Capital One 1998 Annual Report Download - page 11

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Please find page 11 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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9
Everybody in our industry wants blue-
chip customers. We’ve got them. And
they’re the fastest-growing segment of
our business. Most card issuers treat
all affluent customers with good credit
histories alike. We know this market is
not a monolith. It’s a mosaic of many, many micro-
segments. We’re rapidly growing our business with these
“superprime” customers by using scientific testing and
mass customization to create distinctive products serving
a multiplicity of needs. The 9.9% fixed rate card we
introduced for the superprime market is widely
recognized as a best buy. Our Miles One frequent flyer
program comes without blackout periods or seat
restrictions and is redeemable on any airline. Because of
our commitment to looking after customers, Mercedes-
Benz invited us to create a card offering Mercedes
drivers the high prestige and quality of its own brand.
The card has been a big success. As we have pushed
innovation and microsegmentation to new levels in this
market, superprime loans have grown to 30% of our
portfolio in only two years. In the process, we have given
Capital One a gateway to America’s premier consumer
market. Through further innovation and segmentation,
we expect continued growth with superprime customers.