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This TowerGroup Research Note identifies strategies for retaining the most profitable credit card customers. Until 2009, card issuers relied on the account fees paid by customers with large revolving balances in a business model of short-term profit maximization. TowerGroup believes that 2010 will be a year of transition to a new credit card business model to respond to shifts in consumer behavior and comply with enacted legislation. The new model, which TowerGroup dubs "customer relationship value," will require a long-term view of customer profitability emphasizing creditworthiness and revenue derived by cross-selling complementary products and services billed
to the credit card account.