Credit card activation: how to encourage cardholders to start using their card effectively

In today’s competitive market, a successful credit card program requires more than just compelling offers and attractive designs. It demands a strategic approach to credit card activation. Evaluating competitors’ strategies is a helpful way to determine what works, and what doesn’t, for customer engagement and activation. Early engagement is crucial, as influencing cardholder behavior from the start can shape the long-term success of your card program.

This article explores proven tactics for optimizing your credit card customer experience and driving meaningful cardholder engagement.

The importance of early card activation

The moment a customer is approved for your credit card presents a crucial opportunity to establish a positive relationship and make your card their preferred choice for daily use. Early activation plays a vital role in this process, as it helps set behavioral patterns. Once customers develop habits — such as consistently using a particular card — it becomes much more challenging to shift those behaviors.

This phenomenon, known as status quo bias or behavioral inertia, means that customers are more likely to stick with what they know and use regularly. Therefore, ensuring your card becomes their “go-to” option from the start is essential for long-term success.

Develop habits from day one

Early engagement is one of the strongest indicators of long-term success for your credit card program. When cardholders frequently engage with their card within the first 90 days, they can offer up to 3x greater long-term customer value*. Additionally, cardholders who activate their card within the first 30 days have a 30% higher spend** than those who activate later.

This demonstrates the power of establishing behavioral habits early. To foster these habits, a well-designed credit card customer experience is essential. At the heart of this is a comprehensive cardholder onboarding series, which introduces cardholders to the benefits of the card, encourages early activation, and reinforces frequent usage.

To foster these habits, designing an effective cardholder onboarding process is essential. This process should include several key concepts:

Guided onboarding communications
Ensure that your onboarding process starts the moment the card is approved. This should include a series of communications (emails, texts, etc.) introducing the cardholder to their new card, explaining how to activate it, and providing clear next steps to make their first purchase.

Incentivize early engagement
Reinforce reasons to activate and start using the card. Offer rewards for early usage, such as cashback bonuses, extra points, or a 0% APR for the first few months. These incentives encourage cardholders to use the card early and often, setting the foundation for long-term engagement.

Personalize the experience Tailor onboarding messages and offers based on customer profiles or segments. For example, frequent travelers could receive promotions tied to travel rewards, while online shoppers could receive points for e-commerce purchases. Personalized content enhances the credit card customer experience by making cardholders feel that the card is customized to meet their specific needs. Explore example customer profiles in our article on why personas matter.

Learn how to elevate your credit card marketing with personas

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It’s also important to make it as easy as possible for new cardholders to activate and start using their cards. Provide multiple activation options — such as via mobile app, online, or phone — and offer instant access to the card through digital wallets to eliminate any barriers to usage. Clear, concise instructions help minimize friction in the process, making it seamless for the customer.

After activation, maintaining engagement is key. Continue to reinforce the value of the card through personalized offers and rewards, such as bonus points or cashback on initial purchases. Regular communication, like email updates on reward balances and promotions, keeps your card top of mind for daily use. Encouraging frequent use through tiered loyalty programs or targeted promotions ensures cardholders continue to see the benefits of sticking with your card over time.

A strategic approach to credit card activation is key to the long-term success of your card program. By focusing on early engagement, simplifying the activation process, and continuously reinforcing the value of your card, you can drive increased usage and build lasting customer loyalty. Remember, the success of your credit card launch depends not just on getting the card into customers’ hands but on ensuring that it becomes their go-to card for daily purchases.

To learn more about how to create effective credit card marketing strategies, explore our resources on key card metrics for measuring success, creating a compelling card design, and why direct mail still matters for card marketing.

*“From Plastic to Pixels: Digitizing the Credit Card” McKinsey & Company, 2016

**“The First 30 Days of Card Issuance” TSYS, 2019