© 2016 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.
Chase Sapphire Reserve
September 2016
Table of Contents Reserve vs. Preferred
3
Launch Timeline
4
Application and new customer communication
8
Welcome Kit
10
Public Reception
13
What We Think
15
Appendix
16
Benefits vs. Other HNW Cards Application Process in detail
2
Headlines linked to source
Sapphire Reserve offers a higher earn and redeem than Preferred Sapphire Reserve
Sapphire Preferred
Annual Fee
$450
$95 (waived first year)
Bonus Incentive
100k bonus points after $4k spend in 3 months
50k bonus points after $4k spend in 3 months
Reward Earn
3X points on dining and travel, 1X point on everything else
2x points on dining and travel, 1X point on everything else
Reward Redemption
1.5X point redemption rate through portal
1.25X point redemption rate through portal
Product, Car Rental, Trip Insurance
Product, Car Rental, Trip Insurance
Full coverage Car Rental Insurance Visa Infinite Concierge Services Features
Access to Reserve Events Priority Pass Airport Lounge Access $300 annual travel credit, $100 Global Entry/TSA Pre-Check application fee credit
3
Launch Timeline
Mon, 8/15
Mon, 8/22
Tues, 8/23
Fri, 8/29 First cards arrive to customers
thepointsguy.com (TPG) announces the card
Sapphire Reserve micro site goes live
Official Chase Press Release
Chase tweets a link to the TPG article
Applications officially available online
Chase Twitter and Facebook covers feature card imagery
First Banner Ads on TPG
Chase Tweets a link to press release
Sponsored Instagram post from TPG
4
8/15 | thepointsguy.com announces CSR, Chase tweets a link to the article
Thepointsguy.com article
325K Followers; 488 Engagements
5
Source: Mintel Social Media Monitoring as of 9/15/2016. Images are linked to source.
8/22 | Micro site up, applications available, first banner ad appears on TPG Micro site header
Banner ad clicked through to micro site
6
Images are linked to source.
Micro site detail
8/23 | Official Press Release from Chase, social media updates 326K Followers; 180 Engagements
Official Press Release
A sponsored post from The Points Guy Instagram account hypes the card, and links to the TPG article about the launch
Chase’s Twitter and Facebook cover pages were updated with the same image
7
Source: Mintel Social Media Monitoring as of 9/15/2016. Images are linked to source.
Application Process
Applicants not instantly approved met this screen after applying
Instantly approved applicants reached this page
Screenshots from the entire application process available in the Appendix. 8
Welcome email links to benefits page
9
Email sourced from Mintel ePerformance/eDataSource. Volumes as of 9/16 are not high enough to provide metric estimates. Benefits site linked to source
Welcome Kit | Applications and Approvals exceeded supply of metal cards Some new customers received plastic cards with the below insert assuring them that the metal card would arrive soon as available.
Some customers who received the metal card and welcome box posted photos on social media sites
10
MarketWatch article linked to source. Metal Card image sourced from Reddit.com
Welcome Kit | Welcome form highlights earn and benefits
Sapphire Reserve customers received the standard Sapphire cardmember agreement.
11
Cardmember agreement linked to online pdf. Online source is for Chase Sapphire Preferred, therefore, reflects a $95 annual fee on the first page.
Welcome Kit | Benefits Guide and Ultimate Rewards Program Agreement
12
MarketWatch article linked to source. Metal Card image sourced from Reddit.com
Public Reception | Word-of-Mouth Marketing “[Demand] significantly exceeded our strongest expectations”
The #SapphireReserve handle on Twitter reflects consumer excitement
-Lauren Francis, Chase Spokesperson1
•
•
•
13
According to a Bloomberg article, Chase claims it spent zero advertising dollars on the card as of September 2nd, relying entirely on blogs and word of mouth. However, there was one banner ad placed on the thepointsguy.com website the day of the card launch. Chase is a top advertiser on the thepointsguy.com site. Pathmatics estimates that Chase has spent $2.05M on advertisements on the site from January 1 – September 15, 2016. According to Pathmatics, TPG was the top site for Chase media spend for 2016 YTD, followed by flyertalk.com at $2.03M. The launch was met with intense excitement in the “churner” community as well as among frequent flyer blogs. A large number of sites have already claimed that the card is the best travel card available. 1. Bloomberg.com article Inc.com article linked to source
Public Reception | “Churning” Reddit, a social media site, has a dedicated Churning section. The Churning “sub-Reddit” has a Chase Sapphire Wiki, reflecting to the excitement about the card.
A TPG article about the 5/24 rule from July 26th
Bloomberg Article highlights churning for the CSR launch
• •
• •
14
Churning is the process of opening a credit card just for the acquisition bonus, then closing it after the bonus is earned to avoid fees and limit interest charges. The practice has become increasingly popular as of late, and there is an established community of “Churners” which use social media sites, like Reddit, to share tips and news. Churning is thought to be the driving force between Chase’s 5/24 rule. The rule states that if an applicant has opened 5 accounts within the past 24 months, they are likely to be denied for an additional account. Sapphire Reserve likely anticipated some level of churning, charging new account holders with the $450 annual fee in the first month of membership. Images hyperlinked to source.
What We Think…
Mintel’s Blog Chase Sapphire Reserve: What Marketers Need To Know highlights how “blogger power”, premium value, and a shake up in the affluent card market, have led to the Sapphire Reserve’s acquisition success.
Chase Sapphire Reserve has the richest travel rewards earn and bonus, and, the highest APRs and balance transfer fees, among premium travel cards. The lowest APR offered on Sapphire Reserve, at 16.24%, is at least 75 basis points higher than its peers, with the exception of the United Mileage Plus Club Card—also issued by Chase. The Sapphire Reserve Card is clearly competing on points, not price. 1
Chase CFO, Marianne Lake, said during the bank’s Q2 earnings call that a recent increase in near-prime targeting for cards did not detract from Chase’s “[D]esire to want to be in with engaged customers and our rewards programs, our products are [still] geared towards that.” This card, with a category leading earn and incentive bonus, reflects that rewards program focus.
15
1. Q2 Earnings Call Highlights
Appendix: Purchase and service related benefits Chase Sapphire Reserve
American Express Platinum
Barclaycard Black
Barclaycard Gold
Citi Prestige
J.P. Morgan Palladium
Chase United MP Club
Annual Fee
$450
$450
$495 ($195 for add. User)
$995 ($295 for add. User)
$450 ($50 for add. user)
$595 ($90 for add. user)
$450 (waived first year if qualify)
Concierge
Yes
Yes
Yes
Yes
Yes
Yes
No
-
Car Rental, Luggage, Trip, Medical, Emergency Services
Car Rental, Luggage, Trip, Medical, Hotel Burglary, Emergency Services, Legal Assistance
Car Rental, Luggage, Trip
Purchase, Damage and Theft, Price, Extended Warranty, Return
Purchase, Return, Price, Airline Ticket Protection
Purchase, Return, Extended Warranty, Damage and Theft, Event, Price
Roadside Assistance, Missed Event Ticket Protection
Roadside assistance, emergency translation services, Cruise loyalty program, travel planning,
Waiver for closein* award booking fees
Insurance
Full Car Rental Coverage, Trip, Baggage, Medical, Legal Assistance, Travel Accident
Car Rental, Trip, Medical, Legal Assistance
Purchase Protection
Purchase, Return, Extended Warranty, Price Protection
Purchase, Return, Extended Warranty, Damage and Theft, Event
-
-
Invitation Only events, Visa Signature Private Dinner Service,
Invitation Only events program, Secured reservations at top restaurants, Preferred seating, Luxury Magazine
Luxury gifts, Airport Representatives, Personal Driver Services, Global Luggage Delivery, Select Car Rental Partners, Luxury Magazine
Luxury Gifts, Airport Representatives, Personal Driver Services, Global Luggage Delivery, Select Car Rental Partners, Luxury Magazine
Other
16
-
Benefits information sourced from acquisition websites, terms and conditions, and online card reviews. Not all benefits are listed for every card. Blank spaces denote that specifics on those benefits were not found. * Close-in fees are fees for award travel booked with 21 days of departure.
Appendix: Pricing and Travel related benefits Chase Sapphire Reserve
American Express Platinum
Barclaycard Black
Barclaycard Gold
Citi Prestige
J.P. Morgan Palladium
Chase United MP Club
$450 ($75 for add. User)
$450
$495 ($195 for add. user)
$995 ($295 for add. user)
$450 ($50 for add. user)
$595 ($90 for add. user)
$450 (waived first year if qualify)
16.24% - 23.24%
Charge Card
15.24%
15.24%
15.49%
n/a
16.24% - 23.24%
BT Fee
5%
n/a
$0. Also 0% BT Apr for 15 mos
$0. Also 0% BT Apr for 15 mos
3%
n/a
5%
Credits
$100 Global Entry Credit / $300 Airline Credit
$100 Global Entry Credit / $200 Airline Credit
$100 Global Entry Credit / $100 Airline Credit
$100 Global Entry Credit / $200 Airline Credit
$250 Airline credit
$100 Global Entry Credit
$100 credit upon sign-up
3X points on travel and dining worldwide. 50% bonus for points travel booked through portal
2X points on travel booked through portal
2X points when redeemed for airfare; worth 1.5% for cash
2X points when redeemed for airfare; worth 2% for cash
3X points for Air and travel; 2X points for Dining and Entertainment
2X points for Travel; 3X if booked through Ultimate Rewards
2X miles on United purchases, 1.5X miles elsewhere
Barclays Luxury Hotel Program
Complementary 4th night on stay booked through Concierge
Accelerated savings through use of points at Ultimate Rewards hotel partners including Fairmont, Hyatt and Ritz-Carlton
Hyatt Platinum, Luxury Hotels and Resorts
Marquis Jet, British Airways. Accelerated redeem through Ultimate Rewards portal
United (Free checked bags, priority access), 2 for 1 Business First tickets
Priority Pass, United Club
United Club
Annual Fee Purchase APR
Special Rewards Earn / Redeem
Hotel Loyalty Program
Luxury Hotel & Resort Collection
Fine Hotels and Resorts ; Hilton HHonors Gold
Airline Loyalty Program
1:1 points transfer to popular frequent flyer programs
Companion fare savings on over 20 airlines; 20% on Delta
Private Flight Charter Services
Private Flight Charter Services
Virgin Atlantic, Singapore Airlines, Flying Blue and more
Airport Lounge Program
Priority Pass
Centurion, Delta SkyClub, Priority Pass, Airspace
Lounge Club
Lounge Club
AA Admiral Club, Priority Pass
17
Barclays Luxury Hotel Program
Benefits information sourced from acquisition websites, terms and conditions, and online card reviews. Not all benefits are listed for every card
Appendix: Application pg. 1
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Appendix: Application pg. 2
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Appendix: Application pg. 3
20
Appendix: Application pg. 4
21
Appendix: Application pg. 5
22
Appendix: Application pg. 5 continued
23
Appendix: Application pg. 6
24
Appendix: Application pg. 7, Non-immediate approval
25
Appendix: Application pg. 7, Immediate approval
26
Appendix: Application pg. 8, Immediate approval
27
Appendix: Application pg. 8, Immediate approval
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