Chase Freedom card offers loyalty reward choice

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By: Wise Marketer Staff |

Posted on September 26, 2006

Chase Freedom card offers loyalty reward choice

Chase Bank USA has launched a new credit card called 'Chase Freedom', giving cardholders a greater degree of control than usual over their loyalty reward options.

Chase Freedom allows cardmembers to change the types of rewards they earn - cash, or rewards points - as their needs change, without losing any accumulated rewards.

Point of differentiation The aim of the card was to differentiate itself from others already in the market by offering cardholders an ongoing choice between cash and loyalty points.

According to Carter Franke, chief marketing officer for Chase Card Services, "Customers told us they want more control and flexibility, and we're meeting their needs by giving them the freedom to choose, the freedom to change and the freedom to earn more. We also have the advantage of blink-enabled [contactless] purchases at more than 30,000 merchant locations nationwide."

Cardholders who want access to a rewards catalogue can choose to earn points toward brand-name merchandise, retail and restaurant gift certificates, travel on many airlines. But those who want to be rewarded financially for using their card can simply choose the cash-back reward option.

Cardholder benefits Available as either Visa or MasterCard, the new card offering's simplified reward programme offers a number of benefits. For example:

  • Every purchase earns rewards;  
  • Triple rewards are earned on eligible purchases at grocery stores, fuel retailers, and quick service restaurants;  
  • For those opting for cash-back, the more they save, the more they earn - there's a US$50 bonus for every US$200 earned;  
  • Cardholders can change between cash-back and reward points as their needs or desires change;  
  • There is no loss of cash or points when changing between reward options;  
  • The card carries no annual fee.

Consumer feedback Chase created Chase Freedom's features based on direct feedback from consumers. Focus groups and other research efforts gathered ideas from thousands of consumers representing a diverse range of current and potential Chase customers. Chase Card Services commissioned an online survey of 1,191 adult Americans, and found that 64% would like to change their existing credit card reward features to receive cash-back instead.

According to Franke, "Chase Freedom is the most researched product in our history. To learn precisely what choices our customers wanted, we sought their advice on everything from the types of cash-back and redemption options that most interested them, to what they found most restrictive with other offerings."

More Info: 

http://www.chase.com/freedom