A leading global bank with very strong credit card and wealth management businesses, with customers across the world. The client has some strong premium credit card businesses in Russia, UAE, Egypt, Poland, Czech Republic and France. The bank approached Xexec to run a campaign to target key customers of its wealth management and credit card businesses.
The client was worried about a growing competitive environment in core markets and an attrition rate that was steadily rising. Customer feedback had highlighted the fact that cardholders resented the annual fees that they were paying for their cards and the lack of perceived benefits. The customer base consisted of AB1’s with good levels of disposable income and a propensity to travel.
The client appointed Xexec to develop a customer benefit proposition which could be deployed to key ‘at risk’ segments of its global base to use as a retention tool.
Customer surveys had continually shown that cardholders attached a strong value to travel related benefits and this was the driver for the campaign.
As a leading provider of travel services, Xexec has built up a formidable reputation in the travel industry enjoying a very large buying power. Xexec built and developed for the client an exclusive proposition for ‘at risk’ cardholders, offering preferred access to 1000 of the best hotels in the world.
As part of the ‘Privilege’ proposition, cardholders have access to these luxury hotels with exclusive benefits which include; Free daily buffet/room service breakfast for two people, free upgrades at check in, free spa amenities and free dining credits. The value of these benefits on a typical four-night booking, can easily be in excess of £700. A bespoke website was built by Xexec which was fully branded for the client. We developed together with the client a brand identity for the product which the client has now utilised globally with a recent launch in China. The message to cardholders was that as a result of their banking relationship, they are now entitled to exclusive benefits around the world at their favourite hotels. This allowed the card and its annual fees to be repositioned not simply as a credit card but rather as an invitation-only privileged benefit.
The client immediately benefited from the creation of an exclusive product which it actually used as an acquisition tool in key segments. The response to the programme from cardholders was impressive, customer feedback showed that the product was highly rated and was the number one benefit that they associated with the card. Lapse rates for the targeted audience when compared with the general population were down by 4% and this is despite the targeted element being classed as being at greater risk. The demonstrable ROI to both the bank but also to the cardholder have undoubtedly driven the success of this campaign.