Jun 9, 2012

Using Fan Clubs to increase premium card usage

Gold, Platinum and other premium cards by Visa and MasterCard generate higher interchange fees, which allows banks and payment brands to spend more on advertising. With Fan Clubs on Facebook linked to premium card brands, retailers can get more fans and free word of mouth advertising sponsored by banks and payment brands.

This is a mock-up of what a merchant Fan Club promotion might look like when powered by Visa. In this mock-up, customers that are fans of the merchant's Facebook Page enjoy an exclusive discount when they pay using a Visa premium card.

Each time a purchase is made, the customer's friends see a check-in wall post advertising the merchant and the payment brand. Paid Facebook advertising boosts visibility among friends.

The merchant funds the discount, mainly because it's to the merchant's own fans, and the payment brand funds the advertising costs on Facebook.

Merchants get lots of free word of mouth advertising, bundled in the payment fees they are already paying.

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