Chase tries to get back on consumers’ good side, but at what cost?February 19th, 2010 | Posted by in Uncategorized
A recent article in the Washington Post discussed how credit card issuers are not just trying to comply with new regulation but “are trying to change their image as well by aligning themselves on the side of consumers with new programs to help them manage their money.”
Chase recently made its Blueprint program available to 20 million of its cardholders. Customers who enroll in Blueprint can “choose a list of everyday expenses such as groceries or medications to pay in full each month. In return, Chase waives the interest on those charges – even if the customer carries a balance from other purchases”.
Chase actually began developing the Blueprint program two years ago before the recession and before this recent round of legislation and “hopes it will resonate with consumers.” The potential cost of this program is massive given the amount of interest that may be waived across the 20 million customers. Rather than hoping it will work in this new environment, it would have been much smarter if Chase tried this new approach with only a few customers and measured the impact on key metrics like revolving balance, interest from revolving balance, and charge-offs.
The potential cost of getting this strategy wrong and making it available to all customers is massive, while the opportunity cost of waiting a bit longer to design a smart test and learn if the strategy works is much smaller by comparison.
You can follow any responses to this entry through the RSS 2.0 Both comments and pings are currently closed.