Telecoms firm BT has, this week, entered the financial services market with the launch of a credit card with an automatic reward scheme that promises to reduce home telephone and broadband bills.

Over the past year, Diametric have worked closely with BT to provide their research, insight and analytics expertise to help them drive the proposition for the launch of this innovative credit card, with specific focus on elements of the card offer (APR, rewards, introductory offer) and customer targeting.

The credit card will have tiered redemption rates based on monthly spend with customers able to receive money off their bill, up to a maximum of £75 savings per annum. For the first £250 of spend on the card each month, customers will earn 1p for every £2 of purchases, with no minimum spend required. Above £250 of card purchases per month, customers will earn double the discount on their BT bill: 1p for every additional £1 spent.

For example, if customers spend £200 each month they will receive £3.00 discount on their quarterly phone or broadband bill. A monthly spend of £500 on the BT card will be rewarded with a £11.25 discount on the quarterly bill.

The card, available in four colours, will carry the BT logo and is issued and managed by MBNA bank.

BT developed the credit card following a series of online qantitative studies and subsequent in-depth interviews delivered by Diametric. The objective was to both quantify the projected levels of card take-up and use conjoint analysis alongside in-depth customer interviews to identify key proposition drivers across BT's customer segments. The insights revealed a significant level of customer interest and a need for genuine value from a reward scheme without the inconvenience of having to redeem points or vouchers.