MSW’s RDE Analytic Framework rests on a study that found that three equity dimensions (Relevance, Differentiation, Emotion) are responsible for driving a significant portion of brand growth.  Our ongoing Chart of the Week series is dedicated to sharing RDE results for a variety of categories. 

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RDE Assessment among major Credit Card brands was taken among 500 men and women. Comparison of the results between American Express, Discover and one of the leading bank card issuers (Capital One) led to the following insights:

• American Express lagged its rivals in terms of Relevance, likely due to the brand being accepted at fewer retailers given the higher fees the brand charges retailers.  Capital One leads in Relevance likely due to broad acceptance of the Visa and Mastercard networks and the fact that in terms of cards in circulation the brand is close to parity with Chase as leader in the category.

• On the other hand, American Express leads in terms of Differentiation.  The card is still viewed as a luxury brand which is typically a strong differentiator in the minds of consumers.

• Capital One and Discover lead American Express in terms of Emotion.  Capital One likely builds emotional connection with consumers through heavy advertising often featuring celebrities such as Jennifer Garner.  Discover also has a strong advertising presence and appeals such as no annual fee and first year cash-back match may build loyalty and likelihood to recommend.

• Capital One’s lead in overall RDE score reflects its lead versus American Express and Discover in terms of both brand preference and share of cards in circulation.

• On the other hand, American Express leads the other two brands in RDE among heavy credit card users, driven by very strong Differentiation and Emotion levels among these key consumers.

• Discover has a relative strength among women, but also surpasses Capital One among heavy users.