Hyundai Card's 3F Structure, explained

3F Structure logo

There were times when people received credit cards without giving too much thought. Some applied for “Gold” cards that a bank clerk recommended. Others chose “Silver” cards used by their friends. Some even settled on the “regular” cards that most people carried. While card companies offered various rewards and benefits, there were only a few people who truly understood what the perks are really about. Most of them were delivered like a bunch of meaningless letters listed on a big Yellow Pages. Even the customers with a solid grasp of reward system were likely to forget how to enjoy the benefits, as it comes with numerous disclaimers and restrictions.

Among card companies in Korea, Hyundai Card was the first to simplify those complicated reward structure. In July 2013, those structures were divided into two categories: point rewards and discount benefits. Hyundai Card removed various restrictions to focus on rewards, which were offered depending on the amount of card spending. Consumers no longer had to agonize over what kinds of rewards they can enjoy when using a card. It was the moment when the rewards structure was shifted from provider-based to consumer-based one.

Hyundai Card DIGITAL LOVER is a new credit card targeting the generation of “digital natives.”
Its design was also themed around those travelling alone in the universe to reflect the digital generation’s lifestyle.

But people were still busy and lazy. Even though their spending habits became more diverse, there was not enough time to consider the details of the card’s benefit structure. Instead of benefiting from easy-to-understand reward structure, consumers wanted the credit cards to reflect their spending patterns automatically. “The more convenient the products are, the more likely people would give them a premium.” It has become a norm in the credit card industry.

Starting with “Hyundai Card DIGITAL LOVER (hereinafter DIGITAL LOVER),” Hyundai Card has unveiled a new card rewards structure called “3F Structure,” which offers maximized benefits in accordance with social spending trends and individual consuming habits. First, it created “basic” benefits after reflecting current consumer spending trends -- such as smart pay and streaming services. Second, it introduced “subscription” model to expand the scope of the benefits. Lastly, customized benefits are delivered as a “gift” by identifying individual spending patterns with data analytics technology. This is how the 3F Structure was born.

The 1st floor is similar to card benefits that we are familiar with. They are basic benefits that can be offered when you get a credit card and pay an annual fee. Along with the exclusive benefits available to Hyundai Card users --including discounts on Super Concert ticket purchases and a free entry to Hyundai Card Libraries -- consumers can enjoy more distinguished benefits that fit into their lifestyle.

DIGITAL LOVER, which was rolled out as the first new product under the 3F structure, contains benefits required for digital life as its name suggested. When consumers use one of the four major streaming services (YouTube Premium, Netflix, Melon, Genie), DIGITAL LOVER users can enjoy up to 10,000 won discount per month. It showcased the latest trend where consumers enjoy watching movies and TV shows more on YouTube and Netflix than on a movie theater.

Besides, DIGITAL LOVER users can enjoy 5% discount on their purchases from online smart pay platforms, such as Samsung Pay, KakaoPay, Naver Pay, SSG Pay, SmilePay and Coupay. The amount of discount is up to 10,000 won per month. It is the result of Hyundai Card’s efforts to capture the latest consuming trend, where people are likely to purchase products and services using kiosks, chatbots or other state-of-the-art technologies without talking to sales clerks in person.

Footage introducing 1F from YouTube’s “3F structure tutorial” video

On top of the 1st floor lies the 2nd floor. Diverse benefits are offered as “packages” after taking into account the customers’ interests. Those packages are then selected by the consumers, who can subscribe to the packages they want. Just like people who like books subscribe to magazines and those who like to work out go to the gym. Instead of the monthly payment at gym and book subscription services, DIGITAL LOVER users only have to pay every six month.

There are three types of packages available until now. The first one is “Shopping Pack,” which offers benefits to the customers who love shopping through various online platforms. “Play Pack” offers diverse benefits to the customers who enjoy travel and cultural activities at hotels, concerts and other places. The last one is “Digital Pack,” which offers free trials on music streaming platforms such as “Genie Music” and e-book services like “ridiselect” from ridibooks, a book subscription service. Hyundai Card will offer more packages designed to reflect the need of the consumers.

Footage introducing 2F from YouTube’s 3F structure tutorial video

On the 3rd floor, Digital Lover offers customized benefits tailored for users’ preferences. Hyundai Card analyzes customers’ spending patterns with its data curation skills. Individual customers can receive various coupons or discounts, which deem essential to the consumers. All of these benefits, as its name “gift” suggests, are given for free.

Since those benefits are “customized,” the specific type of the benefits can vary depending on users spending habits. If a customer has travelled a lot, primary benefits can be related to the spending at airports, duty-free shops, hotels and among others. If you like to shop online, you are likely to get benefits available at online merchandizers. The procedure to check out the available benefits is simple – Just open up Hyundai Card’s app, click on “3F Gifts” category and pick up the benefits you want.

How those benefits are arranged on the app is also dependent upon the customers’ spending habits. Recommendation algorithms allows “most-favored benefits” to show up first after analyzing the consumers’ spending patterns. “Artificial Intelligence analyzes which benefits it would offer the customers. The more data it accumulates, the more advanced this customized service will become,” a Hyundai Card employee said.

Footage introducing 3F from YouTube’s 3F structure tutorial video

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