Exploring Retail Strategy: A Deep Dive into the Launch of Exclusive and Joint Credit Cards
In a bid to enhance its credit card offerings, a leading national fashion retailer sought to switch bank partners and introduce a co-branded card. Clarkston Consulting, a renowned provider of Project and Program Management and Specialty Retail services, was engaged to manage the technical aspects of this transition.
The successful implementation of a co-branded credit card program in specialty retail requires a well-coordinated approach. This approach centres on program management, executive oversight, and effective vendor collaboration.
**Program Management**
Clarkston established a clear operational model that defined processes for issuing banks, co-brand partners, and fintech collaborators. Standardized program operations and accounting practices were implemented to maintain efficiency and streamline workflows. Compliance and security were ensured by leveraging a compliance-ready platform.
A developer-friendly credit card platform was utilised, supporting innovation and customisation for both the retailer and issuing bank. Secure and robust integration of customer data between retail and banking systems was essential for personalised offers and rewards management.
**Executive Steering Committees**
An IT or program steering committee was created, including executives from both the retail and banking partners. This committee oversaw strategy, prioritised initiatives, and resolved cross-functional issues. Mentorship and leadership development programs were incorporated for IT teams to ensure smooth execution and long-term success.
**Vendor Collaboration**
Fintech and technology partners were chosen whose goals aligned with the co-branding objectives and customer needs. Vendors were assessed based on their ability to provide regulatory-compliant platforms, robust integration capabilities, and pre-certified solutions for faster go-to-market. Strong support for API integrations and developer tools was ensured to facilitate seamless data exchange and feature deployment.
Transparent and frequent communication between all stakeholders—retail, bank, and technology vendors—was fostered. Processes such as onboarding, underwriting, customer service, and dispute resolution were streamlined.
**Implementation Checklist**
Key actions included defining the operational model, standardizing processes, ensuring regulatory compliance, forming the steering committee, assigning roles, regular reviews, aligning objectives, evaluating vendors, integrating systems, collaborating closely, and balancing diverse stakeholder interests.
The co-branded credit card project was completed on schedule, with Clarkston facilitating vendor collaboration during the implementation phase. Clarkston led executive steering committees during the project and managed development and QA timelines for the back-end systems of the new bank and card.
Clarkston provided on-site support during the launch and hypercare phases of the co-branded credit card program. The retailer's goal for the co-branded card was to improve customer support and extend the card's usability beyond its stores.
The retailer conducted a Request for Proposal (RFP) and selected a new vendor for the bank transition and co-branded credit card implementation. Customers can now apply for and use their new cards in-store and online.
For more details about Clarkston's Project and Program Management and Specialty Retail services, the case study of the co-branded credit card project can be downloaded. To learn more about Clarkston's services related to the co-branded credit card project, contact Clarkston directly.
- To ensure the success of the co-branded credit card program, a well-coordinated strategy focused on program management, executive oversight, and effective vendor collaboration was implemented.
- The operational model was defined by Clarkston Consulting, which included standardized program operations, accounting practices, and a compliant platform for security and efficiency. Vendors were chosen based on their alignment with co-branding objectives, regulatory compliance, and integration capabilities.
- Transparent communication among stakeholders (retail, bank, technology vendors) was essential for the smooth execution of processes such as onboarding, underwriting, customer service, and dispute resolution during the co-branded credit card project implementation.
