IsraCard today unveiled its fourth credit card, the "Preferred" card. The company claims that the card will be positioned higher than any other gold card marketed in the world. The card is intended to serve the top percentile, a core group of the rich, whose number does not exceed 5,000.
The decision to market this card was made, according to IsraCard general manager Haim Krupsky and marketing manager Eli Gidor, after conducting surveys which showed there is a population interested in an exclusive card, namely a card that bestows status upon its holder.
Several years ago, the gold card was presented as a status symbol meant only for select clients. A short time after the companies launched gold cards, they embarked on aggressive sales programs. In reality, after a five year period, the number of gold card users rose by 40%. At IsraCard, for instance, around 20% of IsraCard’s million card holders, carry gold cards. The result is that the gold card is no longer exclusive as hundreds of thousands of IsraCard and Visa clients carry it.
According to Gidor, the Preferred card will give the highest benefits and status. Of course "American Express" targets the same market, but at this time, it has not succeeded in signing up masses of clients. According to Gidor, the "Preferred" is part of a worldwide trend to create prestige cards for the upper percentile.
The card will be launched during March, 1997. Clients who want a card to set them apart from the rest of the country, will not be happy with the card itself. The "Preferred" will also be gold colored, though from up close, the "Preferred" logo appears in large letters. However, in comparison to the benefits given today to gold card holders, the benefits are extensive in terms of credit limits, foreign currency credit and material insurance. Considering the level of credit in Israel and overseas, the assumption is that this card, as opposed to the gold card, will remain within a limited population group.
A top goal of 5,000 cardholders seems optimistic in a country like Israel, but no one doubts the numbers will not come anywhere near to the volume of gold card holders. Of course, "Visa" will soon launch similar card, since this is world-wide trend. Marketing of the "Alpha card" will begin shortly, bringing more innovations to this field.