Вы находитесь на странице: 1из 2

CASE STUDY – CHASE SAPPHIRE

The Chase Sapphire Reserve card, a product launched in 2016 enthusiastically received by
millennial customers. The card reached its annual new customer acquisition goal within ten days
of the launch made the relevance. Their great appeal to customers actually made it by way of
100000 points sign-up bonus, $300 annual travel credit and points-to-dollar conversion. They
were able have an impact on market and it captured 15% of market share. Their business lines
where banking, asset and wealth management, consumer and community banking etc. Chase
Sapphire were also refocusing on the remainder of the Chase Sapphire product portfolio to assess
differentiation among the products and to identify space in the market that could support
additional new product launches. According to company research this group represented 15% of
the 200 million U.S. cardholders, generating 50% of total spending on credit cards, of which
Chase was capturing 15% market share. Chase understood the consumer behavior before any of
their competitors understood the consumer’s demand and interests. The additional benefits
include on travel and dining, annual travel credit of $300 and most importantly offering the
Chase sapphire reserve card with a 100,000 bonus points on sign up made them separate out in
the market in bringing new and young millennial customers, who marketed the product
extensively for free. People posted several posts and unboxing videos of their sapphire card on
social media.

Even if competitors such as Amex and Citibank who also launches new travelling focused
products with similar sign-up bonus and annual fee Chase Reserve seems to be winning the
minds and hearts of millennial customers. Their emphasis on premium travel redemptions and
strong rewards along with addressing customer value by finding all the ways to improve the
customer satisfaction. They employed people who have work experience in the similar sector to
improve customer satisfaction. Their customer service representatives’ goal was to answer 85%
of calls within 20 seconds and resolve the customer queries in first call itself. The celebrities
share their experiences about chase sapphire card and the services through highly social content
delivered to millions of followers on social platform and creating main promotional events to
discuss about their perspectives on their products. This also attributed to the growth and
increased demand when these people are there to share their experiences with unboxing videos
and all. Chase sapphire understood the needs and demands of the customers and provided them
exclusive offers like strong rewards, premium travel redemptions, and exceptional customer
services. The bundle of rewards and bonus points switch other customers by changing their
perceptions and engage with their cards,created a customer lifetime value. They majorly targeted
millennial population as they were the one who were most interested in these products and being
more loyal to the brand. Chase earned estimated 70% of its revenue from interest payments and
30% from the cardholders and interchange fees. Chase Sapphire mainly focused in building
customer delight and satisfaction through their products and services.

Вам также может понравиться