BOCA RATON, Fla. -
Perks Everyday, the Discover Network Premium Card, Cash Over and Discover Network Zip are all in response to retail customers and members of the public asking for more products from Discover, said Beth Horowitz, vice president of product management. With years of retail experience, Horowitz said Discover Network is here to stay for its card users, both consumers and merchants.
"They want our brand. Issuers have been asking for more product and services. Our customers are expecting that," she said. "These are elements of us becoming a different kind of company. It's a very natural progression."
Perks Everyday is a points-based rewards program providing issuers with a turnkey or customized plan that allows members to earn points at card purchase or during transactions to buy gifts, products or services.
Discover Network Zip is a new contactless payment technology using radio frequency or near field communications and which supports cards, cell phones, PDAs or key chain fobs.
Cash Over will be Discover Network's product for providing cash back to consumers from their credit card at the point of sale. Horowitz said this feature will help drive a CU's card to the front of the wallet and also reward retailers using the Discover card.
"Merchants want rewards, too," she said.
Targeting The Affluent
The Discover Network Premium Card is targeted at affluent members and offers benefits that include concierge service and specialized awards. Horowitz said this affluent segment is typically earning $100,000 per household, is very resistant to market downturns, and spends 2.5 times more on their card than normal consumers. Compared to 11.7 card transactions per month this segment conducts more than 25 per month. This segment uses multiple products and has come to expect rewards and credit unions need to "use them or lose them," she said.
"The affluent member is a highly engaged customer," she said. "That level of engagement creates higher loyalty. Don't let them leave."
Horowitz said any rewards program is just one part of driving member loyalty, but it's a program that has become a "part of life" today. She suggested that Discover Network's new product line will also serve as a retention tool for credit unions and merchants.
But, Horowitz said Discover knows that credit unions and merchants are also swamped with work, which drove the decision to create a turnkey solution.
"We'll do the work for you," she said.
Horowitz said any credit union should offer rewards, but to select one type of credit or debit card, gain experience and then expand, which Discover Network cards are intended to do.
