Jan 10, 2007

TV ad shows how credit card rewards have become commoditized



This ad is for the Chase Freedom credit card. The entire consumer value proposition is this: “Feel free to choose cash back. And then change to points. And then change again, all with the same card and without losing a thing.”

I know that credit card rewards have become totally commoditized and look absolutely the same across all banks. I know that banks need even the smallest benefit to attempt to stand out just a little bit from the rest of the crowd. Still, even knowing all that, I can’t help but be amazed at how much money banks pour into advertising tiny incremental benefits.

Who is financing this? Merchants, of course, through interchange!

The following links give you more information on the Chase Freedom card:
Chase website
CreditCards.com
The Wise Marketer

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