A new survey has found that Canadian consumers are increasingly switching credit card providers in an effort to get access to better rewards programs.
The study, conducted by market research firm J.D Power, found that nearly half of Canadians (48%) switched credit cards in the past year because of a better rewards plan that was being offered.
J.D. Power performed an online survey in May of more than 6,000 Canadian consumers who used major credit cards in the past three months. The results showed that 87% of credit card users were enrolled in a rewards program, and, on average, they spent about $600 a month on their primary credit card.
"There's more to a satisfying rewards program than just the amount of points, miles or cash card holders can earn," Jim Miller, Vice-President of Credit Card Practice at J.D. Power, said in a news release. "Understanding how to redeem rewards — and having redeemed rewards recently — has a significant effect on satisfaction and loyalty levels."
The top credit card in Canada when it came to overall customer satisfaction was President's Choice (PC) Financial, followed by American Express (NYSE: AXP), Canadian Tire (TSX: CTC.A), Capital One (NYSE: COF) and BMO Bank of Montreal (TSX: BMO). Credit cards for most of the big Canadian banks were lower down on the top 12 list with Scotiabank (TSX: BNS), National Bank of Canada (TSX: NA), CIBC (TSX: CM) and TD Canada Trust (TSX: TD) all in the bottom half of the consumer rankings.
