Capital One 1998 Annual Report Download - page 10

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Please find page 10 of the 1998 Capital One annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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We market directly to the heart.
By combining our Information-
Based Strategy with one of the
world’s largest data ware-
houses, we’re using mass
customization to market to
people’s passions. Some of our competitors offer affinity
cards by forming alliances with clubs and other groups to
create cards for their members. We leapfrog the groups and
go direct, with cards celebrating the passion of individuals
who enjoy everything from biking and hiking to
birdwatching and gardening. With our skill in micro-
segmentation, we can find and target very small pockets of
passion. Our cards for music lovers, for example, feature
designs with classical, rock, country and jazz motifs. We
also offer a long list of cards aimed at the pride people feel
in their occupations and their ethnic heritage. We’ve found
the smaller the segment, the greater the passion. The
greater the passion, the stronger the response to our
marketing. Our approach allows us to tailor credit limits
and pricing to each customer—a critical advantage over
relationships with affinity groups, most of which insist all
members be treated alike. And by removing the third party
from the relationship, we can pass on savings to consumers
as well as generate higher returns for Capital One.
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