Buy a TV at TD Bank?
I find it curious that a bank would like to extend itself into the retail business. Granted consumer cards are used for retail purchases, but positioning the bank as a place to shop online is a completely different matter. The big question here is can TD encourage consumers to switch to a TD Visa by offering them shopping discounts? Even if customers do sign up for a TD Visa card, offering them a single deal or a handful of deals is not enough to encourage customers to alter their affiliations. Can it be used as a carrot? For sure. However, the features and rates of TD Bank's cards would have to be extremely compelling in order for customers to switch. In fact, I would argue that TD is more likely to attract one-off deal shoppers than a loyal contingent of converts. It is also a nice feature/perk for existing cardholders.
TD also promotes the MyAXS offering on its own web site, buried in a section called "Related Services.":
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Bank of America offers something similar to their customers, called the Add it Up program (http://learn.bankofamerica.com/products/savings/add-it-up-turn-good-deals-into-great-deals.html?cm_sp=EBZ-AddItUp2-_-AddItUp2-_-ELT1H128_126108_hlt_dep-aiu-o.jpg). While the methodology of offering the services is different, it looks like all of them want to ensure that their cards are the first to be used.
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Michael, Arun - thanks for your comments.
Michael, the program does not seem to be tied to a loyalty program (other than what is already card-specific). That is a good point however, and would make more sense with this type of offering.
Arun, I am familiar with that program. I blogged about it a little while ago here - http://bankingblog.celent.com/?p=239 . It looks like a very different take but I do agree with your point about each bank wanting to make sure their cards are at the top of the heap.
I could see this having a chance - especially if they tie it to points accumulated through debit card purchases and it is used as a loyalty mechanism. After all, you could argue that AmEx in the US has a brisk retail operation through their rewards website.
I would think the biggest challenge would be to always have the best pricing on their products. It will be inteesting to see how this plays out.