I thought the biggest challenge that Chase Sapphire faced was their initial audience targeting. Social media is one of many tools that could have been utilized. They marketed their Reserve Card to a wide range of consumers that were not all well suited for the product, or just wanted it for the incentives. Those customers will need to be converted to one of Chase Sapphire’s other cards that better match their needs. Chase Sapphire needed to build brand loyalty to convert those consumers, so they do not close their accounts or go dormant.
My recommendation had two parts. The first part was to create a customer profile for each card and evaluate the first 3-6 months of new Reserve card holder’s spending. Through this they would be able to categorize the consumer and see which card is right for them based on their spending habits, payments, and industry categories of spending. This leads into the second part of my recommendation. This was to invest in their customer service call center and utilize customer consulting. This means they would have time to advise and guide their consumers to the Sapphire card that is right for them. I also recommended that a survey be put online that will help connect them with the correct Sapphire card, as there would not be enough time to connect with every customer. The brand already had a competitive advantage of a fast and helpful customer service center and understanding the consumer. By using this recommendation, Chase Sapphire would only enhance that brand perception.
1. What do you think of the above idea? Do you agree or disagree? Explain why and give some specific samples/cases to support your ideas.
In the given excerpt, we are provided with the case study of Chase Sapphire, which basically provides credit cards to eligible customers. In this case study, however the researcher or the marketer figure outs that most of the cards facilitated weren't closed or going dormant, which in actuality wasn't due to the issue with the selection of the target market but due to the wrong judgement within the right target market.
The passage points out the two recommendations given by the marketer, and we need to give our take on their recommendations and support our verdict with case references.
Briefing the entire given passage into a few transient statement, the marketer becomes aware of the loopholes in the marketing activities done in order to sale the Chase card, which is not due to the issue with wrong target market but the classification and segregation within that target market which needs to be addressed as well as offered correctly and separately with their specific requirements, habits, interests, spending capabilities, occupation etc. (Demography, Psychographic) via social media or online platforms and mediums.
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