1. Why has Chase Sapphire Reserve been so successful in acquiring customers? Discuss in terms of functional, social, ego-expressive, experiential and economic values provided by the Reserve card. Will this success continue over time? Why or why not? What changes would you make to their customer acquisition strategy going forward?

2.How would you evaluate the introductory 100,000 point sign up bonus? Do you think it was a good or bad acquisition investment for Chase?

3. What marketing strategies should Chase employ to maximize customer lifetime value (CLV) for each of the three groups of customers? Note that CLV is a function of margin, churn and acquisition costs. Given the high acquisition costs associated with Reserve, how can Codispoti increase revenue, reduce expenses, and/or improve retention for transactors, revolvers and churners? What changes to the product would you recommend?

Public Answer

OOJBMI The First Answerer