HDFC Bank, which on Thursday rolled out its new range of cards known as Millennia Cards targetting millennials plans to spend 70% – 75% of its above-the-line (ATL) marketing budget on digital, Parag Rao, country head for card payments and merchant acquisitions at HDFC Bank, told ETBE.
The new set of cards have been rolled out in association with MasterCard.
According to Rao digital allows very focussed and targetted marketing based on the profile of the customer, demographics, basic usage of the customer’s likes, interest, among others. “We clearly understand the millennial youth is not simply someone from Bandra or South Mumbai. The bulk of the millennial population live in smaller cities including Indore, Lucknow and Coimbatore. Given the widespread footprint we have as far as digital is concerned, we will target all,” he added.
The new range of cards are available in four variants- Millennia Credit Card, Millennia Easy EMI Card, Millennia Debit Card, and Millennia Prepaid Card. These new set of products also allows users to avail cashbacks and discounts varying from card-to-card.
For Rao, the initial stage of the campaign will be about creating awareness, followed by adoption and finally acquisition. “That’s the typical four-five months of awareness, adoption and acquisition mode. Once that settles down into steady state of acquisition then you shift to what is called the customer engagement,” he explained.
In August, ET had reported that HDFC Bank is planning to double its credit card base and triple the merchant acquiring business this fiscal. At the time, the bank claimed to have a credit card base of 12.5 million and 9,00,000 unique merchants with 1.5 million acceptance points.
“We have doubled our acquisition of savings and salary accounts since April; we are crossing half-a-million new current and savings accounts (CASA) customers every month, we are also acquiring more merchants. So, clearly, the opportunity for me doubles,” Rao had told ET.
HDFC Bank, which has a 43% share in the merchant acquiring business, is adding nearly 1,00,000 new merchants every month, with the expansion happening outside the top eight metros.