HSN looks to Alliance for credit card, loyalty programs

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HSN has tapped Alliance data to launch a co-brand credit card program, and also to take on the retailer's existing private label card portfolio.

Alliance will help HSN develop loyalty programs for cardholders and provide data analytics so the multichannel retailer can identify high-value customers. The data company also will use its customer segmentation and modeling capabilities to help HSN better target and engage customers.

“HSN strives to deliver an exceptional shopping experience for our customers, and this new partnership with Alliance Data will enhance that experience and ultimately help drive retail sales for HSN,” said Judy Schmeling, HSN Inc.'s EVP and CFO, in a statement.

Per the agreement, Alliance also will offer customer service, marketing, account acquisition and activation, card authorization, private label card issuance, statement generation, and other private-label and co-brand credit card services for HSN.

The private label credit card accounts purchased by Alliance Data through this deal generate between $100 and $200 million in receivables, and HSN parent company HSN Inc. claims annual revenues close to $3 billion.

In the last six months, Alliance Data also has signed private label and co-brand credit card agreements with Gander Mountain and Ann Taylor, among others.

HSN could not be reached for comment as of press time.

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