Credit Card Loyalty Programs Drop Restraint in Fierce Competition
Translated & summarized from Maariv by baba
Israeli credit card companies are engaged in a direct and aggressive advertising war, abandoning previous norms of subtle competition. Cal's "Fly All" program is directly attacking El Al's "Matmid" club, highlighting superior benefits and customer service. This shift signifies the end of financial "delicacy" in the market, with companies battling for customers and market share.
The story in 5 lines · by baba
- Israeli credit card loyalty programs have dropped restraint, directly attacking competitors in advertising campaigns.
- Cal's "Fly All" program criticizes El Al's "Matmid" club, promoting its own superior benefits.
- The aggressive campaigns signal an end to financial "delicacy" and a fierce battle for customers.
- This direct confrontation is a departure from the industry's past practice of indirect competition.
- Yafit Graini, CEO of Cal, is reportedly pushing the "Fly All" program forward aggressively.
The Israeli credit card market has seen a dramatic shift as loyalty programs, particularly between Cal's "Fly All" and El Al's "Matmid" club, have abandoned previous norms of indirect competition. Instead, they are now directly attacking each other in aggressive advertising campaigns, signaling an end to financial "delicacy" and a fierce battle for customers' money and perceived value.
Cal's "Fly All" program is actively promoting its benefits, claiming 200,000 customers and offering a $150 benefit to new and existing clients, with returns significantly higher than competitors. Their campaign directly criticizes El Al's "Matmid" club, referring to its members as "Point People" who are perceived as unhelpful, contrasting them with "Line People" at Fly All who are seen as more effective.
This direct confrontation marks a departure from the industry's past practice of banks and credit card companies advertising their own products without directly naming or attacking rivals. While past disputes, like those between Bank Leumi and Bank Mizrahi, occurred, they did not significantly sway customer loyalty. The current campaigns by Cal, controlled by Discount Bank, and the counter-campaign by El Al and IsraCard, demonstrate that the financial "delicacy" has vanished.
Industry observers note that El Al and IsraCard were caught off guard by the launch of Cal's "Fly All" program. Yafit Graini, CEO of Cal, is reportedly pushing the program forward aggressively, operating as if it were privately owned. This intense financial battle is not just about monetary value but also about ego, with both sides having "dropped the gloves."
