Chase Sapphire Creating a Millennial Cult Brand Case Solution

1. With respect to CRM, what should Chase Sapphire do moving ahead to increase its competitive advantage? Identify the issues and suggest solutions for the same.

Chase Sapphire has an exponentially increasing base of customers following the launch of the card. In order to retain the customers, it would be essential for it to ensure customer satisfaction so that they do not switch to the competitors and the churn rate for the business is lowered. The company came up with an innovative strategy as it launched its new card and offer a 100,000 sign-up bonus on the card but the positive results may be short-lived as customers may not be willing to pay $450 renewal fee at the end of the first year. Also, although the card is focused on the needs of the millennials, the point system that applies on dining and travelling may not be in line with the preferences of the customers which is why it would be essential to constantly gather customer insights to ensure that they are provided with the best offers and promotions. Not only this, but the company can make use of customized offerings and promotions for its customers which would include additional points for them on their birthdays or wedding anniversaries, the data which the company can maintain in a CRM platform. This would enable JP Morgan to build a loyal base of customers as customers will develop an emotional association with the company and will stick with using the Chase Sapphire card lines. This would mean a sustainable competitive advantage for the company as the company will be able to engage with the customers and personalize its offerings to the needs of its millennial community who will feel valued and this will be consistent with the brand focus of the company that revolves around promoting inclusivity.

2. What is your assessment of the Chase Sapphire Reserve card? Is this a good product for JPMorgan Chase (JPMC)? For the Sapphire brand? Why or why not?

As per the case, JP Morgan Chase was able to exceed its sales targets within the first two weeks of launching the Chase Sapphire Reserve Card. This indicates that the launch of the card was successful. Assessing the Chase Card, it is distinct from the other cards in the market as it offers 100,000 points sign-up bonus after the cardholders spend a certain amount, a $450 annual fee, and a $300 travel credit. Other features of the card include 1.5% points on every dollar conversion that is made for the purpose of travelling and 3 points per dollar spent on dining or travelling. The most attractive feature was the 100,000 points sign-up onus which made the card popular among the bloggers and social media users. Hence, I believe the card has played an important role in making JP Morgan’s customers feel exclusive. The card has been quite popular among the millennial community as the card is quite flexible and covers different categories. In my opinion, the Chase Sapphire Card is an excellent product launched by JP Morgan Chase. The card became so attractive among a large number of people that many people wanted to subscribe for the card and be a part of the exclusive community. Also, the card was quite popular among the young individuals as half of the new customers were under 35years old. The people belonging to this demographic group tend to have a strong presence on social media and hence were very active on sharing the pics and unboxing videos of the card on social media which created more hype for the card and contributed to the high sales that were exceeding the set target by the company.