It is important to remember that the credit card's promotional strategies must work within the context of the overall brand strategy for Virgin.
Overall, the strategy thus far has been highly successful. The company's strategy going forward should build on the work that has already been done, but recognize the shift in dynamic both in the industry and in terms of Virgin's own position within the industry. These three recommendations facilitate that, while enhancing the perception of value that the customers have with respect to Virgin.
Q2. Loyalty schemes in general are fading from prominence in the industry, and few of them offer much value to the customer. At present, it is difficult to determine the effectiveness of the loyalty scheme at Virgin Money simply because the credit cards have barely left the launch phase. Certainly people are attracted to the cards, but the next couple of years will see if they remain with Virgin or switch to a competing card. On the surface, however, Virgin's loyalty plan looks weak
The primary value driver for a credit card is the interest rate. Loyalty programs offer 0.69%, which on the average balance of $2,820 amounts to $17.76 per year back to the customer. Not only is this an insignificant amount but it pales in comparison to the difference that a 2-3% change in interest rates offer, which would be $56.40 at 2%. Switching cards yields six months interest free, which on a 12% card would be worth $169.20. The loyalty program as presently constituted has little hope of convincing customers to remain with Virgin, unless the perceived value of the program can be increased...
Competitive Intelligence Report: Barclaycard Today, Barclaycard has grown from its relatively humble beginnings in 1966 to become one of the leading credit card companies in the United Kingdom with more than 10,000,000 cardholders as well as almost nine million cardholders abroad. Although the company has enjoyed a steady increase in the number of cardholders and Barclaycard has been a first mover in introducing new technologies into its business plan in recent
Because the home country is not required to reimburse foreign depositors for losses, there is no corresponding financial penalty for lax supervision; there is, though, a benefit to the country with lenient regulatory policies because of increased revenues generated and the employment opportunities these services provide (Edwards 1999). Furthermore, banks seeking to conduct multinational business are attracted to countries where incorporation laws and the regulatory framework offer less regulatory oversight
Key Success Factors in the Global Auto Rental Industry Pursuing increasingly higher levels of inventory optimization and logistics performance will continue to reduce operations costs for low-cost car rental providers globally (Fink, Reiners, 2006). Operational efficiency that can reduce the cost per hour rental can be so significant it offsets the costs of gasoline over time as well. Second, for any company to succeed in the global auto rental market, the focus
Priceline Case Study Where can a traveler satisfy every need at their price, be it airline tickets, hotel rooms, rental cars, mortgages, new automobiles? The answer is Priceline.com. All you have to do is know your need, state your terms, and make your offer. It doesn't get easier than this. Priceline.com was one of the pioneer online companies to traverse the traditional limitations of the Internet and revolutionize online purchasing. It's
Again, Mc Donald's has managed to deal with competitive threats posed by both these market players due to the fact that the prices that Burger King, Starbucks and Costa Coffee charge are much higher than that charged by Mc Donald's. The primary reason behind higher prices of Costa Coffee and Starbucks is the fact that their target market is much stronger and niche as compared to that of Mc
Awards Gold Standards Empowering Employees to Implement an Award Winning Approach Using TQM to Drive Change and Improve Customer Service Challenges and Benefits Total Quality Management: A Case Study of a Quality Award Winning Organization In today's society, consumers are often seen more as numbers than actual people. Customer service is talked about frequently, but rarely delivered upon. Customer's requests or needs that go beyond what employees typically experience often fall upon the deaf ears of
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