Counteroffer Applications: Capturing Revenue and Building Strong Customer Relationships

Mar 7, 2024
Jillian Smith

The common thought in underwriting is that once someone is denied the credit card they applied for, that is the end of the story; the applicant and the credit card provider have no further relationship. But what if all that time spent building the relationship with the applicant – and the time they spent applying for a card – didn’t all have to be in vain? What if there were a way to capture that audience you invested time into marketing to, making those customers feel valued and unlocking the revenue from that customer you would have otherwise lost?

You can – with counteroffer applications!

So, what are counteroffer applications, and why is Highnote a powerful partner in this area? Read on to find out.

What are Counteroffer Applications?

When creating a credit program, it’s important to establish the underwriting policy that makes the most sense for your business. Maybe you have a card that targets CEOs and executives who love business travel. Or maybe your target is people looking to establish credit histories for the very first time. Depending on your business strategy, your underwriting policy will look different. Regardless, you will have one – because without at least SOME parameters around who qualifies for credit and who doesn’t – your business risks opening itself up to unsustainable risk.

But suppose your account holder’s criteria do not qualify them for the card product they applied for under your underwriting policy. In that case, you can offer them a counteroffer to an alternative product. For example, you may want to provide a counteroffer to a secured credit card instead of an unsecured one.

What are the Advantages of Implementing Counteroffers?

Adopting counteroffer strategies brings significant advantages:

- Capturing Revenue: Counteroffers allow businesses to retain potential revenue by providing alternative card products that fit the applicant's credit profile.

- Enhancing Customer Loyalty and Trust: By providing counteroffers, companies launching card programs demonstrate a commitment to finding solutions that work for their customers, even when the original product isn't a fit. This customer-centric approach can lead to longer-term relationships and positive word-of-mouth referrals.

What is so Powerful About Highnote’s Counteroffer Application Offering?

Unlike other card partners – which may only offer one or two card types – Highnote’s infrastructure supports multiple: consumer revolving credit, commercial charge, consumer charge, secured commercial charge, fleet, AP Automation, prepaid, debit, and more. With so many different offerings, it’s seamless to substitute one card offering for another when applicants are denied the initial card they applied for. Without us, companies launching credit programs would need to cobble together a solution of three or four different card providers to achieve the same ease of integration Highnote achieves in our counteroffer capabilities. When customers come to Highnote, they can launch quickly with the feature set they need to stay competitive.

Highnote and Counteroffer Applications: More Revenue, Happy Customers

Have you been frustrated by limited revenue from customer churn? Have you tried recapturing some of the revenue by adding a second or even third card partner and found managing the disparate solutions is more time-consuming than it is worth? Highnote is ready to work with you to find the ideal set of card types to fit your unique business strategy and audience profiles. Reach out to one of our experts today to see if counteroffer application capabilities are what you need to elevate your card program to the next level.

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