Credit Card Marketing Can Be More Fun Than Selling Soap

Both Credit Cards and Soap for the most part are commodities. With soap it is largely about the very expensive game of buying recognition and differentiation through brand advertising, product positioning and distribution. Like many other package goods products the TUP Model can and often does come in to play. This assumes that volume can be influence by the trial rate, user rate and package rate (Volume = Trial Rate x User Rate x Package Rate). The trial rate can be enhanced through couponing, product sampling and sales promotions. The user rate can be influenced by creating customer loyalty, stickiness and user recommended compliance.  And last but not least the package rate can be driven by bundling different sizes, creating family packs and other creative strategies. In summary, the marketing challenge centers on generating initial and repeat sales.

Contrasting package goods marketing with card marketing opens up more opportunities for information based messaging and mass customization. Like the TUP Model, Creative Solutions, a card marketing direct to consumer advertising firm has developed Card Profit Equations to help steer marketing initiatives .

The top line drivers of profit include Gross Yield, Funding Costs, Losses and Operating Expenses. There are numerous sub equations and drivers which can all be influenced through insights, offers, customer treatments and messaging. At the Network Level, such as Visa, MasterCard, American Express, Discover and others the marketing process employs similar strategies to Package Goods. It’s about creating brand recognition and consumer preference, positioning against competing brands and cash by focusing on points of differentiation and competitive advantage.

For Visa and MasterCard, its like franchising, its up to each outlet or distributor to employ strategies and tactics that sustain a profitable business model. In this instance individual card issuers. This requires customer origination, activation, utilization, retention and payment management. Breaking down the drivers and what drives the drivers can be a key to customer relationship management and business profitability. Speed and frictionless payments in all points of marketing and product management should be the aspiration or in other words the Amazon model. This promotes impulse buying on your card versus someone else’s. This should be reinforced by maximizing Wallet Peak or in other words creative packaging. This can be done through technology integration of the card, creative card designs and universal add on features that promote consolidation of use.

As the high level Profit Equation is utilized to create and execute business rules to drive customer treatments champion and challenger strategies should be developed with appropriate control cells established. The marketing and product mixes can be fully deployed to drive specific tactics. Elements of the profit equation and corresponding tactics can be prioritized by ease of implementation and contribution. In the end it is a highly effective methodology and can have many more dimensions than a basic TUP Model. For more information contact Creative Solutions at .


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