Understanding the Value of a Unique Offer

In life as in business we are faced with decoding the value of offers. Offers such as bundles, discounts and trials, especially when unique, come with some degree of complexity. Defining the value, however, aligns with foundational marketing principles.

Define the offer
Establish and quantify points of value
Establish value delivered based on NBA (Next Best Alternative)

Premium credit card offerings (Amex Platinum and Chase Sapphire Reserve are the champions of this class) recently raised annual fees by up to 20%. But considering the new higher fees, is the card worth it? Peloton memberships, travel credits, Oura rings, Equinox gyms, Lyft/Uber rides, Door dash and even Lulumon credits… how would we assess value?
Let’s use Chase Sapphire as an example.

Define the offer

For a $795 annual fee
$300 annual travel credit.
$500 annual statement credit for hotels booked via The Edit
$250 annual statement credits on prepaid Chase Travel hotel bookings
Up to $300 annual dining credit at Sapphire Reserve Exclusive Tables
Application fee credit of up to $120 every four years for Global Entry/TSA PreCheck®/Nexus.
Up to $300 StubHub or Viagogo credit
$120 Peloton membership credit
$25 in DoorDash promos each month with an active DashPass membership.
$10 Lyft monthly credit in-app for ride-shares
Complimentary Apple TV+ and Apple Music
Access to airport lounges

Watch the fine print, most of these offers have restrictions

Define the components of Value
While there is clearly value in the offer, some areas are not applicable to all customers. Defining the value based on specific market segments and annualizing the benefit brings more clarity to the value delivered. For a specific segment (me) the value is:

$300 annual travel credit
$300 annual dining credit
$30 annual benefit Global Entry/TSA PreCheck®/Nexus.
$120 annual Peloton membership credit
$300 in DoorDash promos
$120 Lyft credit
Airport lounge access

In this instance, the value for this segment is real and the offer could be accepted. A similar assessment of the Amex offer would allow us to see which offer (both unique) would result in the greatest value.

In short, when an offer is complex, structured analysis helps define value for me (a target segment.) The process is straightforward and in line with marketing strategic marketing and value understanding principles.

Define the offer
Define the components of value (and cost)
Quantify value and remember it does not have value unless it has value for you/your organization