Chase Sapphire Reserve - Mintel PDF Free Download

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Table of ContentsReserve vs. Preferred3Launch Timeline4Application and new customercommunication8Welcome Kit10Public Reception13What We Think15Appendix16Benefits vs. Other HNW CardsApplication Process in detail2Headlines linked to source

Sapphire Reserve offers a higher earn and redeem than PreferredSapphire ReserveSapphire PreferredAnnual Fee 450 95 (waived first year)Bonus Incentive100k bonus points after 4kspend in 3 months50k bonus points after 4k spend in3 monthsReward Earn3X points on dining and travel,1X point on everything else2x points on dining and travel, 1Xpoint on everything elseRewardRedemption1.5X point redemption ratethrough portal1.25X point redemption rate throughportalProduct, Car Rental, TripInsuranceProduct, Car Rental, Trip InsuranceFull coverage Car RentalInsuranceVisa Infinite Concierge ServicesFeaturesAccess to Reserve EventsPriority Pass Airport LoungeAccess 300 annual travel credit, 100Global Entry/TSA Pre-Checkapplication fee credit3

Launch TimelineMon, 8/15Mon, 8/22Tues, 8/23Fri, 8/29First cards arriveto customersthepointsguy.com (TPG)announces the cardSapphire Reservemicro site goes liveOfficial ChasePress ReleaseChase tweets a link tothe TPG articleApplicationsofficially availableonlineChase Twitter andFacebook coversfeature cardimageryFirst Banner Adson TPGChase Tweets alink to pressreleaseSponsoredInstagram postfrom TPG4

8/15 thepointsguy.com announces CSR, Chase tweets a link to the articleThepointsguy.com article325K Followers; 488 Engagements5Source: 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 TPGMicro site headerBanner ad clicked through to micro site6Images are linked to source.Micro site detail

8/23 Official Press Release from Chase, social media updates326K Followers; 180 EngagementsOfficial Press ReleaseA sponsored post from ThePoints Guy Instagramaccount hypes the card,and links to the TPG articleabout the launchChase’s Twitter and Facebook cover pageswere updated with the same image7Source: Mintel Social Media Monitoring as of 9/15/2016. Images are linked to source.

Application ProcessApplicants not instantly approved met this screenafter applyingInstantly approved applicants reached this pageScreenshots from the entire application process available in the Appendix.8

Welcome email links to benefits page9Email 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 cardsSome new customers received plastic cards with the below insertassuring them that the metal card would arrive soon as available.Some customers who received the metal card andwelcome box posted photos on social media sites10MarketWatch article linked to source. Metal Card image sourced from Reddit.com

Welcome Kit Welcome form highlights earn and benefitsSapphire Reserve customers received the standard Sapphire cardmember agreement.11Cardmember 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 Agreement12MarketWatch article linked to source. Metal Card image sourced from Reddit.com

Public Reception Word-of-Mouth Marketing“[Demand] significantly exceeded ourstrongest expectations”The #SapphireReserve handleon Twitter reflects consumerexcitement-Lauren Francis, Chase Spokesperson1 13According to a Bloomberg article, Chase claims it spent zero advertisingdollars on the card as of September 2nd, relying entirely on blogs and wordof mouth. However, there was one banner ad placed on thethepointsguy.com website the day of the card launch.Chase is a top advertiser on the thepointsguy.com site. Pathmaticsestimates that Chase has spent 2.05M on advertisements on the sitefrom January 1 – September 15, 2016. According to Pathmatics, TPG wasthe top site for Chase media spend for 2016 YTD, followed byflyertalk.com at 2.03M.The launch was met with intense excitement in the “churner” community aswell as among frequent flyer blogs. A large number of sites have alreadyclaimed that the card is the best travel card available.1. Bloomberg.com articleInc.com article linked to source

Public Reception “Churning”Reddit, a social media site, has a dedicated Churningsection. The Churning “sub-Reddit” has a Chase SapphireWiki, reflecting to the excitement about the card.A TPG article about the 5/24 rule from July 26thBloomberg Article highlights churning for the CSR launch 14Churning is the process of opening a credit card just for the acquisition bonus, then closing it after thebonus 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 applicanthas 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 450annual 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 highlightshow “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, thehighest APRs and balance transfer fees, among premium travel cards. The lowestAPR offered on Sapphire Reserve, at 16.24%, is at least 75 basis points higherthan its peers, with the exception of the United Mileage Plus Club Card—alsoissued by Chase. The Sapphire Reserve Card is clearly competing on points, notprice.1Chase CFO, Marianne Lake, said during the bank’s Q2 earnings call that a recentincrease in near-prime targeting for cards did not detract from Chase’s “[D]esire towant 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 incentivebonus, reflects that rewards program focus.151. Q2 Earnings Call Highlights

Appendix: Purchase and service related mBarclaycardBlackBarclaycardGoldCiti PrestigeJ.P. MorganPalladiumChase UnitedMP ClubAnnual Fee 450 450 495 ( 195 foradd. User) 995 ( 295 foradd. User) 450 ( 50 for add.user) 595 ( 90 for add.user) 450 (waived firstyear if qualify)ConciergeYesYesYesYesYesYesNo-Car Rental,Luggage, Trip,Medical,EmergencyServicesCar Rental,Luggage, Trip,Medical, HotelBurglary,EmergencyServices, LegalAssistanceCar Rental,Luggage, TripPurchase,Damage andTheft, Price,ExtendedWarranty, ReturnPurchase, Return,Price, AirlineTicket ProtectionPurchase, Return,ExtendedWarranty,Damage andTheft, Event,PriceRoadsideAssistance,Missed EventTicket ervices, Cruiseloyalty program,travel planning,Waiver for closein* award bookingfeesInsuranceFull Car RentalCoverage, Trip,Baggage,Medical, LegalAssistance,Travel AccidentCar Rental, Trip,Medical, xtendedWarranty, PriceProtectionPurchase, Return,ExtendedWarranty,Damage andTheft, Event--Invitation Onlyevents, VisaSignaturePrivate DinnerService,Invitation Onlyevents program,Securedreservations attop restaurants,Preferred seating,Luxury MagazineLuxury gifts,AirportRepresentatives,Personal DriverServices, GlobalLuggage Delivery,Select Car RentalPartners, LuxuryMagazineLuxury Gifts,AirportRepresentatives,Personal DriverServices, GlobalLuggage Delivery,Select Car RentalPartners, LuxuryMagazineOther16-Benefits information sourced from acquisition websites, terms and conditions, and online card reviews. Not all benefits are listed for every card. Blankspaces 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 mBarclaycardBlackBarclaycardGoldCiti PrestigeJ.P. MorganPalladiumChase United MPClub 450 ( 75 foradd. User) 450 495 ( 195 foradd. user) 995 ( 295 foradd. user) 450 ( 50 foradd. user) 595 ( 90 for add.user) 450 (waived firstyear if qualify)16.24% - 23.24%Charge Card15.24%15.24%15.49%n/a16.24% - 23.24%BT Fee5%n/a 0. Also 0% BTApr for 15 mos 0. Also 0% BTApr for 15 mos3%n/a5%Credits 100 GlobalEntry Credit / 300 AirlineCredit 100 Global EntryCredit / 200Airline Credit 100 GlobalEntry Credit / 100 AirlineCredit 100 GlobalEntry Credit / 200 AirlineCredit 250 Airline credit 100 Global EntryCredit 100 credit uponsign-up3X points ontravel and diningworldwide. 50%bonus for pointstravel bookedthrough portal2X points ontravel bookedthrough portal2X points whenredeemed forairfare; worth1.5% for cash2X points whenredeemed forairfare; worth2% for cash3X points for Airand travel; 2Xpoints for DiningandEntertainment2X points for Travel;3X if booked throughUltimate Rewards2X miles on Unitedpurchases, 1.5Xmiles elsewhereBarclays LuxuryHotel ProgramComplementary4th night on staybooked throughConciergeAccelerated savingsthrough use ofpoints at UltimateRewards hotelpartners includingFairmont, Hyatt andRitz-CarltonHyatt Platinum,Luxury Hotels andResortsMarquis Jet, BritishAirways.Accelerated redeemthrough UltimateRewards portalUnited (Freechecked bags,priority access), 2for 1 Business FirstticketsPriority Pass, UnitedClubUnited ClubAnnualFeePurchaseAPRSpecialRewardsEarn /RedeemHotelLoyaltyProgramLuxury Hotel &Resort CollectionFine Hotels andResorts ; HiltonHHonors GoldAirlineLoyaltyProgram1:1 pointstransfer topopular frequentflyer programsCompanion faresavings on over20 airlines; 20%on DeltaPrivate FlightCharter ServicesPrivate FlightCharter ServicesVirgin Atlantic,SingaporeAirlines, FlyingBlue and moreAirportLoungeProgramPriority PassCenturion, DeltaSkyClub, PriorityPass, AirspaceLounge ClubLounge ClubAA Admiral Club,Priority Pass17Barclays LuxuryHotel ProgramBenefits information sourced from acquisition websites, terms and conditions, and online card reviews. Not all benefits are listed for every card

Appendix: Application pg. 118

Appendix: Application pg. 219

Appendix: Application pg. 320

Appendix: Application pg. 421

Appendix: Application pg. 522

Appendix: Application pg. 5 continued23

Appendix: Application pg. 624

Appendix: Application pg. 7, Non-immediate approval25

Appendix: Application pg. 7, Immediate approval26

Appendix: Application pg. 8, Immediate approval27

Appendix: Application pg. 8, Immediate approval28

[still] geared towards that." This card, with a category leading earn and incentive bonus, reflects that rewards program focus. Chase Sapphire Reserve has the richest travel rewards earn and bonus, and, the . Marquis Jet, British Airways. Accelerated redeem through Ultimate Rewards portal United (Free checked bags, priority access), 2 for 1 .