Guest editorial from The Mallett Group
Is your loyalty program leaving revenue on the table? Over the past few years Dual (Jewel/UK lingo) card offerings have begun to be reluctantly embraced by the merchant networks to address acceptance issues. For those of us who have not encountered dual card offerings, they are co-branded credit card products that offer not one, but two network branded cards tied to a single consumer account. Meaning there may be a Diners Club card paired with a MasterCard that is placed into market within a merchant's co-brand card offering.
Because the dual network offering allows the issuer to garner all spend due to acceptance restrictions in certain markets. For example, American Express has more limited merchant acceptance in the UK market, so a companion Visa is offered to capture spend that otherwise would be relegated to other card products in wallet. Meaning it is better to have partial share than no share at all. Counter intuitive upon first blush, but potentially sound as one never wants to be late to the party.
We have seen these offerings in the UK – with the likes of Virgin Atlantic, as well as with airlines in Spain and India. And, watch this space as there are more to come!
The Dual Card offering can be a powerful measure to employ in a less than ideal market situation. However, one needs to navigate the obstacles in a sophisticated manner. It takes more than the average plug and play solution, but in the end it can provide a robust product to consumers and reward the brand with enhanced commercials.