If there's one thing that credit card companies really understand, it’s branding their credit cards. They know how to create a brand name that customers want to use, and their branding has been so successful that most households now have multiple credit card accounts and use them regularly. If you are running a business, you could learn some valuable lessons by paying attention to the way that credit card companies brand their cards. Here are three important lessons compiled by We Know Credit Cards that the banks can teach you about branding your business.
Top 3 Takeaways from Credit Card Branding
1. Multiple Propositions
If you have ever paid attention to the way that credit card companies market to customers, you will notice that they have multiple propositions for different people. They don't just have one credit card for everybody. They have many different credit cards and they try to market them to specific target markets. This is a marketing strategy known as multiplicity and it can really work. For example, they may have a black credit card with no limit for the high rollers who are looking for exclusivity. They may then have a rewards card that is designed for people who want to get something in exchange for their purchases. Then they might also have a secured card for people who have bad credit and need to be able to get some purchasing power again. If you implement this strategy in your own business, you can more successfully marketed different types of people. You don't have to be everything to everyone. You can pick and choose your target markets and then brand a product specifically for that group.
2. Catchy Brand Names
When you look at the different credit cards that are available, you might notice that they all seem to be very catchy or interesting names. The very names of the credit cards make you want to use them. For example, Citi has a card called the Simplicity card. The name of the card evokes a feeling that the card is going to be very simple to use and doesn't have a lot of hoops to jump through. Capital One has a card called Capital One Cash Rewards. Obviously, this card is one that offers a cash rewards program. With most of the credit cards out there, you know exactly what you are getting into just by hearing the name of the card. You don't have to guess what type of card you're getting because the brand gives you the value proposition right away.
3. Features and Benefits
Most of the time, successful credit card companies use trading strategies that include telling you about features and benefits. Instead of just telling you about the features of the card, they tell you what those features can do for you as a cardholder. Once you understand the benefits of having a card, you'll start to identify with using the card. You can see how the low interest rate will save you money and how the rewards program will get you some great rewards that you can take advantage of. Their commercial might show a cardholder relaxing on a cruise ship that he bought with his reward points. Once they start showing you the benefits of their particular brand, you are much more likely to eventually open an account with them and start spending.
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