KTC is making the necessary moves to handle intense competition in the credit card business. The firm aims to return to the top position with segmentation of members by age and income as key strategy. At least three new credit cards are in the pipeline with significant budget allocated for promotional activities throughout 2014. KTC will partner up with more upscale establishments and those in major provinces across the country as well. The latest 50 Million Baht campaign “10,000 Baht Spending for 1,000 Points” offers members unlimited, non-expiring points from November 1st, 2013 to January 31st, 2014. The company is confident this campaign will increase total spending by at least 30%.
Mrs. Pittaya Vorapanyasakul, Executive Vice President - Credit Card Business, “KTC” or Krungthai Card Public Company Limited, said “Segmentation is a major strategy for us this year. We study the behaviors of our members by their age and income. Age reflects their wants and income reflects their spending power and lifestyle. This in-depth analysis allows us to design products and promotional campaigns that best correspond with the requirements of our members. Our three groups of interest are the First Jobbers aged 20 to 29 who have recently begin to work. Their income and expense are not very high. They grew up with computer and technology. First jobbers are extroverted and believe in their own potential. The second group is the Exploring & Maturing people aged 30 to 39 and 40 to 49. These are the people who have made their mark in life. They have job security and are able to take care of themselves and their family. Their lifestyle is modern but not necessarily formal. Their focus is the balance between work and family life. The last group is the Settled and Retired people with professional and personal security. Their purchase power is high. They have positive attitude towards buying items for themselves and people in their inner circle of life.”
“By engaging in this segmentation of members, we are able to develop new products and promotional campaigns with greater precision. We are introducing new credit cards in 2014 in order to reach out to new target groups, as well as revamping marketing campaigns for those existing cards. The Forever Rewards points program is being strengthened. We will offer more ways in which members can conveniently use the points in their daily routines. Another effort would be that concerning partners as we will broaden our network of partner establishments to cover all member segments.”
Mr. Tosapong Rangkawara, Vice President - Credit Card Business, “KTC” or Krungthai Card Public Company Limited, said “From our study of member spending behaviors, we can see that the fourth quarter is the period of time when credit card spending is about 20% higher than normal period in all spending categories. This is particularly true for shopping at department stores and supermarkets, dining and traveling. As for our marketing campaign for this fourth quarter of the year, we are investing more than 50 Million Baht in the ‘10,000 Baht Spending for 1,000 Points’ campaign as a gift for all KTC members. This campaign is consistent with the requirements of all our member groups. It leverages on the strengths of the Forever Rewards points which are convenient and unlimited points. We hope this campaign will bring credit card spending up by 30% eventually.”
“Members can participate in this campaign very easily by texting ‘YE’, space, followed by the 16-digit KTC credit card number to 0913795000. You will receive a confirmation message upon successful registration. Alternatively, you can register online at www.ktc.co.th/get1000points. For every 10,000 Baht spent via a KTC credit card, members will receive 1,000 KTC Forever Rewards or KTC ROP points. There is no limit on maximum points to which the members are eligible. These points are also without an expiry date. This offer is valid from November 1st, 2013 to January 31st, 2014.”
KTC has issued about 1.6 million credit cards with total spending of 88,000 Million Baht from January to September 2013. There are 14,000 million Forever Rewards points in the account of the members.