I like the idea of a program that rewards you for conducting repeat business. In most any industry it’s cheaper to retain a customer and cultivate them then to acquire a new customer by creating an "affinity" for that companies products.
I participate in two programs conducted by companies where I spend a lot of money. The programs are intended to reward certain behaviors and create greater customer loyalty. Here are two that are failing for stupid reasons.
This program could be great but it just outright stinks. The idea is that you are rewarded for spending money using your Citibank Platinum. If you use it at certain websites you are supposed to get additional points.
Unfortunately, you must go to the Thank You Rewards special website and then pick the retailer even though Citibank knows exactly where you bought your items and for how much. I suspect it’s a matter of getting credit at the retailer for your purchase that it’s not automated. Finding retailer links difficult. The site is almost always slow. It’s hard to derive any benefit from the program that can’t be their intention, can it?
If I were Citibank I would be emailing customers their best Thank You Rewards deals. I would bet that would increase usage on their card. Also if they see I am using my card at a rewards partner site and don’t get the points then they should steer me to the link for the next time at the very least. Or send me an email, alert me in my account management page. This seems to be an easy to provide value-added service that I am sure their users would find attractive and be more consistent with building a more valuable relations. I would think the technology behind this is no more complicated then calculating my bills and sending me statements.
Here’s my latest gripe. I lost my credit card over the summer. When they reissued my card I was not automatically set up with the program. My points balance hasn’t changed since they issued the new card. I am almost afraid to check to see if I can get the credit for six months worth of usage. If not then I am done with them. Also by the way, I just started using another credit card with what looks like a "better" affinity program. Good job building loyalty. Another point of reference, I am sure I spend at least $50,000 on that card per year I wonder what value I have as a customer to them?
[By the way if you want to have a little fun do a search for Citibank blog. It returns tons of negative criticism. I did the search because I wanted to reach someone I could have a conversation with about their web experience. Here's a tip guys, the old way of doing business is over. Given your stock performance over the last year it might be worth your time to figure out how to keep up with your customers expectations. Maybe even exceed them...Drop me an email I will be glad to help you out.]
I travel a lot. I stay at a Westin where I have a corporate rate and it’s close to my office. So I joined their affinity program Starwood Preferred Guest. Here’s the condition to achieve preferred statuses.
- Stay just 10 times (or 25 nights) a year, and earn Gold status.
- Stay 25 times (or 50 nights) a year, and achieve Platinum status.
Does that sound equitable? Why not just 10 nights or 25 nights why are these criteria so different. I am going to likely stay at some hotel in the area for 100+ nights this year but it’s going to take me 2 1/2 times as someone who travels from city to city ten times and who stays one night at a time. I am spending 250% more money and I get less benefit. This is a head-scratcher.
One of my fellow guests told me he’s just started checking out and back in on the same day to get his status faster. Even if he stays at the same place two nights in a row. That’s stupid for the hotel chain, it’s inconvenient for the customer. I switched from staying at the local Lowes Hotel because they didn’t honor their affinity program for travelers who receive corporate rates. By the way Lowes if you want to know what that’s going to cost you this year it’s probably north of $15,000, Westin it’s your business to lose.
I also have a corporate rate at Westin but sometimes the Westin website has better deals. Once again I have an inconvenience when I should as a "valued" customer qualify for the best rate. Maybe you should read your marketing literature on the "Westin Difference" and make it a reality rather than lip service.
No Affinitiy
Neither of these programs have created a stronger relationship between myself and their companies. I have no customer loyalty. Both programs make me jump through stupid hoops to derive the full benefits of their program. The second someone else comes up with a better deal (which shouldn’t be hard) I am off. I wonder if either of these companies achieve any leverage from the programs or are they just a cost of doing business. They have an opportunity to improve customer loyalty and they are both blowing it.
I have a choice were I stay. I have a choice in my credit card. What reason would I have not to exercise my options?
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“It’s a trap!” – Admiral Ackbar
Credit cards are a big ugly trap, allowing American consumers to live well beyond their true means.
A few years ago I cut my final credit card into pieces and have been living almost entirely debt-free (minus the mortgage on the house and the car payments). And if I had planned my finances better, I don’t think I would have needed the car payments.
These award programs are a false economy. You’re not getting something for nothing. You’re selling your future (debt) for some trinkets.
Buying a house without any credit cards last spring was an… “interesting” experience, I must say. Creditors were on one side impressed with our income/debt ratio, but concerned that we had no open lines of credit anywhere. Mortgage lenders in the U.S. actually have a hard time understanding consumers like me.
If I want to buy something nice, I save up for it. If there are too many things I want to buy and not enough money to go around, it sure helps me to prioritize what is really important to me.
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