Jim Miller | Source | Vice President, Banking and Credit Card Practice at J.D. Power

Banks are experiencing record expenses related to the increasing rate of customers redeeming their rewards. To manage profitability, some issuers have eliminated or reduced card benefits. The key for issuers in this highly competitive environment is to make sure they are offering the types of benefits that resonate with current and potential customers. Most customers are aware of only a handful of benefits and use just nearly two of them, so there is room to simplify the benefits offered. It is better to have customers fully understand their benefits rather than provide benefits of which customers aren’t even aware.