JPMorgan Chase & Co. is adding new dining and travel perks to its Sapphire credit card as it looks to bolster its base of affluent cardholders.
Chase on Aug. 22 launched a television advertisement to promote the perks, showing robots mechanically spray painting various items such as a toothbrush and a toaster and asking viewers to decide if doing so really makes the product better. The ad then tells viewers about Chase Sapphire’s new perks, which include offering two reward points per $1 spent on dining purchases and two points per $1 spent on travel purchases.
Sapphire’s no-fee card offers cardholders the extra points for dining, while its $95-per-year card offers points for both dining and travel, Sean O’Reilly, Chase general manager for the Sapphire card, tells PaymentsSource.
“The ad calls into question how people may have been thinking about value and tells them there may be a better card product out there for them,” says O’Reilly.
The message about Sapphire is that authentic and genuine rewards, such for things that Chase knows its cardholders consider important, are a better option than just what was traditionally considered good or “gold” five years ago, he says.
“We think we’ve got a better product that does better things than our competitors,” O’Reilly says.
Chase will launch at least three more ads for the campaign, which will run into 2012. The print portion of the campaign will start on Aug. 25, while the online, social media and broadcast portions started Aug. 22, says O’Reilly.
Chase boosted the rewards on two segments where it says its cardholders spend the most time and money.
“We’re about two years into the Sapphire program, and one thing we heard from customers is they are looking for more ways to accelerate their earnings,” says O’Reilly. “Dining and travel are two passion-point areas for this segment,” as those cardholders love to spend on and redeem points for travel and dining, he says.
Analysts say competition for affluent cardholders is fierce, and Chase is among the top competitors, along with American Express Co., which on Aug. 22 launched two cobranded cards with Mercedes-Benz USA (
In terms of offering more perks for dining and travel, “Chase is going for the low-hanging fruit,” Megan Bramlette, director of Auriemma Consulting Group, tells PaymentsSource. Many consumers in the relatively small affluent segment already have credit cards, so issuers such as Chase have to offer “appeal that is over the top and is something of super-high value,” she says.
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