Disclaimer: This is not an actual card, it’s just a concept by me. Some of the features mentioned are already existing in different cards. I just combined them to make a good looking product. Any bank can use below features/benefits/ideas without any Royalty! 😀
Having reviewed almost all worthy credit cards in the market, i still feel the industry is not catching up with the pace as it should. Considering the amazing ~27% YOY growth rate of the industry, credit card companies need to adapt with the new trends/needs of the consumer to win the hearts of huge millennial customer base in next ~5 years.
We Indians are more value centric and the current/upcoming generations are good to pay a premium when there is value in it. So the concept is aligned the same way.
The idea of creating this entire concept all started after i did a review of Dineout recently. It has been running on my mind with high intensity that it didn’t let me sleep, so i designed the product overnight and thought of publishing it. So here we go,
- Type: Premium Lifestyle Credit Card
- Joining fee: Rs.5,000+GST (renewal fee waiver on 8L spend)
- Welcome/renewal vouchers: Rs.3,000 Dineout Vouchers + Rs.3,000 shopping vouchers. (Amazon/Pantaloons)
Let’s print the numbers on back. I took this design from web & did some editing to it. The colour could be black or something similar to ICICI’s latest gemstone card colour gradient.
Fun Fact: I get some cards just for the sake of its design. That’s part of the story on how i ended up with SBI Simply Click. So design matters!
- Regular Reward rate: 1.5% as Reward points
It can be redeemable for flights/hotel/Vouchers similar to Yesbank Credit Card redemption options. Okay, now i knew 1.5% is not good enough, but that’s too early to judge. 😉
International lounge Access:
- Provider: Dreamfolks DragonPass card
- Benefit: 3 Intl lounge visits + 3 spa visits
- Spend 5L and unlock 5(lounge)+5(spa) access.
Dining & wellness benefits at airports are the next big thing. ICICI already started issuing Dreamfolks DragonPass cards with similar benefits.
Domestic lounge Access:
- Provider: Visa Signature (or) Mastercard World
- Benefit: 2 Visits/qtr
- Rs.3,000 Dineout voucher on every 1L spend, upto 12k vouchers (4L spend)
This is basically inspired from ICICI Dineout Offer. Making such dining vouchers as a primary benefit would be AMAZING!
- Rs.1,000 Ola voucher (Ola Money) on every 2L spend, upto 3k vouchers (6L spend)
I still wonder why no credit card company is caring about this most important part of one’s life. I mean 5X/10X points & cashback’s are fine. But direct vouchers would be wonderful isn’t it?
- 10k Taj voucher on every 5L spend, upto 20k vouchers (10L spend)
This is inspired from the India’s best travel credit card: Amex Plat Travel Card.
Less Important Benefits
- Bookmyshow: Buy1 Get1 offer, maybe as a part of Visa Signature Bookyshow offer
- Forex Markup: 1.5% Markup Fee
- Birthday Benefit: 3X points on birthday spends (4.5% Value)
- Spend Based Offers: Engage customers to stretch the spending habit by sending spend based offers frequently.
Value to Customer
So by spending 10 Lakhs, we get vouchers & points with value: INR 50,000. (Net Reward Rate: 5%)
Even if the customer spends only 4 Lakhs (like many), he still gets 5% reward rate.
If you factor in the Lounge/Wellness benefits, it could raise it even more.
Value to Bank
- Dineout Vouchers: High margin business, so banks can get the vouchers at a very low-cost, considering the marketing they get for the brands.
- Taj Vouchers: Again, high margin business, so banks can get the vouchers at a very low-cost. Customer has to anyway spend less/more than voucher value, which is a good for bank/hotel. Taxes to be paid in addition, gives extra cashflow to hotel. Overall makes sense!
- Cab Vouchers: Less margin, and so I’ve limited it to 3k.
The strategy: Run this for 2 years even with minor margin or just no margin to gain premium customers. Then cross sell EMI/loans on card and other products like even Car insurance like Amex to make the real profit or simply follow the strategy of How HDFC Bank Credit Cards Eating the Competition for Lunch.
Ofcourse that’s not all, banks might have whole different calculation, but you get the idea!
So Why such a card?
Well, looking at a lifestyle of a premium cardholder, he must be taking at-least 1/2 Domestic vacation in a year. This card just fulfils that & even more. Lets say you’re living in Mumbai who could spend 10L a year, here’s how it works:
- Take a flight to Chennai (for two member, paid by points)
- Use the Taj Voucher to Stay at some awesome beach resorts like Taj Fishermans Cove Chennai
- Use Complimentary Spa Access to rejuvenate yourself before/after your trip at Mumbai/Chennai airports
- Use Ola vouchers for all to/from airport/hotel travels.
That’s the entire vacation funded by points/vouchers for being very loyal to the bank. He/she can continue to enjoy the airport benefits on his work trips. Further, the dining vouchers are good enough for ~5 visits to restaurants in a year.
- Cardexpert Self Rating: 5/5
Ofcourse 😀 But i’m curious to see your rating. Don’t forget to mention them in the comments below!
Ideally, a single card touches all aspects of one’s life (shop,fly,travel,stay,dine,wellness) that will eventually make them to use it as their primary card.
Alright guys, that’s the end of the story, lets get back to reality!
Do you like this premium card that i designed? If so I can continue to spare another night for a super premium card concept too 😛
If you like a card with such benefits or if you have even a better idea to add, let me know in the comments below. It’s fun! Your comments are highly valuable not just to me & other readers but also to the credit card issuers who might read the thread. Maybe if 1000’s of readers like the concept, why would bank not launch one?!