1 December 2009
TD Canada Trust
recently launched an interesting web site called Shop MyAXS
. It is an online shopping site that can be accessed only by TD Visa cardholders. In order to purchase an item, the user must enter their TD Visa account number and create a username and password. The site claims to offer savings of up to 50% off brand names to eligible shoppers. TD appears to have signed up for a loyalty program with a firm called MyAXS
. MyAXS offers the online shopping portal and passes along the discounts to members.
I find it curious that a bank would like to extend itself into the retail business. Granted consumer cards are used for retail purchases, but positioning the bank as a place to shop online is a completely different matter. The big question here is can TD encourage consumers to switch to a TD Visa by offering them shopping discounts? Even if customers do sign up for a TD Visa card, offering them a single deal or a handful of deals is not enough to encourage customers to alter their affiliations. Can it be used as a carrot? For sure. However, the features and rates of TD Bank's cards would have to be extremely compelling in order for customers to switch. In fact, I would argue that TD is more likely to attract one-off deal shoppers than a loyal contingent of converts. It is also a nice feature/perk for existing cardholders.
TD also promotes the MyAXS offering on its own web site, buried in a section called "Related Services.":