Discover 2015 Annual Report Download - page 22

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-6-
information see "Management's Discussion and Analysis of Financial Condition and Results of Operations — Loan
Quality — Modified and Restructured Loans."
Marketing
In addition to working with our credit risk management personnel on account acquisition and portfolio
management, our marketing group provides other key functions, including product development, management of our
Cashback Bonus and other rewards programs, protection product management, and brand and advertising
management.
Product Development
In order to attract and retain customers and merchants, we continue to develop new programs, features and
benefits and market them through a variety of channels, including mail, phone and online. Targeted marketing efforts
may include balance transfer offers and reinforcement of our Cashback Bonus and other rewards programs. Through
the development of a large prospect database, use of credit bureau data and use of a customer contact strategy and
management system, we have been able to improve our modeling and customer engagement capabilities, which helps
optimize product, pricing and channel selection.
Rewards / Cashback Bonus
Our cardmembers use several card products that allow them to earn their rewards based on how they want to
use credit, as set forth below.
•Discover it card offers 5% Cashback Bonus in categories that change each quarter up to a quarterly maximum
(signing up is required) and 1% Cashback Bonus on all other purchases, as well as other benefits.
•Discover it NHL card offers the same reward features as the Discover it card plus 10% off purchases at
shopNHL.com and a team-branded credit card.
•Discover it Chrome card offers 2% Cashback Bonus at gas stations and restaurants on up to $1,000 in
combined purchases each quarter and 1% Cashback Bonus on all other purchases, as well as other benefits
• The Discover it Miles card offers 1.5 miles for every dollar spent on purchases, no annual fee and an annual
credit of up to $30 for in-flight Wi-Fi charges.
•Discover it Secured card offers the same reward features as the Discover it Chrome card, as well as other
benefits. This card requires the customer to provide a security deposit as collateral for the credit card account.
Starting one year after account opening, Discover reviews the account monthly to determine whether the
security deposit can be returned. These reviews look for responsible credit use across all of the customer’s cards
and loans.
•Discover More card offers 5% Cashback Bonus in categories that change each quarter up to a quarterly
maximum (signing up is required). Customers earn .25% Cashback Bonus on their first $3,000 on all other
annual purchases and on all warehouse purchases, and 1% Cashback Bonus on purchases over $3,000.
•Discover Open Road card offers 2% Cashback Bonus on the first $250 in combined gas and restaurant
purchases each billing period. Customers earn .25% Cashback Bonus on their first $3,000 on all other annual
purchases and on all warehouse purchases, and 1% Cashback Bonus on purchases over $3,000.
• Discover Motiva card provides customers with Cashback Bonus equal to 5% of their interest charges each
month for making on-time payments. Customers earn .25% Cashback Bonus on their first $3,000 on all other
annual purchases and on all warehouse purchases, and 1% Cashback Bonus on purchases over $3,000.
•Miles by Discover customers receive two miles for every $1 on the first $3,000 in travel and restaurant
purchases each year and one mile for every $1 on all other purchases.
•Escape by Discover customers earn two miles for every $1 on all purchases.
•Discover Business card offers 5% Cashback Bonus on the first $2,000 spent in office supply purchases, 2%
Cashback Bonus on the first $2,000 spent in gas purchases each year, .25% Cashback Bonus on the first
$5,000 in annual purchases and up to 1% Cashback Bonus on all other purchases.
Protection Products
We currently service and maintain existing enrollments of the protection products detailed below for our credit
card customers. Although we suspended new sales of these products to consumers at the end of 2012, we may resume
offering similar products in the future.