Capital One Targeting SMB — Fasting Growing Market Segment!

SMB’s are near and dear to our hearts . . . mostly because we have the best coverage — data-wise — to enable our customers to reach them with an integrated, multi-channel marketing approach. We focused in this area because the SMB market is growing more rapidly than any other business segment — and thus are a very attractive market sector to our Fortune 500 Clients.

Case in point . . . financial services giant, Capital One, has created a new suite of credit card offerings aimed at the SMB sector which provide miles and rewards for all of those SMB purchases. According to the MediaPost article:

Business owners looking for travel rewards can opt for the Spark Miles card, which features double miles on every purchase every day, miles that will not expire, and the flexibility to redeem miles for free flights on any airline anytime with no blackout dates. Spark Business also features four other products, including those with attractive low-rate options.

These are some great incentives and will give other card issuers a run for their money! The statistics around SMB are pretty incredible — which is why Capital One is doing this. The article goes on to state:

Small businesses make up 64% of total U.S. job creation, 65% of the global GDP and account for nearly 90% of the world’s workforce, according to The Kauffman Foundation. Small business owners are looking for credit cards that provide value on many different levels, says Michael Wassmer, executive vice president of U.S. Card for Capital One. Besides the rewards, the card also enhances how owners manage their small business, he adds.

As marketers consider their programs to reach this rapidly growing segment, I think this move by Capital One illustrates that the stakes are higher than ever. Marketers will have to find more creative approaches to vie for the SMB market spend. SMB’s are looking for value and I like the idea of incenting them by providing them with rewards that will enable them to take time off and go on vacations. Entrepreneurs tend to work hard and like anyone else, it’s good to be able to play hard when you’re done working.  It’ll be interesting to see how Capital One’s competitors step up and compete with these new offerings.  I think this will net in a win-win scenario for the SMB market.

TGIF!  Have great weekends all!