For the exclusive use of L. Monty, 2021.
9 -5 1 8 -0 2 4
REV: NOVEMBER 26, 2018
SHELLE SANTANA
JILL AVERY
CHRISTINE SNIVELY
Chase Sapphire: Creating a Millennial Cult Brand
One morning in July 2017, Pam Codispoti (HBS MBA ‘93), President of Chase Branded Cards, and
Eileen Serra, Senior Advisor and former CEO of Chase Card Services for JPMorgan Chase, shook their
heads in astonishment. They had launched the Chase Sapphire Reserve Card in August 2016, and the
card exceeded its 12-month sales target in two weeks. Half of the new customers were under 35 years
old, building on the strong millennial cohort that was initially attracted to the Sapphire brand. These
millennial consumers were proudly posting photos of their new Chase Sapphire Reserve cards on
social media. Some were uploading “unboxing” videos on YouTube when they received their Reserve
card. #SapphireReserve was trending on Twitter. One customer, initially denied the card because she
had opened too many new credit card accounts, wore a handmade Chase Sapphire Reserve costume
for Halloween in a social media-fueled attempt to persuade the company to approve her application.
The product’s pièce de résistance that drove social media and word of mouth surrounding the
launch was its 100,000-point sign-on bonus. The size of the bonus was unprecedented for Chase, and
had garnered the attention of prominent bloggers and affiliates such as Brian Kelly, aka The Points
Guy, who declared the Chase Sapphire Reserve “the must-have card of 2016, if not the most appealing
card ever.” 1 It also captured the attention of competitors, who saw it as a shot across the bow in the
arms race of reward programs.
While Codispoti and Serra were pleased with the progress to date, they knew that their hard work had
just begun. As planned, the company had reduced the introductory 100,000-point bonus to 50,000 points in
January 2017. Now they had to ensure that the flood of new customers became profitable to the firm.
As the company approached the one-year anniversary of the Reserve launch, Codispoti and Serra
wondered how many of their enthusiastic consumers would remain with the brand, renew their cards
for another year, and pay the $450 annual fee now that their promotional inducement was gone. They
had to assess how the drop to 50,000 bonus points would impact the rate of new customer acquisition—
particularly given the enhanced richness of American Express’s and Citi’s rewards programs—and to
design new features and benefits for the Chase Sapphire Reserve card to maintain its competitive
differentiation. They also wanted to return their attention to the broader Sapphire portfolio, which
included two other products—Sapphire and Sapphire Preferred. How should the products be
differentiated to ensure they did not cannibalize each other? Were there other new products that could
address the needs of new customer segments to capitalize on the momentum of the Reserve launch?
Professor Shelle Santana, Senior Lecturer Jill Avery, and Case Researcher Christine Snively (Case Research & Writing Group) prepared this case.
It was reviewed and approved before publication by a company designate. Funding for the development of this case was provided by Harvard
Business School and not by the company. Shelle Santana is a former employee of American Express. HBS cases are developed solely as the basis
for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective
management.
Copyright © 2017, 2018 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-5457685, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu. This publication may not be digitized,
photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
518-024
Chase Sapphire: Creating a Millennial Cult Brand
JPMorgan Chase: Consumer and Community Banking
JPMorgan Chase operated four lines of business: Commercial Banking, Corporate & Investment
Bank, Asset & Wealth Management, and Consumer & Community Banking (CCB). Under the
leadership of CEO Gordon Smith, the CCB division served as the face of the company to the general
public. In addition to credit cards, CCB also included merchant acquiring, payment processing, small
business and consumer banking services (including Chase’s 5,200 retail bank branches), mortgages,
and auto financing.
In 2016, CCB counted nearly half of all U.S. households as customers and generated $44.9 billion in
revenue, with net income of $9.7 billion. Chase was ranked #1 or #2 in credit card issuance, credit and
debit payments volume, and merchant acquisitions. It boasted the highest-rated mobile banking app
and the largest ATM network (with 18,000 locations), and was the most visited banking portal. Over
50% of affluent U.S. households lived within two miles of a Chase branch or ATM.
The U.S. Consumer Credit Card Market
There were five primary players in the credit card industry. Issuers were banks that issued credit
cards to consumers and businesses, extended loans in the form of credit lines, and absorbed the
resulting credit risk. Cardholders repaid charges made on their cards, often in monthly installments,
paying interest on the unpaid portion. Merchant Acquirers signed up and managed relationships with
Merchants so that merchants could accept credit cards as a form of payment. Network Providers (e.g.,
MasterCard and Visa) processed payments between consumers and merchants. Under the “open-loop”
system operated by MasterCard and Visa, an issuer, such as JPMorgan Chase, marketed and issued
cards to consumers and businesses, MasterCard or Visa processed the transactions, and a merchant
acquirer enrolled merchants to accept issuers’ cards running on the network provider’s system. 2 In
contrast, American Express (Amex) and Discover served as their own network providers and merchant
acquirers in a “closed-loop” system. Each of the partners received a small percentage of the value of
each customer’s purchase (i.e., “transaction”). (See Exhibit 1 for a summary.)
In 2016, the U.S. general purpose credit card industry sales totaled ~$3 trillion. 3 In Q4 2016, the
market was dominated by six issuers that accounted for 78% of industry sales. JPMorgan Chase led in
market share (21.7%), followed by Amex (19.9%), Citigroup (11.5%), Capital One (11.0%), Bank of
America (8.9%), and Discover (4.7%). 4 The industry experienced 1.1% annual revenue growth between
2011 and 2016, and was expected to grow 4.5% annually between 2016 and 2021. 5 Industry profit
margins had dropped from 31% in 2011 to 25% in 2016 due to lower interest rates, increased
competition, greater regulation, and security/technology costs. 6 Customer acquisition in the industry
was competitive and expensive. Costs to acquire a new cardholder ranged from $250 to $500. 7
American consumers held 636 million credit cards 8 and 38% of households carried credit card
revolving debt, which averaged roughly $11,000. 9 On average, people carried 2.35 credit cards in their
wallets (14% held seven or more cards) 10 but generally only used one on a regular basis. Thus, issuers
strove to make their cards the preferred choice, or “top of wallet.” Generally speaking, Amex network
cardholders charged $1,687 per month on their cards, while Visa cardholders charged $843. 11
Issuers had three main sources of revenue: cardholder fees, interest paid by consumers on unpaid
card balances, and interchange fees, which were paid by merchants as a percentage of each transaction
amount. The contribution of each revenue source varied greatly from one issuer to another. For
example, Amex, which required its charge card customers to pay all purchases in full each month,
earned 21% of its revenue from interest payments and 79% from cardholder and interchange fees, 12
2
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
Chase Sapphire: Creating a Millennial Cult Brand
518-024
while JPMorgan Chase earned an estimated 70% of its revenue from interest payments and 30% from
cardholder and interchange fees. 13 Across the industry, about 30% of all customers were transactors
(those who paid their balances off in full each month to avoid paying interest fees), 43% were revolvers
(those who did not pay off their balances in full each month), and 28% were dormant (those who carried,
but did not use their cards frequently). 14
Market Segmentation
Issuers segmented the market in different ways in order to identify different types of consumers.
Common segmentation strategies included demographic, behavioral, and psychographic methods.
Demographic segmentation separated consumers based on their life stage, assets, or credit score.
•
Life Stage: Young adults (ages 18–26) accounted for 15% of industry revenue. 15 The 26–60 age
group accounted for 59% and tended to be more loyal. 16 Senior citizens accounted for 15%, and
the remainder (11%) was derived from business accounts. 17
•
Assets/Credit: The wealthy segment consisted of households with $500,000 to $1 million in assets,
the affluent segment $100,000 to $500,000, and the emerging affluent segment consisted of those
not yet affluent, but likely to be so within five to ten years. 18 Affluent and wealthy consumers
preferred to put most of their spending on credit cards and were a little less likely to carry
revolving debt than the average consumer.
Behavioral/attitudinal segmentation provided insight into how consumers used their cards and
how much they valued rewards and/or what types of rewards they preferred (cash back, miles, points),
as well as their channel preferences. For example:
•
Annual Fee: While most consumers did not pay an annual fee for credit cards, some issuers
offered cards with annual fees of $25–$550 to attract consumers that valued rich rewards and
benefits.
•
Rewards: Rewards were one of the key features consumers considered when selecting and using
a credit card. There were currently three types of rewards cards in the market:
-
Cash Back on Purchases: Cards that offered cash back attracted consumers who didn’t want
to spend time planning for and redeeming reward points. Some products offered higher
percentages of cash back on spending in particular categories.
-
Proprietary Rewards on Purchases: Issuers offered rewards in the form of points
accumulated based on spending; point multiples varied for different categories of
purchases. Points could be redeemed for travel benefits, merchandise, or other perks.
-
Cobranded Rewards on Purchases: Issuers partnered with particular hotels, airlines,
retailers, and other merchants to offer cobranded cards that offered rewards affiliated with
that partner. Points earned would typically be transferred to the cobrand partner’s loyalty
program. These cards carried both the partner and the issuer brands.
Recently, some issuers had increased their level of rewards and cobrand partner remuneration
to a point where the costs of the rewards were approaching the interchange fee the issuer earned
on the purchase.
3
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
518-024
Chase Sapphire: Creating a Millennial Cult Brand
•
Interest Rates or APR: Low interest rates appealed to consumers who wanted the option to
extend payment on card purchases over time. Average interest rates varied by card type and
could range from 12.88% to over 20%. 19
•
Credit Lines: Some heavy spenders were drawn to cards with high credit lines that allowed them
to access credit for big-ticket purchases in categories such as travel and home improvement.
•
Creditworthiness: Consumers with low credit scores were attracted to cards that offered a high
likelihood of approval. These cards often carried higher interest rates and/or annual fees to
compensate for the higher level of risk the issuer incurred.
A segmentation approach based on consumer psychographics offered yet another way to group
consumers. McKinsey & Company identified five prominent segments based on consumers’ beliefs
about and attitudes toward credit (see Exhibit 2 for segment descriptions and Exhibit 3 for how
consumer behavior differed by card type). 20
A New Strategy for Chase Consumer Credit Cards
In 2006, despite the size and profitability of Chase Card Services, JPMorgan Chase CEO James
“Jamie” Dimon (HBS MBA ’82) believed that more should be done to strengthen Chase’s proprietary
products and to build a stronger presence for the company in the affluent market. In 2007, he hired
Gordon Smith from Amex to become the CEO of Chase Card Services. Smith and Serra, who had also
recently joined Chase, created a new strategy that rationalized the company’s product portfolio and
identified the need to create new Chase proprietary products to compete in the affluent market.
Serra launched a substantial market research project. “It was clear we needed to deeply understand
the various segments in the market, what features were attractive to those segments, and what kinds
of products we wanted to build for those segments,” she explained. The research confirmed the
attractiveness of the affluent/high net worth (AFF/HNW) customer segment. According to company
research, this group represented ~15% of the ~200 million U.S. cardholders, generating ~50% of total
spending on credit cards, of which Chase was capturing ~15% market share. Sixty percent of
AFF/HNW individuals lived in the top 15 markets in the U.S. that were well-served by Chase branches.
Competition in the affluent space was formidable. Travel cobranded credit card products, such as
those for United and Delta Air Lines, had always been strong in the affluent market, but competition
for proprietary issuer cards had been dominated by Amex. In 1984, Amex had introduced its Platinum
Card, initially available by invitation only, with a $250 annual fee. It offered 24-hour customer service,
access to exclusive clubs, and special amenities at high-end hotels, resorts, and restaurants around the
world. 21 In 2007, Amex increased the annual fee to $450, but its extensive slate of rewards and perks
allowed savvy users to recoup most of this cost. 22 The Platinum Card’s value proposition included
exclusivity, rewards, and access. Amex referred to its customers as “card members,” and all cards were
embossed with a “member since” date, which for many served as a badge of honor that marked the
arrival of financial success and stability. “For more than 30 years American Express has reaped
enormous profits by telling its customers that they are successful, elite, the cream of the moneyed crop
and . . . that there’s no better way to make certain everyone knows just how special you are than by
pulling an Amex out of your wallet,” explained the New York Times. 23 However, after reviewing
consumer insights from her research, Serra questioned just how relevant the Amex brand was to the
younger, emerging affluent consumer. She felt confident that Chase could compete for these affluent
consumers with the right product and positioning.
4
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
Chase Sapphire: Creating a Millennial Cult Brand
518-024
Chase Sapphire: A New Sub-Brand Is Born
In 2009, JPMorgan Chase consolidated its Chase proprietary card portfolio into five primary subbrands to address distinct market segments: JPMorgan (for private banking customers), Chase
Sapphire (for affluent consumers interested in travel and dining), Chase Ink (for small business
owners), Chase Freedom (for those consumers interested in cash back), and Chase Slate (for consumers
interested in building financial responsibility). The Chase brand was used on all products as an
endorser brand, which gave consumers a sense of trust, credibility, and security, according to Chief
Brand Officer Susan Canavari, while each of the sub-brands carried its own unique meaning. Serra
recounted the discussion: “There were people who felt that all of our products should just be called
‘Chase.’ That just didn’t make sense to me. The market is highly segmented. Sub-branding allows you
to speak directly to each target segment. I think it strengthens the Chase brand, broadening it and
making it more relevant to more segments of consumers.”
In August 2009, Chase launched Chase Sapphire, its first Chase proprietary card marketed to the
affluent consumer. A company statement articulated the value proposition of this new offering: For
today’s savvy affluent consumer, Chase Sapphire is the new, next generation rewards card that combines the
premium service and travel benefits high-end consumers expect with practical features, so that they can always
get more of what matters most. To enter the market, the team decided to offer a card with no annual fee.
Consumers earned 1 point per dollar on general spend and 2 points per dollar on airline travel booked
through Chase. Customers also received 10,000 bonus reward points after they spent $500 on the card
during the first three months.
To support all Chase proprietary products, including Sapphire, Chase launched Ultimate Rewards,
a proprietary rewards program with a simple and transparent online portal where customers could
manage their rewards, offers, and redemptions. It included a user-friendly landing page containing all
of the information that a customer might need: point tracking, progress toward program goals, and
redemption options with point conversions listed so that customers could easily see the value of their
points. It was a clear differentiator, according to Canavari. “Over the course of time, if you use the
product, you will fall in love with it. It’s not like other cards that offer you things and when you try to
use them, you can’t actually redeem them. When you go to redeem your points with us, you’re going
to be able to redeem them for great value at really great places.” Lisa Walker, General Manager of
Chase Sapphire Branded Cards, added, “Consumers believe that we deliver significant value and they
like the elevated experiences and the simple nature of our rewards program. It is easy to understand
and easy to redeem: no gotchas, rewards are automatically credited to your account. You don’t have to
do anything.” (See Exhibit 4 for images of the Ultimate Rewards website.)
All Chase Sapphire calls were answered by a live advisor. As Walker noted, “You don’t have to
push any buttons. You don’t have to enter your credit card number. You simply call the number on the
back of your card and someone answers the phone and says, ‘Thank you for calling Chase Sapphire.
How can I help you?’ That is unique today in the credit card industry.” Chase staffed the lines with
experienced, high-performing representatives to improve customer satisfaction. The teams had a goal
of answering 85% of calls within 20 seconds and resolving customer issues within one call. “It’s
certainly a more expensive way of servicing our customers . . . but there is a clear connection between
the service experience improvements, net promotor score improvements, and customer retention,” said
Tom Horne, Head of Credit Card Operations. “The savings you get from pulling back on your service
levels to save a few dollars is not worth the risk of lower customer satisfaction, which always leads to
higher attrition.” He continued, “Direct-to-advisor is attractive to many customers. These customers
are very busy, and so their immediate reaction is ‘I’m going to get a quick answer to my question.’”
5
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
518-024
Chase Sapphire: Creating a Millennial Cult Brand
The card had a minimalist design (see Figure 1), differentiating it from competitors’ cards, which
were filled with numbers and graphics.
Figure 1
Source:
Chase Sapphire Credit Card
Company documents.
The market response was promising. A customer survey at the end of 2009 revealed that 90% of
cardholders reported overall satisfaction with the card, and 85% would recommend it to others. 24
Expanding the Product Portfolio with Chase Sapphire Preferred
By 2011, the economy was showing signs of recovery. Although Sapphire had generated consumer
excitement and was performing well, Serra was anxious to make stronger inroads into the AFF/HNW
segment. The team decided to leverage the Chase Sapphire sub-brand and launched the Chase
Sapphire Preferred card. It carried an annual fee of $95 and offered cardholders 50,000 points after they
spent $4,000 during the first three months. The card also provided a 1.25% points-to-dollar conversion
rate toward travel if points were redeemed on the Ultimate Rewards website (for example, when 50,000
points were redeemed, consumers would receive $625 in value against their travel purchases).
Cardholders could earn 2x points on travel and dining, and received a 1:1 point transfer to frequent
flier programs, such as United Mileage Plus. Preferred customers also had access to exclusive, curated
Chase Experiences such as exclusive packages to the Sundance Film Festival, private dining series at
acclaimed restaurants, and access to the Sapphire Lounge at New York City’s Madison Square Garden,
where customers could meet athletes and talent before games and shows.
One of the card’s defining characteristics was its weight. Unlike molded plastic cards, Chase
Sapphire Preferred had a metal core sandwiched between two pieces of plastic, giving it more heft.
While a standard plastic card generally cost $1 to produce, this card cost significantly more. However,
the team felt that the satisfying “thunk” it made as a consumer put it down for payment was an
important quality signal. Remarked Walker, “When I look at my P&L, that’s a pretty big cost of goods
number. But it has an intangible value. When I take my Chase Sapphire Preferred card out of my wallet
and hand it to someone in a store, they make a comment about it. It isn’t showy, but it is a conversation
piece.” A NerdWallet writer explained, “I have the Chase Sapphire Preferred, and virtually nothing
gives me more pleasure when I pay and the cashier notices how gorgeous that card is. Chase has
basically realized that the weight raises customers’ dopamine levels. Being able to get into my brain
every single time I swipe a card—there’s literally nothing better a marketer could want.” 25 A consumer
noted, “They’ve managed to take something from being a stupid card you carry in your wallet to a part
of your identity.” 26
6
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
Chase Sapphire: Creating a Millennial Cult Brand
518-024
In 2014, Chase stopped actively acquiring customers and began throttling back marketing efforts
on the no-fee product, focusing marketing on the Sapphire Preferred product instead. Some no-fee
consumers migrated to Preferred, but others stayed with the no-fee card, moved to one of Chase’s other
sub-branded cards, or left the company.
By 2016, Sapphire Preferred represented more than half of Sapphire total accounts and sales. The
Sapphire Preferred card had also won several awards. Consumers were enthusiastic about the brand
and eager to share it with their tribe. Said Canavari, “When you are passionate about something, you
want to share it with your community and with like-minded people because that’s what makes you
really proud to be part of a brand.”
By 2014, Citi had also entered the premium credit card segment with its Citi Prestige card. The
Prestige card, marketed primarily to travelers, carried a $450 annual fee and access to Priority Pass
airport lounges. 27 Cardholders received an annual $250 air travel credit, automatically applied to flightrelated expenses. They also received a free fourth night at a hotel in the form of a statement credit when
booked through the Citi Prestige Concierge, 28 a sign-up bonus of 50,000 ThankYou points after
spending $5,000 within three months of being issued the card, and three points per dollar spent on air
travel and hotels, two points per dollar on dining and entertainment, and 1 point per dollar spent on
other purchases. 29
The Launch of the Chase Sapphire Reserve Card
Codispoti joined Chase in 2014, after more than 18 years at Amex. She quickly noticed that Sapphire
Preferred customers were more affluent than the rest of Chase’s proprietary portfolio, and included a
segment of “new affluents” that were 25–44 years old with incomes of $150,000+. They were authentic
travelers and savvy about rewards, and they liked to make the most of every trip, whether it was
around the corner or across the globe. The team believed there was an opportunity to build on the
momentum and brand equity of Sapphire to create a line extension to compete in the ultra-premium,
high-fee segment.
Product Design Strategy
Codispoti explained, “Launching a new credit card product is a complex series of trade-offs. We
have to construct a value proposition comprised of the optimal mix of rewards, benefits, services,
experience, interest rates, annual fees, and more. Throughout the new product development process
we are constantly doing analysis to determine which set of features will deliver the most value for
consumers, provide clear differentiation from competition, and yield the best returns for our
company.”
Since the new offering would carry the Chase Sapphire brand, it needed to reflect the brand’s DNA:
strong rewards, premium travel redemptions, and exceptional customer service. In addition, not only
did it need to differentiate itself from other ultra-premium cards in the market, it also needed to be
distinct from the Chase Sapphire Preferred card to generate incremental customers. (Refer to Exhibit 5
for a summary of each Sapphire product’s features.) Codispoti also knew she needed to account for
and overcome two significant industry dynamics in developing a new product: millennial attitudes
toward credit cards and churners.
First, by 2013, only 37% of Americans aged 35 and under carried credit card debt, the lowest level
since 1989. 30 Millennials, many of whom carried significant student loan debt, were wary of revolving
credit and tended to use debit cards or pay off their full balance each month. Their spending habits
7
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
518-024
Chase Sapphire: Creating a Millennial Cult Brand
differed from past generations, as they tended to favor collecting experiences instead of things, and
much of their spending occurred in places that were not traditionally included in reward programs.
However, while some had sworn off credit cards, others were attracted by rewards. The Wall Street
Journal noted, “Credit cards, and the prizes they earn, are the hot new collectibles for millennials.” 31
Millennials capitalized on rewards to stretch their finances, hacking the system to maximize the points
they earned and the value at which they redeemed them.
Second, an increasing number of consumers were churning credit card offerings for large personal
gains. This small subset of customers known as “churners” signed up for multiple credit cards to take
advantage of acquisition sign-on bonuses, first-year free offers, or low introductory interest rates and
then canceled the account or allowed the card to sit unused and became part of the dormant segment.
Prominent bloggers offered ingenious methods for consumers to maximize the benefits of their credit
cards. As Codispoti noted, “We work hard to deliver compelling ongoing benefits well beyond the
sign-on bonus so our cards remain top of wallet for the long term.”
The new Chase Sapphire Reserve card was launched in August 2016 and carried a $450 annual fee.
Cardholders earned 3 points per dollar spent on travel and dining, a 1.5% points-to-dollar conversion
rate toward travel on Ultimate Rewards redemptions, a $300 annual travel credit, and access to the
Chase Experiences platform. At launch, Chase Sapphire Reserve offered a market-leading 100,000point sign-on bonus, which was earned after a customer spent $4,000 within their first three months.
The bonus offer alone was worth $1,500 in travel redemption credits on the rewards site.
For Codispoti, what made the Sapphire brand so compelling was that it reflected what young,
successful consumers wanted—a flexible product that allowed them to set their own rules and that
provided convenience, relevance, and choice. “For millennials, ’travel’ might mean a once-in-a-lifetime
trip around the world or it could mean taking a Lyft to a hole-in-the-wall restaurant in Chinatown and
then riding the subway to karaoke, and then catching a taxi home. So we decided to give customers
accelerated rewards on all those purchases. Reserve provided millennials even more of what they loved
about Sapphire. This is a card for accumulating experiences,” she explained. “The emphasis is on what
you can do, rather than what you can buy.” She added, “Our card is for those on a lifelong journey of
exploration, as opposed to a card that serves as a badge of arrival. Our card is meant for people who
want to be viewed as interesting, not rich.”
At launch, the Sapphire team created a new approach for marketing and communications. They
recognized that affluent millennial consumers were consuming media differently, so rather than
investing in traditional television advertising, they turned to media platforms and influencers that
were more pertinent to them. They engaged relevant influencers, who spread the word within their
communities, partnering with model/producer/director Nigel Barker, designer Kelly Wearstler, and
model/TV personality Chrissy Teigen to help generate large-scale reach (see Exhibit 6). The celebrities
shared their Chase Sapphire Reserve experiences through more than 20 unique and highly engaging
pieces of social content delivered to their millions of followers on social media, and hosted a media
event to discuss their unique perspectives on the evolution of travel. Chase blanketed its extensive
branch network with point-of-sale material promoting the product, featured the card on its chase.com
website, and advertised with online video content on sites like VOX media that featured actor and
comedian James Corden interviewing cutting-edge masters of travel and dining in unique venues. Said
Canavari, “I think the way we went to market was really smart. We created this sense that it was
limited, you had to be in the know to get it. We didn’t start with mass advertising . . . We wanted it to
feel a little bit exclusive.”
8
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
Chase Sapphire: Creating a Millennial Cult Brand
518-024
Market Response
In August 2016, The Points Guy wrote, “When I first heard the details of the new Chase Sapphire
Reserve Card, I had to sit down, because it sounded way too good to be true.” 32 Fueled by social media
and online forums, news about the new card spread quickly to “points junkies” eager to apply for the
card and spread the word. Demand skyrocketed, overwhelming Chase’s call centers. Some consumers
called in just to ask if the 100,000-points offer was real. Within 10 days of the launch, Chase ran out of
the special metal alloy required to make the cards. Disappointed customers were sent plastic versions
until their metal cards were ready. The Associated Press commented, “Enthusiasts extol its virtues all
over the Internet. Millennials are clamoring for it. It’s not a new video game, or some fancy food craze,
or even Apple’s latest iPhone, but a credit card. Calling it plastic doesn’t do it justice. It is a high-end,
high-fee, high-reward card made of a metallic alloy that gives it a satisfying heft and an impressive
thunk when you toss it onto the table to pick up the check.” 33
The card reached its annual new customer acquisition goal within the first two weeks of launch.
Codispoti described it as akin to “catching lightning in a bottle,” a once-in-a-lifetime outcome. Serra
agreed, saying, “We didn’t start out to create a cult brand. Our goal was really to understand
consumers and identify where there was emotional space to talk to them.” She added, “One thing we
learned is that you sometimes have to challenge conventional wisdom. Everyone said that millennials
won’t pay a high fee for anything. And then, you realize well, that’s not actually true. They’ll pay for
value.”
While the cost of acquiring an individual customer was as anticipated, the higher-than-expected
take-up rate drove total customer acquisition costs above the team’s projections. Chief Financial Officer
of Card Services Catherine Hogan recalled closely watching the financial implications of the 100,000point offer shortly after the card introduction: “Wow, how do we ride this momentum? The numbers
were big. We designed this to be an ultra-premium card—more of a niche product—but it took off
beyond anybody’s expectations.”
Codispoti explained, “We didn’t expect to drive as much demand as we did. We didn’t plan to have
the 100,000-point offer last as long as it did. But, as things unfolded, we pivoted. We don’t make
investment decisions based on short-term potential. We saw this customer base as attractive for the
long term and so we decided to lean into it . . . as a marketer, you have to be fluid, to give yourself a
little space to expect the unexpected.”
In January 2017, Chase preannounced that the 100,000-point sign-on bonus would be reduced to
50,000 points, effective later that month. The cutoff date was extended to March 2017 for customers
who applied in person in one of Chase’s bank branches. As Codispoti explained, “We kept the 100,000point introductory offer up longer than we originally anticipated to continue to capture the momentum
in the marketplace. And then, like with all promotions or introductory offers, we decided it was time
to bring that premium down.” 34 Consumers appreciated Chase’s transparency, which granted them a
chance to respond before the offer was reduced. Chase’s online application volume surged again and
consumers took long road trips to apply in person at the nearest Chase bank branch, determined to get
the offer before it expired.
From the launch of Sapphire Preferred in 2011 through the Reserve launch in 2016, total Sapphire
new accounts had grown at a double-digit CAGR, with sales growing at an even faster rate during that
same time period.
9
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
518-024
Chase Sapphire: Creating a Millennial Cult Brand
Chase’s Competitors Respond
Chase’s success with the Reserve card was difficult for competitors to ignore. In 2016, Amex
announced a new design for its Platinum Card, a 60,000-point sign-on bonus, and a significant upgrade
in rewards and benefits. The annual fee was increased to $550. This was in addition to a significant
increase in spending on marketing and promotion and card member engagement in 2015 and 2016.
These efforts were bearing fruit; Amex’s new account acquisitions were up 13%, with millennials
accounting for more than 35% of the growth, and the company ended 2016 with a record number of
Platinum Card holders. 35
In July 2017, Citibank announced a number of changes to its Prestige card, including increasing the
sign-on bonus to 75,000 for a limited time after a customer spent $7,500 in the first three months (refer
to Exhibit 7 for a summary of the changes to the Amex Platinum and Citi Prestige cards).
However, Chase seemed to be winning the minds and hearts of millennial consumers. Said Bryan
Denman (35), a Sapphire Reserve customer, “Everyone’s brought up to distrust their credit card
company. I am a complete fanboy [of Reserve]. I’m telling everyone to get this card. When I go to
dinner, there might be three cards that get thrown down. They’re all Chase Sapphire.” 36 When asked
during a focus group which card they would use to pay for dinner, one consumer proclaimed, “I don’t
think it would be American Express . . . I feel like that would be braggy, like I’m trying to prove I’m a
big shot.” 37 A fellow consumer added, “I’d probably use this [the Chase Sapphire Reserve card]. An
Amex says you’re rich, but this says you’re interesting.” 38
Creating Value from Chase Sapphire Reserve Customers
On July 14, 2017, JPMorgan Chase reported its second quarter earnings. In a conference call with
analysts and investors, the management team discussed the current state of the Chase Sapphire Reserve
product. Following record card sales volume growth, the strongest the company had seen in a decade,
JPMorgan Chase was experiencing a dip in its net revenue rate a for Card Services. Responding to an
analyst’s question, Marianne Lake, Chief Financial Officer, remarked:
[The first three quarters from launch] were extraordinary in terms of the number of
accounts we acquired . . . These are extraordinarily good customers, their characteristics,
their engagement, their spend, these are the customers that everybody wants to acquire.
We now have them and we intend to deepen relationships with them . . . It’s still very
early on Sapphire Reserve . . . it’s not even a year old yet and these are portfolios that
develop and season over time. 39
Dimon reminded analysts that JPMorgan Chase played the long game when it came to credit card
marketing. He explained, “You expense the acquisition costs over 12 months. The benefit comes over
seven years. So we make huge investments all the time based on economics.” 40
Managing a rewards program was a delicate balancing act. Lorraine Hansen (HBS MBA ‘91), Head
of Ultimate Rewards, explained, “We strive to provide consumers with superior choice and value while
also managing the economics of the program.” Hansen was optimistic that the rewards were enough
to engender loyalty. She explained, “You want to see how a bundle of rewards and benefits works to
a Net revenue rate represents Card Services net revenue (annualized) expressed as a percentage of average loans for the period.
A significant portion of credit card new account origination costs were recognized as contra revenue, and reduced net revenue
instead of increasing expense.
10
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
Chase Sapphire: Creating a Millennial Cult Brand
518-024
change the net present value of a customer—how they engage with their card in ways that increase
their customer lifetime value.”
As they approached the launch’s one-year anniversary, Codispoti and Serra wondered if the
customers who had flocked to Reserve would be as eager to renew their accounts. Credit card renewal
rates for premium cards were traditionally 60%–90%, 41 but the Reserve card was no ordinary card.
Remarked Codispoti, “Our objective is to build lifelong engaged relationships with our customers. One
of our biggest challenges is churners. They use the points and leave and then go on to another card.”
Serra continued:
Unlike other categories, there are very low barriers to switching credit cards. Someone
can just go online and put two pieces of information in and hit “submit” and get a new
card. You’re always going to have people who are just going to go with the newest shiny
object. What we’re trying to do is create equity around what this brand stands for and
deliver on customer expectations. We want people who are aligned with the brand and
feel that the brand says something about them in terms of who they are and what they
value.
Managing the Chase Sapphire Brand Portfolio Going Forward
Meanwhile, the team considered how to best manage the overall Chase Sapphire portfolio. Which
bundle of features and benefits should each card carry in order to keep customers retained and engaged
with the brand?
Market research showed that the Chase Sapphire brand had many strong brand associations,
including modern, more contemporary, understands me, understands the way I travel, and not my father’s
credit card, and was performing well with affluent consumers (see Exhibit 8). Walker summarized the
research: “Consumers say that Chase Sapphire understands me and supports me in the things I’m
going to do. We are not a finger-wagging brand. We do not say, ‘Let us show you the way.’ Our
customers are doing very interesting and exciting things. They have great life experiences and we have
created products that understand them and support them.” Canavari concurred: “I believe that the
reason people are so loyal to Chase Sapphire is because it is a great product that is true to its brand
positioning. Customers know what to expect from it and it lives up to the way we talk about it. We tell
consumers, ‘We know you’re in the know and it is our mission to go out into the world to understand
what the next cool thing is going to be that you are interested in, and then we’re going to let you in on
the secret and let you take advantage of it with your rewards.’”
As they approached the first anniversary, the team debated how to reinforce the total value of the
product and present more opportunities for customers to engage with the brand. Codispoti’s team was
laser focused on EMOB (early months on book consumers). She explained:
Because most people carry multiple cards, the EMOB period is the most critical time.
If we don’t engage a new customer in the first few months, the customer might just put
the card in their drawer and not use it. We built this portfolio faster than we ever thought
we would, so now we’re hunkering down and doing everything we can to delight our
customers and build a strong affinity to the brand.
Serra also expressed caution about raising the stakes in the rewards arms race:
This is a dynamic industry with strong competitors and savvy consumers. Issuers are
continually fine-tuning their products looking for opportunities to enhance their rewards
11
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
518-024
Chase Sapphire: Creating a Millennial Cult Brand
propositions so that they can gain a competitive edge. As the market leader, at some point
you have to say “enough is enough.” Our goal is to have a brand that people connect with
emotionally and that delivers a great customer experience. This has to be a relationship
that works for both parties.
Going forward, they also had to reevaluate the Chase Sapphire Preferred product to ensure that it
was clearly differentiated from Reserve. Walker explained, “We’re trying to understand how to
optimize between the two big pieces of the portfolio, Preferred and Reserve. How should we jointly
manage the two and guide customers to the best product for them? Reserve is not the right product for
everyone, but with all the hype around the launch, a lot of folks got Reserve who might be better suited
to Preferred.” They also had to decide what to do with the no-fee Chase Sapphire. They considered
whether they should reinvest in it as a way to attract customers who were not willing to pay a fee.
Finally, Codispoti wanted to explore additional product innovations for the Sapphire portfolio. She
explained the strategy: “We want the Sapphire brand to be the wingman of your life. Not a brand that
talks at you, but a brand that is an enabler. A brand that can unlock the life experiences you want and
help you achieve your financial and personal goals. We’re here to help our customers make the most
of their lives. Our brand doesn’t lead them, they lead our brand.”
12
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
Chase Sapphire: Creating a Millennial Cult Brand
Exhibit 1
518-024
The Economics of a Credit Card Transaction
Open-Loop Transaction
Consumer Spend (as an example)
Less Interchange Fee to Issuera
Less Merchant Acquirer Fee
Less Network Provider Fee
Balance Provided to Merchant
Source:
Closed-Loop Transaction
(e.g., Visa/ MasterCard)
(e.g., American Express &
Discover)
$100.00
$1.50
$0.30
$0.20
$98.00
$100.00
$2.45
N/A
N/A
$97.55
Company documents; and casewriter, adapted from “How a Credit Card Transaction Works,” Swisscard AECS,
https://www.swisscard.ch/en/media/the-swiss-card-market/rs-how-they-work/, accessed September 2017.
a Issuers could earn higher interchange fees, up to 2.2% of the consumer spend, on their premium-level cards.
13
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
518-024
Chase Sapphire: Creating a Millennial Cult Brand
Exhibit 2
Credit Card Psychographic Segmentation
Prosperous and Content: High income people with strong credit ratings who pride themselves on
keeping their finances in order, they spend liberally on their credit cards, seek rewards for spending,
and are opposed to revolving debt. They do not spend time thinking about their card and desire
convenience and reliability. They are twice as likely to have a premium card.
Deal Chasers: Highly involved cardholders who confidently manage their usage to obtain the best deals,
moving balances across cards to obtain the most advantageous rates and points. They do not mind
paying an annual fee as they find a way to amortize the cost through rewards. They are satisfied with
their cards, but see themselves in friendly competition with issuers. They carry more debt than the
prosperous and content, but feel confident that they can service it.
Financially Stressed: These cardholders carry high levels of card debt and feel pessimistic about whether
they will ever get their finances in order. They are worried about the economy and their situation, and
feel stuck with their current issuers, unable to shop around for a better deal due to their poor FICO
scores. The segment includes both those with a need to use credit cards to pay for essentials and those
who do not have control over their spending and thus spend more than they can handle. They value
simplicity and transparency in fees, rates, and terms, and wish that they did not need to rely so much
on their credit cards.
Recovering Credit Users: These cardholders are wary of issuers and avoid regularly using credit cards.
They are careful to keep their finances in order and are rarely swayed by promotional offers, perceiving
them to be traps to attract unsuspecting consumers. Active and conscientious, they want tools to help
control spending, but blame issuers, not themselves when debt piles up.
Self-Aware Avoiders: These consumers feel that credit cards are risky, given their spending habits. They
avoid using credit and rely on cash and debit cards that pull directly from their bank accounts to curb
their spending. Purchasing on a credit card makes them feel out of control. They blame themselves, not
issuers, when they get into trouble with their credit cards.
Source:
“New Frontiers in Credit Card Segmentation: Tapping Unmet Consumer Needs,” May 2014, McKinsey & Company,
www.mckinsey.com. Copyright (c) 2017 McKinsey & Company. All rights reserved. Reprinted by permission,
accessed June 2017.
14
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
Chase Sapphire: Creating a Millennial Cult Brand
Exhibit 3
518-024
Consumer Behavior by Type of Credit Card
15
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
518-024
Chase Sapphire: Creating a Millennial Cult Brand
Exhibit 3 (continued)
Source:
“The Wallet Wars,” Compete, http://www.compete.com, via Catherine Prince, “Card Programs that Attract Multiple
Consumer Segments,” FIS, July 30, 2013, https://www.aba.com/Products/Endorsed/Documents/FIS_July2013.pdf,
accessed August 2017.
16
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
Chase Sapphire: Creating a Millennial Cult Brand
Exhibit 4
518-024
Chase Sapphire Ultimate Rewards Screen Shots
Flight Purchase:
Source:
Company documents.
17
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
518-024
Chase Sapphire: Creating a Millennial Cult Brand
Exhibit 5
Chase Sapphire Product Portfolio
Annual Fee
Sapphire
Sapphire Preferred
Sapphire Reserve
$0
$0 first year, then $95
$450
15.24%-15.99%
16.99%–23.99%
16.99%–23.99%
$500
$4,000
$4,000
10,000
50,000
50,000
$0
$0
Up to $300 annually
for most travel
expenses
Airfare and Hotels
2x
2x
3x
Dining
2x
2x
3x
Entertainment
1x
1x
1x
Everyday Spend
1x
1x
1x
Airline Tickets
1
1.25
1.5
Hotel
1
1.25
1.5
N/A
2.1
2.1
Airline Perks
None
None
None
Hotel Perks
None
None
Hotel Elite Status
None
None
Luxury Hotel & Resort
Collection
None
Global Entry/TSA PreCheck
Credit
Car Rental Elite Status
None
None
1 credit every 4 years
None
None
Privileges at Avis,
National, and
Silvercar
Trip cancellation/
interruption insurance
Trip cancellation/
interruption insurance
PriorityPass Select
airport lounge access;
trip cancellation/
interruption insurance
Chase Experiences
APR %
Bonus Requirementa
Ultimate Rewards Sign-Up Bonus
Travel Credits
Points Earned by Category
Redemption Value per Point for
TPG
Valuationsb (in
cents)
Additional Perks
Additional Perks
Chase Experiences
Source:
Compiled from company documents; and “Points Valuations,” The Points Guy, https://thepointsguy.com/category/
points-valuations/, accessed August 2017.
a Sign-Up Bonus is the amount of spending necessary within three months to receive extra reward points.
b The Points Guy valuation states the value of that card’s point per cent(s).
18
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
Chase Sapphire: Creating a Millennial Cult Brand
Exhibit 6
518-024
Chase Sapphire Reserve Celebrity Influencers
“Reserve What’s Next” Web Series with Comedian and TV Host James Corden
Source:
Company documents; and Twitter screen shots,
https://twitter.com/chrissyteigen/status/777987476887437312?lang=en,
https://twitter.com/chrissyteigen/status/781599161284108288?lang=en, accessed August 2017.
19
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
518-024
Exhibit 7
-20-
Premium Credit Card Competitive Product Comparison
Annual Fee
APR %
Chase Sapphire Reserve
Amex Platinum
(prior to Reserve launch)
Amex Platinum
(after Reserve launch)
Citi Prestige
(prior to Reserve launch)
Citi Prestige
(after Reserve launch)
$450
$450
$550
$450
$450
16.99%–23.99%
N/A
N/A
16.24%-24.74%
16.74%-24.74%
$4,000
$3,000
$5,000
$2,000
$5,000
100,000 (50,000 from Jan
2017)
40,000
60,000
30,000
50,000
$300 for most travel
expenses
$200 for select airlines
$200 for select airlines;
$200 in Uber rides
$250 for airline purchases;
free fourth night in hotels
$250 for airline purchases;
fourth night stay credited
for avg. nightly rate
Airfare and Hotels
3x
1x
5x 2
3x
3x
Bonus Requirement
Sign-Up Bonus
Travel Credits
Points Earned by
Category
Dining
3x
1x
1x
2x
2x
Entertainment
1x
1x
1x
2x
2x
Everyday Spend
1x
1x
1x
1x
1x
1.25
Redemption Value per
Point for
Airline Tickets
1.5
1
1
1.6 (AA), 1.33
Hotel
1.5
0.7
0.75
1
1
TPG Valuation (in cents) a
2.1
1.9
1.9
1.6
1.6
Additional Perks
Hotel Perks/Status
Global Entry/
Lux. Hotel/Resort Collection
Starwood Gold Status
Starwood Gold Status
None
None
1 credit every 4 years
TSA PreCheck or Global
Entry statement credit
TSA PreCheck or Global
Entry statement credit
Global Entry ($100)
statement credit
Global Entry ($100)
statement credit
Avis, National, and
Silvercar
Avis, Hertz, and National
Avis, Hertz, and National
None
None
PriorityPass
PriorityPass; Delta Sky
Clubs
PriorityPass; Delta Sky
Clubs; Escape Lounges;
Centurion
PriorityPass Select;
Admirals Club
PriorityPass Select
PreCheck
Car Rental Status
Lounge Access
Source:
Company documents.
a The Points Guy valuation states the value of that card’s point per cent(s).
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
518-024
Exhibit 8
Source:
Chase Sapphire Brand Performance
Company documents.
This document is authorized for use only by London Monty in 2021.
-21-
For the exclusive use of L. Monty, 2021.
518-024
Chase Sapphire: Creating a Millennial Cult Brand
Endnotes
1 “Chase Sapphire Reserve Review and Application Link,” The Points Guy, August 22, 2016,
https://thepointsguy.com/2016/08/chase-sapphire-reserve-100k-review/, accessed August 2017.
2 “What are three and four party card schemes?” Brimstone Consulting, http://www.brimstone-consulting.com/three-and-
four-party-card-schemes, accessed July 2017.
3 The Nilson Report, February 2017, Issue No. 1104, https://www.nilsonreport.com/upload/issues/1104_3267.pdf, accessed
September 2017.
4 Consumer and Community Banking, JPMorgan Chase & Co, February 28, 2017, https://www.jpmorganchase.com/
corporate/investor-relations/document/ccb_investor_day_2017.pdf, accessed September 2017.
5 Evan Hoffman, “Credit Card Issuing in the U.S.,” October 2016, IBISWorld, accessed June 2016.
6 Hoffman, “Credit Card Issuing in the U.S.”
7 Adam Tanner, “Why Banks Don’t Stop Savvy Travelers Who Flip Credit Cards,” Forbes, August 6, 2014,
https://www.forbes.com/sites/adamtanner/2014/08/06/why-banks-dont-stop-savvy-travelers-who-flip-creditcards/#3e37998b5a52, accessed August 2017.
8 Alina Comoreanu, “Number of Credit Cards and Credit Card Holders,” Wallethub, March 9, 2017,
https://wallethub.com/edu/number-of-credit-cards/25532/, accessed July 2017.
9 “Average Credit Card Debt in America: 2016 Facts & Figures,” Value Penguin, https://www.valuepenguin.com/average-
credit-card-debt, accessed July 2017.
10 Comoreanu, “Number of Credit Cards and Credit Card Holders.”
11 Elena Holodny, “Here’s How Much the Average Amex, Visa, MasterCard, and Discover Owners Spend per Month,”
Business Insider, September 15, 2015, http://www.businessinsider.com/amex-visa-mastercard-and-discover-card-ownersspend-per-month-2015-9, accessed August 2017.
12 Isaac Tang, “American Express Has Lost Its Steam of Growth,” Seeking Alpha, May 9, 2017,
https://seekingalpha.com/article/4071311-american-express-lost-steam-growth, accessed August 2017.
13 “Equity Research on U.S. Credit Cards,” Instinet, LLC analyst report, February 10, 2017, accessed August 2017.
14 “Credit Card Market Monitor,” American Bankers Association, November 2016,
https://www.aba.com/Press/Documents/2016Q2CreditCardMonitor.pdf, accessed August 2017.
15 Hoffman, “Credit Card Issuing in the U.S.”
16 Hoffman, “Credit Card Issuing in the U.S.”
17 Hoffman, “Credit Card Issuing in the U.S.”
18 Catherine Prince, “Card Programs that Attract Multiple Consumer Segments,” FIS, July 30, 2013,
https://www.aba.com/Products/Endorsed/Documents/FIS_July2013.pdf, accessed July 2017.
19 Kelly Dilworth, “Rate survey: Average card APR remains at record 16.06 percent for second week,” CreditCards.com, July
17, 2017, http://www.creditcards.com/credit-card-news/interest-rate-report-71217-unchanged-2121.php, accessed August
2017.
20 Luke Fiorio, Robert Mau, Jonathan Steitz, and Thomas Welander, “New Frontiers in Credit Card Segmentation: Tapping
Unmet Consumer Needs,” McKinsey & Co., accessed July 2017.
21 “The Platinum Card ® From American Express Celebrates Its 20th Anniversary,” July 21, 2004,
http://www.prnewswire.com/news-releases/the-platinum-cardr-from-american-express-celebrates-its-20th-anniversary71350477.html, accessed June 2017.
22 “American Express Platinum Card® Packs on the Perks for International Travelers,” American Press Release, April 5, 2011,
http://about.americanexpress.com/news/pr/2011/pct.aspx, accessed June 2017.
22
This document is authorized for use only by London Monty in 2021.
For the exclusive use of L. Monty, 2021.
Chase Sapphire: Creating a Millennial Cult Brand
518-024
23 Charles Duhigg, “Amex, Challenged by Chase, is Losing the Snob War,” New York Times, April 14, 2017,
https://www.nytimes.com/2017/04/14/business/american-express-chase-sapphire-reserve.html?_r=0, accessed June 2017.
24 JPMorgan Chase & Co. Investor Day, February 25, 2010,
https://www.sec.gov/Archives/edgar/data/19617/000119312510042421/dex991.htm, accessed July 2017.
25 Sam Grobart, “How Chase Made the Perfect High for Credit Card Junkies,” Bloomberg Businessweek, September 22, 2016,
https://www.bloomberg.com/news/features/2016-09-22/how-chase-made-the-perfect-high-for-credit-card-junkies, accessed
June 2017.
26 Grobart, “How Chase Made the Perfect High for Credit Card Junkies.”
27 Brian Kelly, “The Credit Card That Gets You a Free Night at Any Hotel,” Travel & Leisure,
http://www.travelandleisure.com/hotels-resorts/citi-prestige-card-free-hotel-nights, accessed July 2017.
28 J.T. Genter, “Less Than Three Months to Maximize Your Citi Prestige Benefits,” The Points Guy, May 3, 2017,
https://thepointsguy.com/2017/05/maximize-citi-prestige-benefits/, accessed July 2017.
29 “Earn 40,000 bonus points after making $4,000 in purchases within the first 3 months of account opening,” Citi Credit Cards,
https://www.citi.com/credit-cards/credit-card-details/citi.action?ID=citi-prestige-card, accessed July 2017.
30 Nathaniel Popper, “How Millennials Became Spooked by Credit Cards,” New York Times, August 14, 2016,
https://www.nytimes.com/2016/08/15/business/dealbook/why-millennials-are-in-no-hurry-to-take-on-debt.html?_r=0,
accessed August 2017.
31 Rob Copeland, “If You Have 29 Credit Cards, You’re Probably a Millennial,” Wall Street Journal, March 31, 2017,
https://www.wsj.com/articles/if-you-have-29-credit-cards-youre-probably-a-millennial-1490972634, accessed April, 2017.
32 “Chase Sapphire Reserve Review and Application Link,” The Points Guy, August 22, 2016,
https://thepointsguy.com/2016/08/chase-sapphire-reserve-100k-review/, accessed July 2017.
33 Ken Sweet, for the Associated Press, “Chase Sapphire Reserve: The Metal Credit Card Everyone’s Clamoring For,” Mercury
News, September 8, 2016, http://www.mercurynews.com/2016/09/08/chase-sapphire-reserve-the-metal-credit-cardeveryones-clamoring-for/, accessed June 2017.
34 Zach Honig, “Last Chance for Chase Sapphire Reserve 100,000-Point Online Bonus,” The Points Guy, January 6, 2017,
https://thepointsguy.com/2017/01/chase-sapphire-reserve-100k-online-bonus-ending/, accessed July 2017.
35 Ken Sweet, “Facing new competition, AmEx polishes up the Platinum Card,” Business Insider, March 2, 2017,
http://www.businessinsider.com/ap-facing-new-competition-amex-polishes-up-the-platinum-card-2017-3, accessed July
2017.
36 Grobart, “How Chase Made the Perfect High for Credit Card Junkies.”
37 Duhigg, “Amex, Challenged by Chase, Is Losing the Snob War.”
38 Duhigg, “Amex, Challenged by Chase, Is Losing the Snob War.”
39 “JPMorgan Chase Q2 2017 Results - Earnings Call Transcript,” Seeking Alpha, July 14, 2017, https://seekingalpha.com/
article/4087810-jpmorgan-chases-jpm-ceo-jamie-dimon-q2-2017-results-earnings-call-transcript, accessed September 2017.
40 “JPMorgan Chase Q2 2017 Results - Earnings Call Transcript,” Seeking Alpha.
41 Emily Glazer, “Sapphire Reserve Card Loses Luster,” Wall Street Journal, July 29, 2017, https://www.wsj.com/
articles/sapphire-reserve-cards-arent-very-rewarding-for-j-p-morgan-1501239601?mod=e2fb, accessed July 2017.
23
This document is authorized for use only by London Monty in 2021.
Purchase answer to see full
attachment