*Capital One, Kmart to Launch Co-Branded Credit Card

Share this content:
Hoping to tap into a large pool of prospective new members, Capital One Financial Corp. this week agreed to launch a new co-branded MasterCard with national retailer Kmart.

Capital One launched a direct mail campaign targeted to both its card members and most of the people within Kmart's database.

While Capital One sponsors several co-branded credit cards, this is the first time it has worked with a traditional retailer, said Dana Ciluffo, media product manager at Capital One, Falls Church, VA. Ciluffo cited two primary reasons for choosing Kmart, Troy, MI.

"The Kmart shopper is in there all of the time and there is also a very high volume of purchases made in those stores," she said. "We can build on that strong brand recognition they have as well as the strong relationships they have with their customers."

While discussing recent reports regarding the declining success rates of private-label credit cards, Ciluffo said Kmart will have a branded card that does not have to stand on its own. She said Kmart customers can receive the benefits traditionally tied to private-label retail cards along with the "extended buying power" of a major credit card.

Ciluffo would not disclose the number of pieces to be mailed, except to say that it included "several million pieces." The drop began last week and will continue throughout this week.

The pieces are customized beyond just having the recipient's name at the top of a personalized letter. The letter is also customized based on a person's credit history.

The letter outlines the card's benefits as well as the incentive offer of no interest for six months on purchases made at Kmart. Recipients will be asked to sign up for the card by going to BlueLight.com, a Kmart subsidiary, calling a toll-free number or mailing the application form.

Other marketing components include take-ones located at checkouts, in-store signage and in-store announcements at more than 2,000 Kmart locations nationwide. Fliers and signs will highlight the no-interest incentive and contain text similar to the direct mail pieces but will not be as extensive.

The campaign was developed inhouse by Capital One.
Loading links....

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here