Internet financial services company Egg is performing a U-turn on its policy of marketing its credit card as a “no-frills” product, following feedback from customers.
The Egg Card has traditionally been positioned as a low-APR (annual percentage rate) alternative to cards offered by high-street banks, and it also offers a one per cent cash-back reward on all purchases.
But from October it will be promoted as a card that gives special offers and incentives and discounts on purchases made on the Egg website. From October 11, the amount of cash back will also be reduced to 0.5 per cent. The move follows an increase in the card’s APR last month from 11.9 per cent to 12.9 per cent.
Research conducted by the company showed that 84 per cent of its customers wanted to receive discounts on shopping and rewards linked to the purchase of additional Egg products, such as ISAs.
The response contradicts the company’s earlier belief that its predominantly male credit card customers were more interested in low APR and cashback.
In May, an Egg promotion deliberately drew a distinction between the lower cost Egg Card and the Boots Advantage card that it manages on behalf of the retailer. The Advantage card is positioned as an incentive and rewards card and has an APR of 14.9 per cent for new customers.
A spokeswoman for the company says: “Financially the Egg Card is still a great card, but will now have these incentives options.”