company. When money is available to spend via the debit card, consumers will access it more frequently.
For EMOB, timing is everything
The faster you can encourage use for a new card, the stickier it becomes. Top-of-mind translates to top-of-wallet use. Post-acquisition, elevated offers for new cardholders drive a burst of use that can generate long-term activity. Continuous outreach and engagement are critical in those early weeks, as the initial excitement and welcome bonuses can quickly fade.
It's important to consider the specific touchpoints, offers, and engagement throughout the EMOB phase, with a dedicated go-to-market plan to accomplish both interim and long-term objectives.
