ABSTRACT
The dynamic nature of the payment card business makes the management of ongoing customer relationships the most challenging aspect of the business. There are two critical components issuers must focus upon in order to retain their best cardholder relationships. The first is the development, maintenance, and use of a customer database which integrates information from the credit, risk, marketing, back-office and collections areas and the second is the more traditional customer service function within the bankcard issuing organization. The third critical element for the customer database is the analytical software tools provided for the analysts to utilize in their probing of the data. The customer database is at the core of effective customer management. Customer service is a critical link in the bankcard product delivery chain. Customer service strategy starts with an overall objective which the financial institution is trying to achieve such as mandating all customer service issues be resolved with only one call or letter from the cardholder.
