There’s another side to the high-living lifestyle enjoyed by elite cardholders who carry a BDO Platinum or Titanium MasterCard: high giving.
Within days of Ondoy’s assault on Metro Manila, Nannette Regala, marketing head of Banco De Oro’s Consumer Lending Group, noticed a trend: more cardholders were donating their monthly Reward Points to charities, eschewing the usual catalogue items — things like Patek watches or pricy spas — that elite customers tend to select as rewards for their spending.
“For this special run, we’re encouraging our cardholders to donate their Rewards Points through BDO Foundation which is already in place,” says Regala. Since BDO Foundation is already set up to address the victims of typhoon Ondoy, it’s designated a special unit to specifically collect for this catastrophe. But donating Reward Points is nothing new to BDO Platinum and Titanium cardholders: a special section of the rewards catalogue has long been set aside for charity organizations, and many elite clients already donate this way.
It just goes to show that there’s more to living a rewarding lifestyle than simply acquiring material goods. And maybe now, more than ever, it’s time for customers as well as lending institutions to think carefully about what cardholders want out of life.
The BDO Platinum MasterCard was designed specifically for an elite customer base. After developing credit cards for the mass and gold market, BDO partnered again with MasterCard to come up with Platinum and Titanium to go above and beyond the service provided by all other cards on the market. These cardholders tend to be a more mature, selective market (their credit limits start at P300,000). And they like the special features that the BDO Platinum MasterCard offers.
One feature cardholders appreciate the most is Dual Currency Billing. This allows customers to choose whether to pay in dollars or pesos when they’re abroad; cardholders receive separate billing statements and are allowed to spread their credit limit across currencies as they see fit. “Most of our elite members travel for leisure and with families, so it’s most important for them that we give them the option to choose between paying in pesos or dollars,” explains Regala. “If they go to the US, most of our elite cardholders have dollar accounts, they can pay in dollars with the card. So if there’s a sale, they can take advantage of the lower prices and pay without any foreign exchange markup. It’s part of the spend flexibility of the card.”
Another example of personalized care: birthday cakes are delivered to the top 500 BDO Platinum MasterCard holders. “We want to make sure they know that we remember them, we appreciate them. They’re surprised when a cake is delivered — and not just a store-bought cake, but a very special one. We commission a special designer to make the cakes.” How many credit card companies do that? Well, more would, if they knew it made cardholders feel this appreciated. “We get little comments from cardholders, things they write on the cake courier’s receipt.” Things like “Great job!” or “Thanks a lot!” One supplementary cardholder wrote: “Can I get a cake on my birthday, too?”
Years of building rewarding relationships with bank clients and cardholders — as well as meticulously analyzing their spending habits — has helped BDO design an elite card that truly fits the needs of its card base. “We’re quite selective when we issue a Platinum card,” notes Regala. “While other banks issue a platinum card with a P100,000 credit limit, that’s really a gold card. Our credit limit for this card starts at P300,000. We normally issue the cards to a very select group; BDO Private Bank customers, for instance, maintain accounts of at least P10 million. If they want more credit, certainly we give them more.”
These cardholders tend to travel a lot, mostly for leisure; they prefer to dine in hotels, fine-dining restaurants and shop in boutiques and specialty shops. “Our customers don’t buy cars or yachts when they’re abroad,” she adds, “but they do spend. Even with the economy now, they may choose Asian destinations instead of European destinations, but they do travel and they do shop. So when they do spend, with their high credit limits they have the comfort that they’re not going to be declined. When they’re abroad, they won’t feel they have a limit.”
Most importantly, they expect premium service and convenience. Things like Free Priority Pass membership when traveling. This gives Platinum cardholders (and their family members) access to 600 VIP airport lounges in 300 cities and 75 countries; this is a real plus for frequent travelers. Through the Platinum card, they also enjoy free travel insurance (up to P20 million coverage) and purchase protection insurance (up to $1,000 for lost, stolen or damaged items), use of the card’s travel desk (for speedy service with travel arrangements); and their latest offering, Elite Rewards: a special catalogue for Platinum cardholders with exclusive reward items catered to a more mature market. These include medical equipment such as blood-pressure monitors, special travel packages, and various charity options.
Allowing the cardholder to experience a world of choices is one way to keep them coming back for more. Another way is to “provide experiences.”
“Our elite cardholders like to be invited to special events, happenings that not everyone has access to,” says Regala. “Recently, MasterCard helped us out with the Manila Art Launch held at NBC Tent at The Fort. It was the first of its kind, where we had 40 galleries exhibiting their artists’ paintings.” The works were available for purchase while some were auctioned. A lot of money went to charity, and BDO Platinum MasterCard holders had front-row access to this exclusive event. “The cardholders like the small surprises, like invitations to art shows or our sponsored events at Greenbelt,” adds Regala. Another way of recognizing the premium customer is offering Elite Delights. “It’s a discount program where we tie up with special merchants — like luxury watch stores, places that we know our cardholders patronize. This run, we did one with the Lucerne group of companies so we have exclusive discounts with 11 watch stores. The discounts range from 10 to 30 percent.” The card also offers discounts for hotels, dining establishments and travel packages. BDO is also planning a partnership with the Shangri-La Hotel Group in the very near future.
Ease of use is another standard that sets the BDO Platinum MasterCard apart, and its latest feature — Charge On Demand — may point toward the future of home bill payments. “Whereas most banks offer an auto-charge billing facility where you enroll your utility bills and it’s all automatically charged on one card, we have discovered that there are many customers who like to check their bills first,” notes Regala. “They like to check their consumption and validate it before paying. You can’t do that with an auto-charge billing facility. With us, you can check your bill, say ‘Okay I’d like to pay this bill now.’ You can call our call center and request that a payment be made for the specific account number, for a specific amount, and we will make the bill payment for you, charged to your card. You will see the payment made in your credit billing statement. We do that for about 40 billing partners, including insurance companies, health clubs, as long as they’re enrolled with the bank.”
Of course, with the Christmas season arriving, BDO has a few special end-of-year promos and treats for customers. “We get to reward and recognize our top spenders on a quarterly basis. The gift incentive is usually an invitation to an out-of-country event with roundtrip airfare and accommodations. This year we’re rewarding our top five customers with a trip for two to Bangkok, just so we acknowledge their support and use of the card.”
The key driver to the Platinum card’s success, Regala adds, “is really knowing what the cardholders want and providing it. More than just an aspirational credit card product, we know that they want to be acknowledged for their use of the card and for their loyalty to us.”
Another reason BDO Elite Cards are such a hit is their partner, MasterCard, which has been helping the bank develop the best possible product for each market segment. “Ever since BDO first decided to launch a credit card in 2002, it was MasterCard we turned to. Beyond their being a worldwide brand, the reason is the support they provide in terms of giving us insights on trends, on how our card base is doing, their responsiveness on any query we have or information we may need, whether it be an upgrade of a system or migration of systems. Their operational support is unparalleled.”
It may seem odd to talk about high-living credit cards in these times, but BDO knows its market, one that requires a card that more than matches their lifestyle. I ask Regala if, as the BDO Platinum website puts it, the market is again ready to “experience unparalleled high living”? “It’s not something we really announce or broadcast,” she says. “The ones who want that, they know who they are. If they want it, it’s there for them to take.”
“Of course, we have cardholders that are simpler,” she says, particularly the more “mature” segment who don’t believe in deferring payments. “It took a while to convince some of them to get a credit card because they’re used to paying in cash. But when we tell them you don’t have to bring $10,000 to Hong Kong, you can just bring a card, and they end up using it. It’s more practical. And they appreciate that. Some have converted. And we just make it easier for them.”
And while BDO Platinum MasterCard does offer a luxurious line of items in its rewards catalogue, Regala points out that, no matter how high the credit limit, certain tastes for ordering remain very basic: “Most people still get electric fans. Or air coolers.”