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Chase Sapphire Reserve September 2016

2 Headlines linked to source

Reserve vs. Preferred 3

Launch Timeline 4

Application and new customer

communication 8

Welcome Kit 10

Public Reception 13

What We Think 15

Appendix 16 Benefits vs. Other HNW Cards

Application Process in detail

Table of Contents

3

Sapphire Reserve Sapphire Preferred

Annual Fee $450 $95 (waived first year)

Bonus Incentive 100k bonus points after $4k

spend in 3 months

50k bonus points after $4k spend in

3 months

Reward Earn 3X points on dining and travel,

1X point on everything else

2x points on dining and travel, 1X

point on everything else

Reward

Redemption

1.5X point redemption rate

through portal

1.25X point redemption rate through

portal

Features

Product, Car Rental, Trip

Insurance Product, Car Rental, Trip Insurance

Full coverage Car Rental

Insurance

Visa Infinite Concierge Services

Access to Reserve Events

Priority Pass Airport Lounge

Access

$300 annual travel credit, $100

Global Entry/TSA Pre-Check

application fee credit

Sapphire Reserve offers a higher earn and redeem than Preferred

4

Launch Timeline

thepointsguy.com (TPG)

announces the card

Sapphire Reserve

micro site goes live

Official Chase

Press Release

Mon, 8/15 Mon, 8/22 Tues, 8/23 Fri, 8/29

Chase tweets a link to

the TPG article

First Banner Ads

on TPG

Chase Twitter and

Facebook covers

feature card

imagery

Chase Tweets a

link to press

release

Applications

officially available

online

First cards arrive

to customers

Sponsored

Instagram post

from TPG

5 Source: Mintel Social Media Monitoring as of 9/15/2016. Images are linked to source.

8/15 | thepointsguy.com announces CSR, Chase tweets a link to the article

325K Followers; 488 Engagements

Thepointsguy.com article

6 Images are linked to source.

8/22 | Micro site up, applications available, first banner ad appears on TPG

Micro site header Micro site detail

Banner ad clicked through to micro site

7 Source: Mintel Social Media Monitoring as of 9/15/2016. Images are linked to source.

8/23 | Official Press Release from Chase, social media updates

326K Followers; 180 Engagements

Chase’s Twitter and Facebook cover pages

were updated with the same image

Official Press Release

A sponsored post from The

Points Guy Instagram

account hypes the card,

and links to the TPG article

about the launch

8

Application Process

Screenshots from the entire application process available in the Appendix.

Applicants not instantly approved met this screen

after applying Instantly approved applicants reached this page

9 Email sourced from Mintel ePerformance/eDataSource. Volumes as of 9/16 are not high enough to provide metric estimates. Benefits site linked to source

Welcome email links to benefits page

10 MarketWatch article linked to source. Metal Card image sourced from Reddit.com

Welcome Kit | Applications and Approvals exceeded supply of metal cards

Some new customers received plastic cards with the below insert

assuring them that the metal card would arrive soon as available.

Some customers who received the metal card and

welcome box posted photos on social media sites

11 Cardmember agreement linked to online pdf. Online source is for Chase Sapphire Preferred, therefore, reflects a $95 annual fee on the first page.

Welcome Kit | Welcome form highlights earn and benefits

Sapphire Reserve customers received the standard Sapphire cardmember agreement.

12 MarketWatch article linked to source. Metal Card image sourced from Reddit.com

Welcome Kit | Benefits Guide and Ultimate Rewards Program Agreement

13

1. Bloomberg.com article

Inc.com article linked to source

• According to a Bloomberg article, Chase claims it spent zero advertising

dollars on the card as of September 2nd, relying entirely on blogs and word

of mouth. However, there was one banner ad placed on the

thepointsguy.com website the day of the card launch.

• Chase is a top advertiser on the thepointsguy.com site. Pathmatics

estimates that Chase has spent $2.05M on advertisements on the site

from January 1 – September 15, 2016. According to Pathmatics, TPG was

the top site for Chase media spend for 2016 YTD, followed by

flyertalk.com at $2.03M.

• The launch was met with intense excitement in the “churner” community as

well as among frequent flyer blogs. A large number of sites have already

claimed that the card is the best travel card available.

Public Reception | Word-of-Mouth Marketing

“[Demand] significantly exceeded our

strongest expectations”

-Lauren Francis, Chase Spokesperson1

The #SapphireReserve handle

on Twitter reflects consumer

excitement

14 Images hyperlinked to source.

• Churning is the process of opening a credit card just for the acquisition bonus, then closing it after the

bonus is earned to avoid fees and limit interest charges.

• The practice has become increasingly popular as of late, and there is an established community of

“Churners” which use social media sites, like Reddit, to share tips and news.

• Churning is thought to be the driving force between Chase’s 5/24 rule. The rule states that if an applicant

has opened 5 accounts within the past 24 months, they are likely to be denied for an additional account.

• Sapphire Reserve likely anticipated some level of churning, charging new account holders with the $450

annual fee in the first month of membership.

Public Reception | “Churning”

A TPG article about the 5/24 rule from July 26th

Bloomberg Article highlights churning for the CSR launch

Reddit, a social media site, has a dedicated Churning

section. The Churning “sub-Reddit” has a Chase Sapphire

Wiki, reflecting to the excitement about the card.

15 1. Q2 Earnings Call Highlights

Mintel’s Blog Chase Sapphire Reserve: What Marketers Need To Know highlights how “blogger power”, premium value, and a shake up in the affluent card market, have led to the Sapphire Reserve’s acquisition success.

Chase CFO, Marianne Lake, said during the bank’s Q2 earnings call1 that a recent

increase in near-prime targeting for cards did not detract from Chase’s “[D]esire to want to be in with engaged customers and our rewards programs, our products are [still] geared towards that.” This card, with a category leading earn and incentive bonus, reflects that rewards program focus.

Chase Sapphire Reserve has the richest travel rewards earn and bonus, and, the highest APRs and balance transfer fees, among premium travel cards. The lowest APR offered on Sapphire Reserve, at 16.24%, is at least 75 basis points higher than its peers, with the exception of the United Mileage Plus Club Card—also issued by Chase. The Sapphire Reserve Card is clearly competing on points, not price.

What We Think…

16

Benefits information sourced from acquisition websites, terms and conditions, and online card reviews. Not all benefits are listed for every card. Blank

spaces denote that specifics on those benefits were not found.

* Close-in fees are fees for award travel booked with 21 days of departure.

Chase

Sapphire

Reserve

American

Express

Platinum

Barclaycard

Black

Barclaycard

Gold Citi Prestige

J.P. Morgan

Palladium

Chase United

MP Club

Annual Fee $450 $450 $495 ($195 for

add. User)

$995 ($295 for

add. User)

$450 ($50 for add.

user)

$595 ($90 for add.

user)

$450 (waived first

year if qualify)

Concierge Yes Yes Yes Yes Yes Yes No

Insurance

Full Car Rental

Coverage, Trip,

Baggage,

Medical, Legal

Assistance,

Travel Accident

Car Rental, Trip,

Medical, Legal

Assistance

- -

Car Rental,

Luggage, Trip,

Medical,

Emergency

Services

Car Rental,

Luggage, Trip,

Medical, Hotel

Burglary,

Emergency

Services, Legal

Assistance

Car Rental,

Luggage, Trip

Purchase

Protection

Purchase,

Return,

Extended

Warranty, Price

Protection

Purchase, Return,

Extended

Warranty,

Damage and

Theft, Event

- -

Purchase,

Damage and

Theft, Price,

Extended

Warranty, Return

Purchase, Return,

Price, Airline

Ticket Protection

Purchase, Return,

Extended

Warranty,

Damage and

Theft, Event,

Price

Other

Invitation Only

events, Visa

Signature

Private Dinner

Service,

Invitation Only

events program,

Secured

reservations at

top restaurants,

Preferred seating,

Luxury Magazine

Luxury gifts,

Airport

Representatives,

Personal Driver

Services, Global

Luggage Delivery,

Select Car Rental

Partners, Luxury

Magazine

Luxury Gifts,

Airport

Representatives,

Personal Driver

Services, Global

Luggage Delivery,

Select Car Rental

Partners, Luxury

Magazine

Roadside

Assistance,

Missed Event

Ticket Protection

Roadside

assistance,

emergency

translation

services, Cruise

loyalty program,

travel planning,

Waiver for close-

in* award booking

fees

Appendix: Purchase and service related benefits

17 Benefits information sourced from acquisition websites, terms and conditions, and online card reviews. Not all benefits are listed for every card

Chase

Sapphire

Reserve

American

Express

Platinum

Barclaycard

Black

Barclaycard

Gold Citi Prestige

J.P. Morgan

Palladium

Chase United MP

Club

Annual

Fee

$450 ($75 for

add. User) $450

$495 ($195 for

add. user)

$995 ($295 for

add. user)

$450 ($50 for

add. user)

$595 ($90 for add.

user)

$450 (waived first

year if qualify)

Purchase

APR 16.24% - 23.24% Charge Card 15.24% 15.24% 15.49% n/a 16.24% - 23.24%

BT Fee 5% n/a $0. Also 0% BT

Apr for 15 mos

$0. Also 0% BT

Apr for 15 mos 3% n/a 5%

Credits

$100 Global

Entry Credit /

$300 Airline

Credit

$100 Global Entry

Credit / $200

Airline Credit

$100 Global

Entry Credit /

$100 Airline

Credit

$100 Global

Entry Credit /

$200 Airline

Credit

$250 Airline credit $100 Global Entry

Credit

$100 credit upon

sign-up

Special

Rewards

Earn /

Redeem

3X points on

travel and dining

worldwide. 50%

bonus for points

travel booked

through portal

2X points on

travel booked

through portal

2X points when

redeemed for

airfare; worth

1.5% for cash

2X points when

redeemed for

airfare; worth

2% for cash

3X points for Air

and travel; 2X

points for Dining

and

Entertainment

2X points for Travel;

3X if booked through

Ultimate Rewards

2X miles on United

purchases, 1.5X

miles elsewhere

Hotel

Loyalty

Program

Luxury Hotel &

Resort Collection

Fine Hotels and

Resorts ; Hilton

HHonors Gold

Barclays Luxury

Hotel Program

Barclays Luxury

Hotel Program

Complementary

4th night on stay

booked through

Concierge

Accelerated savings

through use of

points at Ultimate

Rewards hotel

partners including

Fairmont, Hyatt and

Ritz-Carlton

Hyatt Platinum,

Luxury Hotels and

Resorts

Airline

Loyalty

Program

1:1 points

transfer to

popular frequent

flyer programs

Companion fare

savings on over

20 airlines; 20%

on Delta

Private Flight

Charter Services

Private Flight

Charter Services

Virgin Atlantic,

Singapore

Airlines, Flying

Blue and more

Marquis Jet, British

Airways.

Accelerated redeem

through Ultimate

Rewards portal

United (Free

checked bags,

priority access), 2

for 1 Business First

tickets

Airport

Lounge

Program

Priority Pass

Centurion, Delta

SkyClub, Priority

Pass, Airspace

Lounge Club Lounge Club AA Admiral Club,

Priority Pass

Priority Pass, United

Club United Club

Appendix: Pricing and Travel related benefits

18

Appendix: Application pg. 1

19

Appendix: Application pg. 2

20

Appendix: Application pg. 3

21

Appendix: Application pg. 4

22

Appendix: Application pg. 5

23

Appendix: Application pg. 5 continued

24

Appendix: Application pg. 6

25

Appendix: Application pg. 7, Non-immediate approval

26

Appendix: Application pg. 7, Immediate approval

27

Appendix: Application pg. 8, Immediate approval

28

Appendix: Application pg. 8, Immediate approval

mintel.com

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