New Product Bundles Allow for Differentiated Acquisition and Retention Strategies
Richmond, Va. - April 16, 2009 - Affinion Loyalty Group (ALG) will unveil a line of embedded credit card products, referred to as enhancements, at the 21st Annual Card Forum & Expo, April 20-22, in Marco Island, Fla. at the Marriott Resort Golf Club & Spa.
ALG`s line of enhancements will help financial institutions respond to increased government regulation that could adversely impact credit card profitability. In December, the Federal Reserve Board modified its rules to make credit card pricing less flexible. Additionally, Congress is considering legislation that would further restrict credit card issuers` pricing and marketing activities, such as the Credit Cardholders` Bill of Rights Act of 2009.
"In light of changing regulations and pending legislation, we saw a need in the marketplace for a line of products that would enable our clients to engage their customers in response to new restrictions on marketing and pricing," said Marti Beller, President, ALG. "We also developed a pay-for-performance pricing model that aligns costs with profitable consumer behavior eliminating the traditional concern around enhancements being a high-expense product."
ALG`s enhancement products are designed to cost-effectively meet the needs of many consumer segments, ranging from affluent to small business owners. The enhancements range from insurance-based products to identity theft protection, and can be marketed to drive acquisition or specific purchase behavior. These products can be delivered through ALG`s innovative, proprietary Web site that enables self-selection and self-service by individual cardholders.
Through an independent study of cardholders using ALG`s proprietary Web site, 92 percent said they are more likely to use their credit card when they know more about the enhancements included. This site also provides issuers a channel to drive additional revenue through up-sell opportunities.
"Enhancements are true to who we are as a company; they`re what we founded our company on nearly 30 years ago," continued Beller. "We`re excited about our initiative to reinvigorate our enhancement offerings, and are confident these unique offerings will help our clients further engage customers while increasing overall profitability."
About Affinion Loyalty Group: Affinion Loyalty Group (ALG) is a leading loyalty provider whose products and services touch one in every three Americans. With nearly 30 years of experience, the company drives incremental revenue by increasing customer loyalty for its clients who include top financial institutions, hotel and airline companies, and automotive manufacturers. Headquartered in Richmond, Va., ALG is the loyalty division of Affinion Group, the global leader in customer engagement. For more information, visit www.affinion.com/loyalty or call 800.622.4863.
About Affinion Group
As a global leader with almost 40 years of experience, Affinion Group enhances the value of its partners' customer relationships by developing and marketing loyalty solutions. Leveraging its expertise in customer engagement, product development and targeted marketing, Affinion provides programs in subscription-based lifestyle services, personal protection, insurance and other areas to help generate increased customer loyalty and significant incremental revenue for more than 5,570 marketing partners worldwide, including many of the largest and most respected companies in financial services, retail, travel, and Internet commerce. Based in Stamford, Conn., the Company has approximately 4,500 employees and has marketing capabilities in 18 countries globally. Affinion holds the prestigious ISO 27001 certification for the highest information security practices, is PCI Level 1 compliant and Cybertrust certified. For more information, visit www.affinion.com .Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995
This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion's expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2011, the consummation of the acquisition of Prospectiv and the impact to Affinion's business and the other non-historical statements in the discussion and analysis. These statements can be identified by the use of words such as "believes," "anticipates," "expects," "intends," "plans," "continues," "estimates," "predicts," "projects," "forecasts," and similar expressions. All forward-looking statements are based on management's current expectations and beliefs only as of the date of this press release and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those discussed in, or implied by, the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, industry trends, foreign currency exchange rates, the effects of a decline in travel on the Company's travel fulfillment business, termination or expiration of one or more agreements with its marketing partners or a reduction of the marketing of its services by one or more of its marketing partners, the Company's substantial leverage, restrictions contained in its debt agreements, its inability to compete effectively, and other risks identified and discussed from time to time in Affinion's reports filed with the SEC, including Affinion's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Readers are strongly encouraged to review carefully the full cautionary statements described in these reports. Except as required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements to reflect events or circumstances after the date of this press release, or to reflect the occurrence of unanticipated events or circumstances.