Capital One Credit Card: Acquisition & Promotion Strategy

Q: Capital One Credit Card: Acquisition & Promotion Strategy

This question evaluates a product manager's skills in acquisition strategy, pricing and promotional trade-offs, unit-economics-driven decision-making, customer segmentation, channel selection, and ROI analysis for a consumer credit product.

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Question

Launching a New Credit Card (with a Clear, Effective Annual Fee)

You are launching a new consumer credit card with a transparent, effective annual fee.

Assumptions to make the task concrete:

Mid-tier rewards card, effective annual fee ≈ $95 (clear pricing, minimal credits).
Targeting prime/super-prime consumers (FICO 700+).
Goal: maximize profitable acquisitions while keeping payback under 12–15 months.

Tasks

Propose a plan to maximize acquisitions:
- Define target user segments.
- Recommend acquisition channels.
- Set funnel goals (from impression to first spend).
Compare four promotions:
- (a) Sign-up bonus points
- (b) Experiential perks
- (c) Lower APR
- (d) Reduced annual fee Recommend one, justify ROI, and discuss trade-offs.
List key metrics (e.g., acquisition delta, retention, risk) and predict how your chosen promotion will shift them.

Capital One Credit Card: Acquisition & Promotion Strategy

Launching a New Credit Card (with a Clear, Effective Annual Fee)

Tasks

Solution

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Capital One Credit Card: Acquisition & Promotion Strategy

Overview

Launching a New Credit Card (with a Clear, Effective Annual Fee)

Tasks

Solution

Comments (0)