Karum People

Karum: About offering a Private Label Credit Card Program

Why offer a Private Label Credit Card Program?

A private label credit (PLC) program can stimulate revenue, boost customer loyalty and increase gross margin ROI. The table below illustrates some of the commercial benefits retailers can achieve with the launch of its private label credit program.

Commercial Benefits Description How does PLC achieve it

Increased customer ticket

A wider variety of your products will be available for purchase by your customers

PLC customers are spending 200-300% more than cash customers

Increased customer pool

Ability to tap into larger segments of customers with new purchasing power

PLC enables customers with little or no other means of payment to shop in your stores

Increased customer intimacy

Establishing solid, lasting customer relationships that are firmly associated with your brand. 

PLC harvests unique data from your customer base which enables you to market your products and services.

Increased sales against bank cards

PLC customer are given the freedom to purchase without using available credit (open-to-buy) on their bank cards

PLC customers spend 100% more than bank cards

Increased customer loyalty

PLC allows you to deliver the right promotion to the right person at the right time and establishes long-term brand relationship with your customers

PLC provides many diverse opportunities to converse with customers through promotions, account maintenance and even collections.



Financial Benefits   How does PLC achieve it

Generate significant profits


By offering a private label credit card with carefully structured interest rates and fees, PLC portfolios generate yields as high as 50% annualized, while offering competitive and fair programs to your customers.

Competitive advantage


By ensuring that your company is generating profits from its PLC portfolio, you will be in a superior strategic position to match and exceed your competitor’s product offerings as they compete fiercely for customers.

Complete control over your business

Customers funding their PLC portfolio no longer wait for bank approval on promotions, or pay high discount rates for those promotions.  With PLC, you are free to balance your financial and commercial propositions as you see fit, and to roll out promotions in hours, not weeks.

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