Apple Card: The ultimate loyalty tool

From Caleb Silver’s “The New Apple Credit Card is Built for Stickiness,” posted Wednesday on Investopedia:

“Simplicity, transparency and privacy are at the core of our consumer product development philosophy,” said David M. Solomon, chairman and CEO of Goldman Sachs in Apple’s press release. “We’re thrilled to partner with Apple on Apple Card, which helps customers take control of their financial lives.”

There is that ‘control’ word again. In March’s media show in Cupertino, several executives from Apple kept mentioning that users don’t want to jump around from app to app and device to device, to enjoy their experiences. They want convenience and they want it in their hands. Apple has revolutionized the way we use our hands over the past decade. With the average user touching their phone hundreds of times a day and spending as many as four hours looking at it, the iPhone is the stickiest of products. The new Apple Card just made it even more so.

My take: Sticky screens? Not the most appealing image. But he’s on to something.

12 Comments

  1. Kathy Corby said:

    Reposting from previous Apple Card article

    Noteworthy: Amazon won’t accept Apple Pay but Target does. I, like many Americans, am a Prime
    Member, but if Target accepts Apple Pay for online purchases and can come up with free 1-2 day delivery, I’ll be switching my purchases over. And if Shoprunner is in the mix, it ought to help with other online purchases that Target can’t supply.
    Another draw for me is the analytics. Users are kept advised of the date by which they need to pay to avoid paying interest. The card tracks spending in a transparent easy to understand way. And the idea of getting a present from Apple at the end of every day in the form of Apple cash tickles me pink. I’m in.

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    August 8, 2019
    • Fred Stein said:

      Whole Foods takes Apple Pay. People use it all the time.

      Some store now promote Apple and Android Pay because its faster – lowers their cost a fraction and improves customer sat, for the current customer and those on the line.

      All these little things make Apps so successful.

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      August 8, 2019
  2. David Emery said:

    “My take: Sticky screens? Not the most appealing image.”
    Says the guy who uses an image of chewing gum on a shoe? 🙂 🙂

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    August 8, 2019
  3. “Noteworthy: Amazon won’t accept Apple Pay”

    Does everybody know that? I didn’t. But given how hard Apple makes it to order an Audible book on its iPhones, I’m not surprised.

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    August 8, 2019
  4. Fred Stein said:

    In six to 12 months, the talking heads will discover that Apple Card is a hit. Its distinctive look and use by affluent people will use it in nice stores and restaurants will make it a phenomena.

    Thorstein Veblen’s disciples have to go back to work. What do they call a conspicuous consumption item that costs nothing and provides better financial security?

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    August 8, 2019
    • Dan Scropos said:

      Change that to 6 to 12 weeks and I agree, Fred. This thing will be big right out of the gate.

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      August 8, 2019
  5. Gregg Thurman said:

    “What do they call a conspicuous consumption item that costs nothing and provides better financial security?”

    That’s easy. It’s called the Veblen Effect. Veblen was a late 19th century economist that first recognized, then wrote about conspicuous consumption as an economic phenomena.

    It is the Veblen Effect that makes “luxury” (as opposed to higher quality) items from Apple, Mercedes, Tiffany, et al to sell for far more than relative value based on quality alone. It is the ‘aspirational’ element in iPhones, iPads and why Apple launched Apple Watch with a solid gold $15,000 variant (a sales flop but marketing success).

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    August 8, 2019
  6. Gregg Thurman said:

    In the last 30 seconds of trading today somebody scooped up over 3 million shares (~11% of day total) at ~$203.45 (high of day). The total value of this purchase ~$610,350,000.

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    August 8, 2019
  7. Gregg Thurman said:

    Here’s an interesting look at how the Apple Card will improve “stickiness” AND improve Apple Store revenue.

    https://techpinions.com/apples-strategy-with-apple-card/57498

    [highlights mine]

    “From my own usage, having an Apple Card made me more intentional about using Apple Pay. While I was already a heavy Apple Pay user and the vast majority of places I shop take Apple Pay, I still did not use it 100% of the time. For whatever reason, at certain stores that accept Apple Pay, I still pulled out my credit card. Perhaps just a creature of habit. All of that changed once I got Apple Card. The 2% cashback on Apple Pay payments was the first start but seeing that daily cash show up on a daily basis was even more psychologically rewarding. Those two things have caused me to only use Apple Pay now.

    I’ve also moved all my Apple iTunes purchases, and subscriptions over to Apple Card to get the 3% on the >$100 a year I spend on app purchases, and subscriptions facilitated by Apple. Here again, the psychological benefit comes through as I started thinking about moving all my subscriptions, even ones I’ve set up outside the App Store, to go through the App Store so I can get 3% on a range of other subscriptions to news or media services. All of this is designed to incentivize me to go through Apple as the marketplace for commerce and services as much as possible.

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    August 8, 2019
  8. Phil Service said:

    Used my Apple Card via my Apple Watch at Whole Foods and Safeway today. No glitches whatsoever. One heads up for any of you who don’t have your cards yet. After the Equifax debacle, I froze access to my credit score. So my first attempt to get an Apple Card failed, with a polite message that Goldman Sachs uses TransUnion as their default. So, I unfroze my score at TransUnion and had no further issues.

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    August 8, 2019

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