Ever had a bad customer experience and wondered if the company will actually fix the problem you had? I certainly have. I’ve hung up the phone and asked myself if that issue will ever get resolved or will the next customer have to deal with it as well. Are you wondering what happens when someone has a bad experience with Barclaycard? I want to give you an insight into our complaints tracking process. If you ever express dissatisfaction with us, we log that experience or “complaint” into a database. As you’ll soon see, that database is pretty detailed. Our goal is to use the information to improve our cardmember experience. How do we do that? By setting goals to lower the number of complaints we should receive each month.
Quite simply, in order to reduce complaints, we have to solve the problems that made cardmembers unhappy. We need to understand all the details of the complaints in order to avoid repeat situations when possible. Now, are we perfect? Far from it. But the culture here is to continue to strive to lower cardmember dissatisfaction with our products or services.
I wanted to bring this to the attention of the Barclaycard Ring cardmembers to open a dialogue about what is driving your complaints. With 2013 in the books, I thought it made sense to take stock of all the complaints we logged last year. Below I have ranked the complaint categories for Barclaycard Ring cardmembers. After the chart there is a brief summary of the categories.
Service – This category covers both the call center experiences as well as digital servicing channels (mobile app and web). Examples are log in issues, ease of website navigation or dissatisfaction with how a problem was resolve for a cardmember.
Transacting – These complaints reflect problems making a purchase (for example, declined transactions) or issues performing a balance transfer.
Terms – These complaints are around fees, APR, credit line or the value added service products we offer. Barclaycard Ring is an example of what we call a “product”.
Payments – Payment processing complaints tracked here.
Account Opening – these are complaints associated with the opening of a Barclaycard account. Examples include; confusing applications, misunderstanding of terms or fees, or issues with card delivery.
Collections – The most common complaint in this category revolves around issues with our payment programs.
Credit/Account Decisions – These are generally complaints received after we have reduced a cardmember’s credit line or closed their account due to inactivity.
Rewards – Includes redemption problems or getting clarity on how the program works.
Ok, there you have it. Barclaycard Ring’s top complaint categories are in servicing and transacting (purchases and balance transfers). Let’s dig into those first.
Starting with service, you see that what stands out by a long shot is website complaints.
My initial thought was that our higher online activity was driving the complaints. After all, the more you have to log in the more likely you’ll encounter a website error. And that appears to be the case. Over 60% of active Barclaycard Ring accounts have logged in to the servicing website or mobile app over the last 90 days. Barclaycard Ring cardmembers who do log in, do so 48% more than the average Barclaycard cardmember (very cool). That means that Barclaycard Ring cardmembers log in 74% more than the average cardmember. The complaint rate is 78% percent higher than what we typically see at Barclaycard business-wide. Which makes sense I guess, but it’s still disappointing that it happens at the same rate. My guess is the additional complaints happen as a result of issues with the community itself, as that is an entirely different website to manage and only accessible to Barclaycard Ring cardmembers. If you can provide any additional insight into website issues, we’d appreciate hearing them.
Next, let’s look at complaints related to Transacting. Here is the rank of complaints broken out in smaller categories.
It looks like the process of moving money over to Barclaycard Ring, through a check or Balance Transfer, is the main culprit. However, as we know, when a product has an attractive 8% variable APR, we will likely have more cardmembers attempting to transfer balances. The best data I could come up with is the following: 64% of Barclaycard Ring balances are a direct result of balance transfers. This compares to roughly 24% for the rest of our business. That’s 167% higher than normal which likely driving the higher volume of check and balance transfer processing complaints. Has anyone had an unsatisfactory experience in this area? I am sure there are many reasons but it’s always best to hear first-hand.
I hope this is interesting and helpful. Going forward I will be writing a regular blog that looks at the complaint volume for the Barclaycard Ring portfolio and we’ll discuss issues and look for both discouraging and encouraging trends.
On December 16, 2015 the Federal Reserve made a decision to increase the current Prime Rate by .25%. These changes will affect the current variable APR for Barclaycard Ring cardmembers and may also impact your minimum payment due. See our Prime Rate FAQs blog for additional information about these changes.