It's a move that is understandable from a financial standpoint but questionable from a customer satisfaction one: As we reported Tuesday, Target is discontinuing its branded Visa card in favor of a bespoke credit card, one that is only usable at Target and Target.com.
The press release that heralded the news avoided any mention of the customer's view of this, instead focusing solely upon the expected financial benefit for the company. Target Financial Services president Terry Scully hinted at "the tremendous value enjoyed by Target Credit Card guests," without getting specific about how that value compares to the now-defunct Target Visa. Surely, it is less.
With consumers more aware of their spending habits and techniques than ever, taking away features doesn't seem like an especially smart move. What do you think — will increased sales be worth the possible user attrition?
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