Going beyond the free toaster as competition tightens<\/p>\n
JAKARTA (JP): As competition among credit cards grows fiercer,
\ncard issuers have begun to offer gifts and rewards to attract
\nmembers or encourage holders to use their cards more often.<\/p>\n
The gifts range from a simple pen to an all-inclusive trip to
\nChristmas Island.<\/p>\n
American Express (Amex) is an example.<\/p>\n
With 38,000 card holders in Indonesia, Amex is currently the
\nmost used charge card in the country. However, since most of its
\ncard holders have more than one card -- they average three to
\nfour cards -- Amex must push its members to use its card.<\/p>\n
A reward program was launched early last month. The launching
\nmade Indonesia the 22nd country in the world to implement Amex's
\nmembership rewards program.<\/p>\n
\"Unlike other banks, we offer a lifestyle by presenting those
\nwho use our cards with real rewards like an all-inclusive package
\nto Christmas Island,\" Roy Tan Hardy, the director for marketing
\nand sales for Amex Travel Related Services Indonesia, told The
\nJakarta Post.<\/p>\n
The program allows card members in Indonesia to earn a point
\nfor every Rp 2,500 (US$ 1) they charge to their account. The
\npoints can be accumulated to procure the 40 lifestyle rewards
\navailable. Some of the rewards include movie previews, dinner for
\n10 at the Oasis restaurant, a P&O Spice Island cruise, a free
\nround of golf at selected championship courses, savings on BMWs
\nand Cherokee Jeeps, an all-inclusive Christmas Island package,
\ntwo nights in an executive suite in selected first-class resorts
\nand a Eurail Pass for two.<\/p>\n
But the rewards cannot be earned automatically. A card member
\nmust first enroll and choose between the frequent flyer program
\nand the non-traveler option.<\/p>\n
Frequent Traveler<\/p>\n
Besides basic rewards, members who choose the frequent flyer
\noption can earn free flights through Passages, which cooperates
\nwith Amex and is the largest frequent flyer program in Asia.<\/p>\n
Passages currently includes Cathay Pacific Airways, Malaysia
\nAirlines, Singapore Airlines, Swiss Air, Silk Air, Delta Air
\nLines, British Airways, Austrian Airlines and All Nippon Airways.<\/p>\n
Accumulated points can be used to supplement the Passages
\npoints. A free air ticket can be obtained after 40,000
\nkilometers.<\/p>\n
\"If your points have accumulated to 69,000, for example, and
\nyour Passages points have reached 36,000, a total of 4,000 points
\ncan be transferred to the Passages points so that you can get a
\nfree air ticket,\" explained Roy.<\/p>\n
A frequent stayers program will be launched soon, said Roy.
\nThe program will allow members to earn points for free rooms at
\nSheraton or Westin hotels around the world.<\/p>\n
\"We also offer an unique experience. In the U.S., one of the
\nrewards is a half-hour flight in a MiG jet fighter. In Indonesia
\nwe're going to offer what our card members want to experience. We
\nmay, for example, present bungy-jumping in Bali,\" Roy pitched.<\/p>\n
Indonesian card holders can get the prizes offered by Amex
\noffices in the other 21 countries.<\/p>\n
Expatriates can also transfer points they have accumulated in
\nother countries to Indonesia.<\/p>\n
\"We're not telling our customers to spend more, we only ask
\nthose who still like to use cash or cheque to replace them with
\nplastic,\" said Roy, adding that in other countries the reward
\nprogram usually boosts spending by 28 to 64 percent.<\/p>\n
Diners<\/p>\n
Gifts are also considered important by Ida Laksmi Shanty,
\ndirector of PT Diners Club Indonesia, the sole franchisee of
\nDiners Club International, Amex's competitor.<\/p>\n
\"Gift giving is probably the only way to compete in this
\nbusiness,\" said Ida. \"Therefore, it is common that one issuer's
\ncreative idea in gift giving is soon copied by other issuers.\"<\/p>\n
Like Amex, Diners also offers rewards to its faithful members.
\nThe rules are the same. Members get one point for every Rp 2,500
\nthey spend. But unlike Amex, which offers lifestyle rewards,
\nDiners also gives things like pens. The gifts are provided for
\nboth Diners' charge card holders and credit card members.<\/p>\n
Diners also cooperates with airlines grouped in the Passages
\nprogram. The cooperation permits Diners 90,000 members, both
\ncharge and credit card holders, access to free tickets.<\/p>\n
Pens or glass sets are available so \"those whose monthly
\naverage spending is around Rp 100,000 ($44.05), still can at
\nleast get a pen for a souvenir,\" Ida said, adding that many
\nhousewives are also interested in accumulating the points to win
\nhousehold appliances like a refrigerator or an oven.<\/p>\n
To compete, Diners also organizes an installment payment
\nprogram which enables its members to purchase certain products on
\ncredit. Members can pay the purchase in three installments
\nwithout having to pay interest.<\/p>\n
Good service is Diners' emphasis, insists Ida, adding that
\nDiners focuses on serving businesspeople who frequently travel
\nand entertain.<\/p>\n
Therefore members who travel can use Diners' special airport
\nlounge facilities which are available in many international
\nairports, except, unfortunately, Indonesia. The purchase and
\ndelivery of tickets is all made simple.<\/p>\n
Travel insurance is also available. The scheme includes
\nmedical care, the transportation of a body back to the country of
\norigin and a ticket for an accompanying person.<\/p>\n
Diners Club Indonesia began a birthday program. Members
\nreceive cards on their birthdays, complete with a list of
\nrestaurants or hotels which offer special discounts for people
\ncelebrating a birthday.<\/p>\n
\"The response last year was very good. I even received a
\nletter from a tycoon who expressed his gratefulness for the
\nprogram,\" said Ida. She added that this year the program has not
\nrun quite as well because of the change in Diners' management.<\/p>\n
\"But next year, everything will run as usual,\" she promised.<\/p>\n
Citibank<\/p>\n
Enny Hardjanto, the marketing and service director for
\nCitibank Card Products, said that Citibank's best service is
\nbasically what the bank offers to its MasterCard and Visa
\nholders.<\/p>\n
\"Citibank has a 24-hour customer service which serves all
\ncustomers wherever they are,\" Enny told the Post.<\/p>\n
Therefore, she said, it's not Citibank's policy to attract new
\ncard members with gifts. However, those whose applications for
\nMasterCard or Visa are accepted before April next year will be
\nable to buy a pair of watches for Rp 85,000.<\/p>\n
Members are also entitled to a gift program called Home Sweet
\nHome if they introduce Visa or MasterCard to their friends. For
\nevery application accepted, members get one point. The points can
\nbe accumulated and exchanged later with gifts which include
\nelectronics, furniture and sports equipment. The points can also
\nbe exchanged for money.<\/p>\n
\"If you're not lazy and have a little spirit, it's easy to
\naccumulate the points,\" insisted Lisa, an employee of a
\nmultinational company in Central Jakarta, who received an alarm
\nclock radio for introducing one of her friends early this year.<\/p>\n
Citibank's card members, about 500,000 in Indonesia, also have
\naccess to 90,000 banking machines around the world. (als)<\/p>",
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"sponsor": "Okusi Associates",
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