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ANWB – Optimization credit card portfolio

With over 4,3 million members, the ANWB (Dutch traveler’s association) is the largest association in the Netherlands and, besides the largest banks, one of the largest providers of credit cards. ANWB offers two different credit cards and was contemplating whether this was the optimal offering.


ANWB’s question: what is the optimal composition of the credit card assortment?
Over five million people in the Netherlands posses a credit card. ANWB is the largest association in the Netherlands, with over 4,3 million members, and besides the largest banks one of the largest providers of credit cards. ANWB offered two different types of credit cards (figure 1) and was contemplating whether this was the optimal offering:

  • Do the current credit cards contain the features that are most important to customers?
  • What are customers willing to pay for new features / services?
  • What is the market potential for a third credit card in the assortment?
  • Which features should a possible third credit card contain and what should be the price?
  • How many customers will choose the new card? Is it true that most customers will choose the middle option of these three?
  • To what extent does changing the assortment contribute to the financial result?

ANWB and International Card Service (ICS) approached flowresulting to answer these questions.


Willigness to pay research as a basis for assortment-simulator

In-depth interviews led to a deeper understanding of customer motives when choosing and using credit cards, and in credit card features which are deemed to fit with ANWB. Hereafter, using quantitative research, trade-offs between different product features have been identified.

The research offers fact-based insights in the price-value relationship (how much value does the market perceive from propositions of ANWB, ING, Rabobank, etc.) and the willingness to pay (how much are customers and prospects willing to pay for specific benefits, such as purchase insurance?). See figure 1.

Figure 1: example of the willingness to pay for different product benefits and the variation per target group (hypothetical)

The research also reveals the price elasticity (what is the impact of a change in price on sales volume?) and price- and value perception (do card owners actually know what they pay on annual basis for their card, and what do they get in return?). See figure 2.

Figure 2: example of price perception insights (hypothetical)


Advice: assortment expansion and targeted marketing communication

The most important conclusion: market potential exists for a third credit card, which can positioned between the two existing credit cards with respect to price, given that specific benefits are added to this new card. Besides the fact that this expansion of the assortment adds value since the propositions are more closely aligned with customer needs, the expansion also has a positive impact on the financial result of ANWB.

Based on the research, flowresulting recommended a number of actions to improve the marketing communication, since many card owners did not know what their credit card offers.

The market simulator, which flowresulting developed, allows ANWB and ICS marketeers to see the impact of an infinite number of scenarios on market share, turnover and profitability. This ensures that even after completion of the project, the team has a powerful instrument that aids in decisions regarding product composition and pricing. See figure 3.

Figure 3: market simulator credit cards, developed by flowresulting