Description: This passage talks about Chase End Sapphire Reserve and something about whether it will sign up 100k bonus. It also analyzes the development process and reasons around this problem.
Chases CEO Jamie Dimon has revealed that the incredibly successful launch of chases sapphire reserve card this summer has cost the bank between 200 and 300 million dollars in the fourth quarter of 2017. A factor in the loss of profit is due to the huge sign-up bonus that the Chase Sapphire Reserve currently offers 100,000 chase points.
In fact, the bonus was so enticing for people that Chase did no advertising for the new card around the time of the launch
but spread the cards through social media and credit card blogs.The demand for the Sapphire Reserve was so high that Chase even ran out of the metal cards they use and had to temporarily issue plastic ones.
Bloomberg reported that Chase won’t break even on the new card until five and a half years after the launch which
makes me question, how long will the 100,000 points sign up bonus stay around, for it seems Chase spent their entire
advertising budget for the launch on the bonus instead of doing advertising.
Now their strategy has worked, but as with regular marketing and advertising, you would spend a lot of money to get the word out about your new product and scale it back. Once the card is in wide use, it’s likely that the 100,000 points sign up offer won’t stay around forever.
The chase sapphire preferred has a 50,000 points sign up bonus and the rival to the reserve the annex platinum has only a 40,000 points sign up bonus, even the travel credits that other cards offer a lower and harder to use than the reserve’s universal travel credit of 300 dollars per year.
In the future, there could be changes, whether these things will happen at this time, no one knows. The most likely change would be a reduction in the sign-up bonus, but it would be difficult to predict.
If you want to take advantage of this great deal, the safest option is that you should apply for the card.