Chase: Control Evolution

When a direct mail marketer takes a successful direct mail package and tweaks it, it is often referred to as "Control Evolution". This is often executed one of three ways:

1.       The nature of the offer has changed but the marketer chooses to retain the creative package. Same creative style, same package, new offer.

2.       The new package goes through an A/B test compared to the existing Control. The winner is the new Control.

3.       The marketer chooses to make changes but does not test against it.

In the case of this self-mailer I received from Chase, it appears that approach #2 or #3 applied -- with some notable changes compared to the solicitation package I received from Chase last summer:

Chase: Double the Mail, Double the Fail

Two, two packages in one

I recently received not one but two solicitations for the Chase United MileagePlusExplorer card. The pieces were addressed exactly the same to me. The lack of removing duplicate names is a classic Fail for List.

Is this a side effect of the Continental / United merger?

The inside flap of the self-mailer shows my mileage balance -- a prudent and creative method of demonstrating the potential of the credit card by showing how many miles I can get for acquiring the credit card. However, in this case, the difference between the two mailers also suggests why I received two of them. One reflects my miles balance on my legacy Continental OnePass account while the other reflects my balance on a legacy United MileagePlus account. 

The man holding the credit card on the mailer I received appears to be African-American while the man holding the credit card on the landing page, billboards, and TV ads look like a young Jeff Goldblum. Why the difference? Did Chase attempt to appeal to a presumed heritage based on the fact that my last name is Davis? If so, that would be a Fail for List & Creative because I don’t fit the racial profile.

Chase Bank appeals to an incorrect racial profile -- twice.

Lessons: 

1. Dedupe your solicitation mailing list by name and address. 
2. Carefully consider when and how to use race-based visuals.

Chase Credit Cards: When a fee is not a fee

Outer Envelope

Earlier this year, I wrote how a Presidential Plus credit card offer from Chase was a Fail for Creative and Offer. The letter was confusing and defensive and sent at a time when it was not clear to the consumer — and perhaps to Chase — which cardmember benefits would be available with the card.

Stronger Cover Letter

A more recent version of the solicitation arrived in my mailbox. Rather than cite the merger, the letter ignores it.  Smart move. Instead it leads with a competitive rebuttal to the AmericanExpress Platinum Card, leveraging the fact that people with Chase’s Presidential Plus Card can visit the Presidents Club, while those with a Platinum Card have to wait for their flight with the little people. The letter is smartly signed by someone from Continental Airlines rather than someone from United Airlines. In this respect, the letter is a dramatic improvement.

The package merits a Fail for Creative and Offer for Chase’s communication of the benefit of no foreign transaction fees. Over the past decade, nearly all the major banks have increased their foreign transaction fee from 1% to 3%. In fact, until a few months ago, only Capital One did not charge the fee. For a $5,000 business trip — including lodging, dining, transportation and other expenses — 3% in transaction fees means $150 in costs for engaging in normal purchasing behavior. A savings of 3% in and of itself is more attractive to international business travelers than frequent flyer miles with an implied benefit of ½% to 2% of the purchase amount.

Colorful insert

Back of colorful insert with benefit description

The benefit is cited in a colorful insert but not the cover letter. That is a bit of a miss. The insert references checking the back of the cover letter, which does mention (though in small type) that there are no foreign transaction fees. But the Fail is that the official legal communication of pricing information, the Schumer Box, lists in clear 12-point typeface in the Fees section “Foreign Transactions: 3% of each transaction in U.S. dollars.”

The back of the letter mentions "Foreign Transaction Fee: None" however ...

... the Schumer Box, the legal documentation of account terms, mentions 3% Foreign Transaction fee

The package included a color benefits brochure

Also, why is the response URL continentalpresplus.com? The card being sold is the Presidential Plus Card that reads on the card “Presidential Plus”. So why not use presidentialplus.com, chasepresplus.com, presidentialpluscard.com or even chaseprespluscard.com?

Lessons:

1. Communication of offers and benefits should be consistent throughout your package, especially when legal documents are involved.
2. If your product has a strong benefit, communicate it in your cover letter.
3. When a response method is online, use a URL that properly describes the product or is easy for a consumer to remember.

Chase Credit Cards lays an egg with this Fail

Banks are the biggest partners with frequent flyer programs.  Since the introduction of the Citi American Airlines AAdvantage credit card more than 20 years ago, consumers have learned how to accrue enough miles for a free trip just by saying "Charge it."  It is expected today that every frequent flier program is associated with a miles-earning credit card.

Outer envelope

Although United and Continental Airlines recently merged, the airlines and their frequent flier programs continue to operate as separate entities.  This means that someone who enjoys the benefit of avoiding the checked baggage fee with their Chase Continental Debit Card would have to pay up if they flew a United flight into Denver.  (In fact, the benefit may not be available soon anyway.  Although the Chase site does not mention it, product information on the Continental Airlines site notes "*The fee waiver for checked bags in conjunction with the Continental Airlines Debit MasterCard will not be valid for travel on or after April 1." and there is a Tweet suggesting the product is no longer offered.)

In the meantime, Elite-level frequent fliers don't know if their perks on Continental or United will be maintained once the programs merge.

Confusing letter

Which brings me to the interesting challenge for Chase Bank, the issuer of Visa and MasterCards for both the United and Continental loyalty programs.  Today, they offer different sets of benefits on their United credit cards compared to their Continental credit cards.  That might lead a consumer to wonder which set of loyalty program credit card benefits will remain when the integration of their rewards program is complete within a year.  So why would someone sign up for a card with a $395 annual fee expecting certain benefits only to learn that they were merely short-term benefits?

The letter here is defensive and incomplete in its attempt to address these concerns.  It adequately communicates some of the product's benefits, but fails to suggest that these benefits will be available in the long term.  The opening of the letter assures the reader that "in most ways" the OnePass program will continue as it is today; however it does not affirm that the Presidential Plus program will continue as it is offered today.  That means that this letter could get a Fail for Offer if neither Chase nor Continental/United are aware of future benefits or if they are aware of their intentions to change them by 2012.  Even though it is a credit card solicitation, the letter suggests it is an update on the progress of the merger.  It references "OnePass offers that you will be receiving this year," suggesting that this offer is not the most compelling.  Should the recipient take this offer or wait for a better one?

Insert front cover

The letter also merits a Fail for Creative for several reasons:

• The tone of the letter is defensive.
• It is not easy for a reader to scan the contents or message.
• The offer touted on the envelope is buried.  It turns out that the complementary Presidents Club membership is available by being a Cardmember during the year that the annual fee is waived.  However, discovering that important fact requires reading the body copy in the fourth paragraph then doing the math. 
• The body of the letter does not open with specific consumer benefits.  The fact that United/Continental is excited about the merger has no value to a consumer.  In fact, it can suggest negative value, because the letter does not address the company's motivation for excitement.
• The tone is too formal and dry for a consumer communication.  For example, there is a heavy use of passive verbs such as "...you will be receiving this year" when a dynamic communicator would write "...you will receive this year".  Perhaps Chase attempted to use a business to business communications style because most frequent travelers are business people.  However Chase/United/Continental forgot that business travelers are also consumers.  They read memos at work, not at home.
• There is a typo in the 2nd paragraph.  The letter states that the programs "...will hen merge into a single program in 2012."  Hens lay eggs.  I believe they meant "...will then merge..."  Of course, a more dynamic letter would read "...and then will merge..." or even "...and then merge into a single program in 2012."

Lessons:

1. Your customer communications should be clear, concise, and simple.  
2. Communicate your key benefits simply and reinforce them.  
3. Avoid passive verbs.  
4. Use an independent proofreader to catch typos.