They were born to be wild, and with the launch of two Toronto-Dominion Bank-brand affinity Visa cards, they can shop till they drop.
Harley-Davidson and Wal-Mart Canada have partnered with TD Visa to offer two new co-branded, no-fee credit cards. This is the first Canadian credit card partnership for both companies.
The addition of the two cards to the bank’s already successful GM-Visa card gives TD Bank a firm leadership position in the number of nationally recognized brand names affiliated with its Visa card.
There are nearly three million TD Visa credit cards in circulation, with the TD GM-Visa card still seen as one of the most successful affinity cards, says Walt Macnee, senior vice-president of TD Visa in Toronto.
‘We expect to see significant growth with the addition of two such internationally recognized brands,’ he says.
The image of bankers and bikers may seem incongruous, but td has had a long partnership with its other partner, Wal-Mart. The bank has 15 branches in Wal-Mart stores across Canada and plans to open more in the future.
td and Wal-Mart are hoping the new card’s low annual interest rate will be enough to attract consumers. The Wal-Mart Visa will charge an annual interest rate of 14.48%, about half the 28% charged by some competing cards.
Both the Harley and Wal-Mart cards feature an introductory rate of 6.88%. However, after the first six months, the Harley card rate will jump to 17%.
The Wal-Mart card will not offer a customer loyalty program or cash-back incentive to use the card. This is in keeping with the company’s no-gimmicks approach to doing business, Macnee says.
The Harley Visa includes a unique incentive – giving cardholders an entry into a weekly sweepstakes for a new Harley motorcycle for every dollar charged to the card.
The sweepstakes will continue in Canada until December 1999 when it will be re-evaluated, says Wendy Daniels, TD Visa Group manager.
A similar giveaway associated with the u.s. version of the card was recently voted best co-branded card program by American Banker magazine.
The Wal-Mart MasterCard issued in the u.s. by Chase bank was rated highest in customer satisfaction in a 1998 survey done by JD Power and Associates.
Milwaukee, Wisc.-based Harley-Davidson approached td earlier this year, attracted by the bank’s track record with the gm card, Daniels says. Wal-Mart, which does not offer its own credit card, had been looking for a Canadian partner for some time.
Other Canadian retailers have co-branded cards with the major banks. Zellers partnered with the Canadian Imperial Bank of Commerce for its Club Z Visa. Mortgage payments financed by the cibc are eligible for Club Z points to be redeemed at Zellers. Similarly, the Royal Bank Canadian Plus Visa earns cardholders frequent flyer points on Canadian Airlines.
Both Harley-Davidson and Wal-Mart customers have been shown to have strong brand loyalty and the new credit card partnerships give TD Bank access to both companies’ unique and very different niche markets, says Macnee.
The stereotypical image of a Harley-Davidson rider may be that of an outlaw biker with a penchant for busting up bars. However, in reality, he is more likely a married, middle-aged man with a household income of between $60,000 and $75,000 per year, says Don James, ceo of Fred Deeley Imports, the exclusive distributor of Harley-Davidson in Canada.
While 90% of Harley riders are men, Wal-Mart’s demographic skews more toward women and families with a lower discretionary income, Macnee says.
td will be marketing the Wal-Mart card through its retail outlets in Wal-Mart. Harley riders will be targeted through an extensive and ongoing direct mail campaign Harley keeps with its 19,000 registered owners in Canada.
The card will appeal not just to current owners of Harley-Davidson motorcycles but to people wanting to sample a little of the Harley lifestyle without having to strap-on a hog, says James.
‘Whether you are in a retail outlet or a restaurant, when you present this card, people are going to take notice,’ he says.
