Does Chase care about customer retention?
Jan 28, 2020, 7:21 pm
#1
Original Poster
Join Date: Mar 2017
Location: Orange County, California
Posts: 45
Does Chase care about customer retention?
I'm curious about credit card companies' different attitudes toward customer retention:
What accounts for this difference in customer retention approaches? Has anyone else experienced such differences between Chase and other credit cards?
- With Capitol One, when I mention canceling my credit cards, they find out the reason and do whatever they can to keep me as a customer. So, it's no surprise that we've never canceled our Capital One cards.
- With Chase, I've mentioned canceling cards via phone, they say "We're sorry to hear that," and that's it. And when I mention it in writing, they don't respond to it at all. So, it's likely that when we return from our vacation, our Chase cards are history.
What accounts for this difference in customer retention approaches? Has anyone else experienced such differences between Chase and other credit cards?
Jan 28, 2020, 8:45 pm
#2
Join Date: May 2015
Location: LAX, BUR
Programs: AS,AA,JB, HH Gold, Starriott Titanium Elite, Hyatt Explorist, Global Entry
Posts: 1,933
If you don't get any value out of Chase, yes close and move on.
Jan 28, 2020, 11:59 pm
#3
Join Date: Oct 2016
Posts: 277
Chase doesn’t offer retention on their Ultimate Rewards cards because the annual fees are an important part of their profitability equation. With Capital One, the fees are more of a bonus and they also have a lower average credit score so I speculate those on the top end are likely to get kept around for ratings purposes.
Jan 29, 2020, 7:03 am
#4
Suspended
Join Date: Jan 2017
Location: EWR/PHL/BWI
Posts: 4,412
The short answer is NO.
Fee revenue is a big part of its business. They designed the point benefit just to induce you to hold their cards for all your spending, carry a balance even better. If you use their "benefit" so much and they do not make $$ from you, then they would shut you down and move on.
Fee revenue is a big part of its business. They designed the point benefit just to induce you to hold their cards for all your spending, carry a balance even better. If you use their "benefit" so much and they do not make $$ from you, then they would shut you down and move on.
Jan 29, 2020, 7:24 am
#5
Join Date: Aug 2017
Programs: Hilton Diamond, IHG Spire Ambassador, Global Entry
Posts: 2,849
You don't get to be the biggest bank in the US unless you are doing something right. What bank has a successful business model from giving away retention to people who would otherwise leave? The better plan is putting resources into making a product that people WANT. Capital One is more desperate to keep clients, so they will throw out offers. Meanwhile, people are signing up to Chase cards left and right. Why do they need to cater to people who are either trying to scam them out of the AF or won't use the product?
Besides, in today's age, companies should know that the internet will take advantage of anything they can.
Besides, in today's age, companies should know that the internet will take advantage of anything they can.
Jan 29, 2020, 7:58 am
#6
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Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
It means exactly what Chase says, "we're sorry to hear that." If you don't see value in any product or service, why on earth are you spending money on it in the first place?
Just cancel the card and move on.
Just cancel the card and move on.
Jan 29, 2020, 8:26 am
#7
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Join Date: Jan 2017
Location: EWR/PHL/BWI
Posts: 4,412
Chase runs a flawed business models and it makes the churners happy. It offers a fat bonus for new card holders with high AFs. Chase then expects cardholders to use the card for all spending or carry a balance.
The churners then cancel the cards after getting the bonus. Wait for 2 years and come back and get bonus again.
The churners then cancel the cards after getting the bonus. Wait for 2 years and come back and get bonus again.
Last edited by RedSun; Jan 29, 2020 at 8:36 am
Jan 29, 2020, 8:32 am
#9
Join Date: Aug 2005
Posts: 66
Chase runs a flawed business models and it makes the churners happy. It offers a fat bonus for new card holders with high AFs. Chase then expects cardholders to use the card for all spending or carry a bonus.
The churners then cancel the cards after getting the bonus. Wait for 2 years and come back and get bonus again.
The churners then cancel the cards after getting the bonus. Wait for 2 years and come back and get bonus again.
Jan 29, 2020, 8:40 am
#10
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Join Date: Jan 2017
Location: EWR/PHL/BWI
Posts: 4,412
If you look at bank earning reports, you'll see BofA, Citi and even Wells Fargo have higher interest income to fee incomes from credit card businesses. They spend more time servicing existing customers and keep their business, particularly the average or lower income customers. But Chase target more affluent customers who carry premium (travel) credit cards and carry no or lower balances.
Jan 29, 2020, 6:30 pm
#11
Original Poster
Join Date: Mar 2017
Location: Orange County, California
Posts: 45
Our Chase cards have actually been fine until our current trip: they mostly stopped working in Malaysia this year, which is detailed in another post. They even worked in Malaysia last year. Not to rehash that post here but Chase has not answered any of my questions as to why it's happening.
Unfortunately, they're the only credit cards we have atm, so we need to depend on them for our upcoming stops in Singapore and Japan where, hopefully, they will present no problems.
But yes, we will be cancelling them when we return home. And bringing more reliable cards on our next Malaysia trip.
Unfortunately, they're the only credit cards we have atm, so we need to depend on them for our upcoming stops in Singapore and Japan where, hopefully, they will present no problems.
But yes, we will be cancelling them when we return home. And bringing more reliable cards on our next Malaysia trip.
Jan 30, 2020, 6:29 am
#13
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Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,953
Chase does make retention offers, but not for Sapphire Reserve:
https://www.flyertalk.com/forum/chas...rs-2020-a.html
https://www.flyertalk.com/forum/chas...rs-2020-a.html
Jan 30, 2020, 9:08 am
#15
Join Date: Jun 2015
Location: DAY
Programs: Rapid Rewards, Skymiles, Hilton HHonors, SPG/Marriott Rewards
Posts: 4,944
Chase does make retention offers, but not for Sapphire Reserve:
https://www.flyertalk.com/forum/chas...rs-2020-a.html
https://www.flyertalk.com/forum/chas...rs-2020-a.html
