Customer Retention

[v8Statesman]

I have a AMEX Play Charge, QF Ultimate and a boring Amex Blue.

I am thinking of calling up an closing the blue.

Will they just say no problems Mr Statesman and close it? Or will they try and get me to keep it open with some retention offer?

 

[serfty]

I have a AMEX Play Charge, QF Ultimate and a boring Amex Blue.

I am thinking of calling up an closing the blue.

Will they just say no problems Mr Statesman and close it? Or will they try and get me to keep it open with some retention offer?

I don't think Amex are promoting or even taking applications for the blue card anymore.

IMO they'd be happy to can yours if you request it.

 

[Kiwi Flyer]

what is this blue card you refer to?

 

[serfty]

what is this blue card you refer to?

sorry forgot the

An Amex credit card generally made from clear plastic with a slight blue tinge.

 

[Kiwi Flyer]

sorry forgot the

 

[PaulZ]

I have a AMEX Play Charge, QF Ultimate and a boring Amex Blue.

I am thinking of calling up an closing the blue.

Will they just say no problems Mr Statesman and close it? Or will they try and get me to keep it open with some retention offer?

Since you are planning on retaining the high fee yielding card, they would have absolutely no problem with you cancelling the blue card.. and i wouldn't expect anything from them... Suggest you are considering closing the platinum charge and QF Card and then you might get offered something. (if this is the course of action you take, let us know how you go.)



I have had some offers with regards to customer retention...

I have a Platinum Credit Card and a Rewards Maximixer (which they were waiving the annual fee for life)... Well they charged me for supplementaries, and the second supplementary i didn't even want... i wanted to cancel that supplementary and get them to reverse the $36 fee... "Oh Mr Z... that is a little difficult to do... how about we give you a $100 DJ's voucher for keeping it open...". Seems stupid from their standpoint, but i agreed and got the voucher.

Then in the same call I said... i am sick of paying high fees... what can you do on the platinum credit card... "Oh Mr Z... we cant lower the fee... but you are such a good customer... how about we give you another $100 DJ's voucher for keeping it open..." (Not that i said i had even thought about closing it)...

Not bad for 20 mins on the phone.. i plan to try it every 6 months or so...

Here is a question i have... Why would they give away vouchers that must cost them at least $150 - $175 in real money as opposed to just reducing an annual fee... Oh well i guess i get the best end of the deal in my eyes...

 

[oz_mark]

Here is a question i have... Why would they give away vouchers that must cost them at least $150 - $175 in real money as opposed to just reducing an annual fee... Oh well i guess i get the best end of the deal in my eyes...

Internal Processes and Procedure? How they report fee income, versus a marketing budget for retention? What operators are authorised to do? Lots of possibilities

 

[Kiwi Flyer]

A $100 face value voucher would cost them less than $100 cash.

Lots of reasons for offering higher value voucher than a discount on annual fee.

Budgets.
Voucher more clearly one-off, whereas you might expect a discount to be continued.
DJ may have offered the vouchers at very large discount (since they'd expect more business as a result) so the cost really could be comparable.
etc

 

[JohnK]

Internal Processes and Procedure? How they report fee income, versus a marketing budget for retention? What operators are authorised to do? Lots of possibilities

With high interest rates and commissions on transactions, credit card companies do not need to charge annual fees to turn a profit. Does the money go into some form of company bonus pool? A balance sheet sweetener? To me the way credit card employees hate to waive fees for existing customers, and most times for potential new customers, would suggest that there is something in it for them.

 

[JohnK]

Will they just say no problems Mr Statesman and close it? Or will they try and get me to keep it open with some retention offer?

I think they will gladly go ahead and close it. Amex has been trying to remove this card from circulation for a while now. They eventually gave me a fee free Gold Amex and higher credit limit to entice me to replace the blue one. Done deal. Now they are trying to get me to replace my fee free Gold Amex.

 

[oz_mark]

With high interest rates and commissions on transactions, credit card companies do not need to charge annual fees to turn a profit. Does the money go into some form of company bonus pool? A balance sheet sweetener? To me the way credit card employees hate to waive fees for existing customers, and most times for potential new customers, would suggest that there is something in it for them.

Financial Institutions make quite a big thing about their Fee Income these days. Whatever the case, you can expect that the reluctance to waive fees results from some internal mechanism (it may for example be a KPI).

In my experience, while the overall profit result is what really counts, much emphasis is placed on the component that make up that profit. Any trend downward in fee income would probably not be viewed positively.