CARDS & PAYMENTS | Cesar Tordesillas, Thailand

Krungthai Card targeting active spenders

Krungthai Card's focus on attracting active spenders resulted in an increase in credit-card spending and use of its personal-loan products.

The new strategy is working, as the level of active spending via credit cards and cash withdrawals via personal-loan products has definitely improved, according to Nutchanun Kengluecha, executive vice president for distribution business.

KTC sales staff had until recently concentrated attention on attracting new business.

But around half of new customers neither activate their newly issued credit cards nor withdraw cash in the form of a personal loan after being granted approval, said Kengluecha.

KTC has therefore had found it necessary to alter their strategy by focusing on finding active customers rather than simply getting customer numbers up.

Each salesperson still gets commission based on the number of approvals, but they now also receive a special incentive if a referred customer activates a newly issued card and/or withdraw money using a personal-loan facility, she said.

"All sales staff must know their customer portfolio well to acquire customers with good [spending] potential, and not attract risky ones."

The company has a strong sales network of more than 20,000 people, of whom 13,000 are direct sales staff of KTC, said the executive.

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