In an effort to differentiate its Canadian Plus Visa card from a host of gold card competitors, Royal Bank Financial Group is emphasizing the card’s principal benefit – travel rewards – in a national relaunch.
‘With the number of cards competing with each other, we found that customers were confused about what was out there,’ says Jennifer Crilly, manager, direct marketing at Royal Bank. ‘We decided to focus our information on the major benefit of the Canadian Plus card, which is the travel points.’
The credit card was originally offered through Royal Trust, but with the integration of Royal Bank and Royal Trust as The Royal Bank Financial Group in September, the financial institution decided to introduce a card with enhanced features.
Users are entitled to 5,000 travel points upon enrolment – double the points offered by both the original Canadian Plus card and the competition, CIBC Aerogold Visa. Aerogold points are redeemed through Aeroplan, Air Canada’s points program.
Both cards grant users a point for every dollar spent, with bonus points offered through special promotions. The Canadian Plus card, however, has broader travel insurance coverage, says Crilly. In addition to the standard car rental and travel accident insurance offered with gold cards, Canadian Plus includes emergency purchase insurance which covers the cost of clothing and toiletries in the event the cardholder’s luggage is lost.
The annual fee remains $120.
The new card has a bold design in keeping with the travel theme. A compass illustration is prominently displayed. The card also features logos for both the Canadian Plus air miles program and Royal Bank Financial Group.
The card is being heavily promoted through direct mail.
Crilly says the prospect list was derived using predictive modeling – a database marketing method that allows a company to predict the behavior of customers using known variables about their past and current habits.
The bank used a statistical formula to create a demographic profile of current Canadian Plus card holders, says Crilly. That profile was then matched to a database of Visa Classic card holders, users of competitors’ cards and members of Canadian Airlines Canadian Plus frequent flyer program, to determine the most likely prospects.
‘It’s the first time we’ve used this approach,’ says Crilly. ‘We’re not just targeting general consumers whom we think may be interested in this card but we’re using quite a sophisticated approach.’
According to Crilly, the information Royal Bank is using is general in nature and does not cross the line into client privacy. She says it is the most extensive mailing ever executed for the Canadian Plus Visa card.
The package, developed by Toronto-based Grey Direct, is larger than average size and is designed to look like an airmail envelope.
A brochure and personalized letter focus on the card’s travel benefits and illustrate how typical monthly spending can earn points. The direct mail tag line – ‘More points. More travel. More often’ – is also designed to position the card as a travel benefits product.
The Royal Bank is supporting its direct mail effort with advertising in daily newspapers, in magazines and on airport billboards.
