Low Value Customer
#1
Original Poster
Join Date: Aug 2016
Location: RDU
Programs: DL PM, Hilton Diamond, IHG Gold
Posts: 312
Low Value Customer
I couldn't find anything in search, so here goes
I hear a lot about high value customers and 360s getting special treatment. Does anyone know if Delta also looks at bad customers and is less likely to bend rules for them?
I'm certainly a low value customer. PM butt in seat miles. Silver spend with a bit of pay with miles and qualify on the amex waiver.
I get a ton of upgrades, a lot of value out of the program and delta always seems to bend rules for me. If i was in charge at Delta i think i would fire me as a customer.
Any thoughts?
**Edit: program changes seem to be working towards a more MQD favored qualification. Diamond spend waiver bumping up to $250K reflects this. I think I'm more interested in if there is a current service impact of being low value, rather than does Delta dislike low value customers.
I hear a lot about high value customers and 360s getting special treatment. Does anyone know if Delta also looks at bad customers and is less likely to bend rules for them?
I'm certainly a low value customer. PM butt in seat miles. Silver spend with a bit of pay with miles and qualify on the amex waiver.
I get a ton of upgrades, a lot of value out of the program and delta always seems to bend rules for me. If i was in charge at Delta i think i would fire me as a customer.
Any thoughts?
**Edit: program changes seem to be working towards a more MQD favored qualification. Diamond spend waiver bumping up to $250K reflects this. I think I'm more interested in if there is a current service impact of being low value, rather than does Delta dislike low value customers.
Last edited by Psyduck1; Jan 13, 2019 at 11:48 am
#2
Suspended
Join Date: Aug 2009
Location: Look up - On a ✈ DELTA ✈ jet NOW!
Programs: Blogger & Delta Diamond Medallion Million Miler
Posts: 4,174
I couldn't find anything in search, so here goes
I hear a lot about high value customers and 360s getting special treatment. Does anyone know if Delta also looks at bad customers and is less likely to bend rules for them?
I'm certainly a low value customer. PM butt in seat miles. Silver spend with a bit of pay with miles and qualify on the amex waiver.
I get a ton of upgrades, a lot of value out of the program and delta always seems to bend rules for me. If i was in charge at Delta i think i would fire me as a customer.
Any thoughts?
I hear a lot about high value customers and 360s getting special treatment. Does anyone know if Delta also looks at bad customers and is less likely to bend rules for them?
I'm certainly a low value customer. PM butt in seat miles. Silver spend with a bit of pay with miles and qualify on the amex waiver.
I get a ton of upgrades, a lot of value out of the program and delta always seems to bend rules for me. If i was in charge at Delta i think i would fire me as a customer.
Any thoughts?
Those of use who earn status via card spend and such are just as valuable (if not more so) to Delta. Enjoy your earned perks!
#3
Original Poster
Join Date: Aug 2016
Location: RDU
Programs: DL PM, Hilton Diamond, IHG Gold
Posts: 312
You seem to be under the miss-information that CC spending is not valuable to Delta (and only those who pay money are). In the $DAL conference call they clearly stated they care not miles spent or money.
Those of use who earn status via card spend and such are just as valuable (if not more so) to Delta. Enjoy your earned perks!
Those of use who earn status via card spend and such are just as valuable (if not more so) to Delta. Enjoy your earned perks!
#4
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Join Date: Aug 2009
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Most who have the Reserve card spend 60k per year for 2x15k MQM and SkyMiles bonus. Some hold 2x Reserve and spend 120k for both bonus (personal and biz). I, for example, have already run 30k on mine this year and will run next 30 in April (tax time again).
#5
Original Poster
Join Date: Aug 2016
Location: RDU
Programs: DL PM, Hilton Diamond, IHG Gold
Posts: 312
Gotcha. I guess if you look at mix I'm probably a one off so immaterial to delta.
#6
Join Date: Dec 2018
Location: PHX
Programs: Delta DM, Marriott Lifetime Titanium, HHonrs Diamond
Posts: 1,336
The margins from credit card spend are way better than the margins involved with staffing and flying actual flights in the most cases. Plus it is easy to expand credit card spending vs expanding routes, frequency, or upgauging equipment which carries more financial risk.
https://www.wsj.com/articles/airline...rds-1535362202
I can see MQD slowly replacing the mileage qualification as it more directly reflects revenue, but the CC spend waiver should be here to stay.
As someone who is a DM and a shareholder, I have to say that everything my DM flier side wants to see changed, my shareholder side rejects. And everything I want to see as a shareholder, my DM side takes issue with, I guess that means management is doing a good job balancing the wants of both audiences.
https://www.wsj.com/articles/airline...rds-1535362202
I can see MQD slowly replacing the mileage qualification as it more directly reflects revenue, but the CC spend waiver should be here to stay.
As someone who is a DM and a shareholder, I have to say that everything my DM flier side wants to see changed, my shareholder side rejects. And everything I want to see as a shareholder, my DM side takes issue with, I guess that means management is doing a good job balancing the wants of both audiences.
#7
Join Date: Dec 2002
Location: Washington, DC, Chapel Hill, NC (RDU)
Programs: DL Plat (won't hit DM again) 2MM (2.5), HH Gold, PC Gold, Hyatt Plat
Posts: 5,626
I guess I'm a low value customer as well-- Diamond since the beginning, just a blue DL Amex card that I don't use because I get better value from other cards. I get to the DM MQD with at least 1,sometimes 2 AF/KL/MU etc trips to top out my spend.
But I feel I am well-treated by DL -- when things go wrong I get what I think is relatively generous compensation -- vouchers and/or miles. Been allowed to change a few trips without penalty when there is a good reason.
The only thing I think I've missed out on are Porsche rides -- I've only had 1 although it was pretty neat to drive around JFK (T2 RJ maze to T4).
But I feel I am well-treated by DL -- when things go wrong I get what I think is relatively generous compensation -- vouchers and/or miles. Been allowed to change a few trips without penalty when there is a good reason.
The only thing I think I've missed out on are Porsche rides -- I've only had 1 although it was pretty neat to drive around JFK (T2 RJ maze to T4).
#8
Join Date: Jan 2013
Programs: Delta Skymiles, hilton Honors, Marriott Rewards, Hyatt
Posts: 156
You seem to be under the miss-information that CC spending is not valuable to Delta (and only those who pay money are). In the $DAL conference call they clearly stated they care not miles spent or money.
Those of use who earn status via card spend and such are just as valuable (if not more so) to Delta. Enjoy your earned perks!
Those of use who earn status via card spend and such are just as valuable (if not more so) to Delta. Enjoy your earned perks!
#9
Original Poster
Join Date: Aug 2016
Location: RDU
Programs: DL PM, Hilton Diamond, IHG Gold
Posts: 312
As someone who is a DM and a shareholder, I have to say that everything my DM flier side wants to see changed, my shareholder side rejects. And everything I want to see as a shareholder, my DM side takes issue with, I guess that means management is doing a good job balancing the wants of both audiences.
#10
Original Poster
Join Date: Aug 2016
Location: RDU
Programs: DL PM, Hilton Diamond, IHG Gold
Posts: 312
Will add the earnings releases to my calendar. Good way to stay informed and see their perspective.
#11
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Join Date: Aug 2009
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"Yeah, the way we think about it is, there is no difference between them. We want to get to the point where we're
just kind of indifferent whether a person uses miles or whether they pay cash, obviously from a cash perspective
that's different. But from us, as we measure financial performance and kind of our goals for what we're seeing in
the products in terms of performance we would think of them no differently." - Eric Phillips
Senior Vice President, Pricing and Revenue Management, Delta Air Lines, Inc.
#12
Join Date: Jan 2013
Programs: Delta Skymiles, hilton Honors, Marriott Rewards, Hyatt
Posts: 156
Or sometimes the facts are the facts! https://s1.q4cdn.com/231238688/files...Transcript.pdf
"Yeah, the way we think about it is, there is no difference between them. We want to get to the point where we're
just kind of indifferent whether a person uses miles or whether they pay cash, obviously from a cash perspective
that's different. But from us, as we measure financial performance and kind of our goals for what we're seeing in
the products in terms of performance we would think of them no differently." - Eric Phillips
Senior Vice President, Pricing and Revenue Management, Delta Air Lines, Inc.
"Yeah, the way we think about it is, there is no difference between them. We want to get to the point where we're
just kind of indifferent whether a person uses miles or whether they pay cash, obviously from a cash perspective
that's different. But from us, as we measure financial performance and kind of our goals for what we're seeing in
the products in terms of performance we would think of them no differently." - Eric Phillips
Senior Vice President, Pricing and Revenue Management, Delta Air Lines, Inc.
#13
Join Date: Aug 2015
Location: BUD
Programs: DL Gold, AS MVP Gold
Posts: 94
I think I am the ultimate valueless customer for Delta. I am PM also, and I live in Europe, so I don't need any MQDs. I reached PM just by flying many EU-US flights, mostly on AF/KL. Yeah, I flew all together 3 segments on Delta last year (didn't get upgraded), earning 83.000 MQM. And I spent about 3000$ on tickets (incl. taxes). If I were crediting these miles to Flying Blue, I would have not even earned SkyTeam Elite Plus.
#14
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As to the rest - I will stick with what the Delta rep stated - miles or cash are the same to them.
#15
Join Date: Mar 2018
Programs: SkyMiles 2018 PM, 2019 PM, 2020 PM, 2021 PM, 2022 PM, 2023 PM...
Posts: 314
"We want to get to the point..."
Your source clearly contradicts your assertion.
Your source clearly states that they want to get to the point where miles or cash are the same to them. It is clear that they are not in this position yet.