Low Value Customer

Old Jan 13, 19, 12:42 pm
  #1  
Original Poster
 
Join Date: Aug 2016
Location: RDU
Programs: DL PM, Hilton Silver, IHG Gold
Posts: 305
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.

Last edited by Psyduck1; Jan 13, 19 at 12:48 pm
Psyduck1 is offline  
Old Jan 13, 19, 12:47 pm
  #2  
Suspended
 
Join Date: Aug 2009
Location: Look up - On a ✈ DELTA ✈ jet NOW!
Programs: Blogger & Delta Diamond Medallion Million Miler
Posts: 4,178
Originally Posted by Psyduck1 View Post
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?
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!
Renes Points is offline  
Old Jan 13, 19, 12:50 pm
  #3  
Original Poster
 
Join Date: Aug 2016
Location: RDU
Programs: DL PM, Hilton Silver, IHG Gold
Posts: 305
Originally Posted by Renes Points View Post
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!
Interesting. I think most cut off the spend after they hit $25K and move to a better earning card. How valuable do you think each MQD waiver is to delta? Seems like a steal for me.
Psyduck1 is offline  
Old Jan 13, 19, 12:54 pm
  #4  
Suspended
 
Join Date: Aug 2009
Location: Look up - On a ✈ DELTA ✈ jet NOW!
Programs: Blogger & Delta Diamond Medallion Million Miler
Posts: 4,178
Originally Posted by Psyduck1 View Post
Interesting. I think most cut off the spend after they hit $25K and move to a better earning card. How valuable do you think each MQD waiver is to delta? Seems like a steal for me.
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).
Renes Points is offline  
Old Jan 13, 19, 1:04 pm
  #5  
Original Poster
 
Join Date: Aug 2016
Location: RDU
Programs: DL PM, Hilton Silver, IHG Gold
Posts: 305
Originally Posted by Renes Points View Post
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).
Gotcha. I guess if you look at mix I'm probably a one off so immaterial to delta.
Psyduck1 is offline  
Old Jan 13, 19, 1:06 pm
  #6  
 
Join Date: Dec 2018
Location: The ATL
Programs: Delta DM, Marriott Lifetime Titanium, HHonrs Diamond
Posts: 475
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.
FlyBitcoin is online now  
Old Jan 13, 19, 1:09 pm
  #7  
 
Join Date: Dec 2002
Location: Washington, DC
Programs: DL Diam 2MM (2.3), HH Gold, PC Gold, Hyatt Plat
Posts: 5,134
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).
mot29 is offline  
Old Jan 13, 19, 1:11 pm
  #8  
 
Join Date: Jan 2013
Programs: Delta Skymiles, hilton Honors, Marriott Rewards, Hyatt
Posts: 150
Originally Posted by Renes Points View Post
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!
I listened to the most recent call and didnít exactly hear that! It might be informative to read their financial statements as well. Sometimes we hear what we want to hear.
DougSkymiles is online now  
Old Jan 13, 19, 1:23 pm
  #9  
Original Poster
 
Join Date: Aug 2016
Location: RDU
Programs: DL PM, Hilton Silver, IHG Gold
Posts: 305
Originally Posted by FlyBitcoin View Post
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.
Absolutely! Most of what delta rolls out disappoints me as a customer but seems like a no brainer to me on the business side.
Psyduck1 is offline  
Old Jan 13, 19, 1:26 pm
  #10  
Original Poster
 
Join Date: Aug 2016
Location: RDU
Programs: DL PM, Hilton Silver, IHG Gold
Posts: 305
Originally Posted by DougSkymiles View Post

I listened to the most recent call and didnít exactly hear that! It might be informative to read their financial statements as well. Sometimes we hear what we want to hear.
Will add the earnings releases to my calendar. Good way to stay informed and see their perspective.
Psyduck1 is offline  
Old Jan 13, 19, 1:32 pm
  #11  
Suspended
 
Join Date: Aug 2009
Location: Look up - On a ✈ DELTA ✈ jet NOW!
Programs: Blogger & Delta Diamond Medallion Million Miler
Posts: 4,178
Originally Posted by DougSkymiles View Post

I listened to the most recent call and didn’t exactly hear that! It might be informative to read their financial statements as well. Sometimes we hear what we want to hear.
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.
indufan likes this.
Renes Points is offline  
Old Jan 13, 19, 1:39 pm
  #12  
 
Join Date: Jan 2013
Programs: Delta Skymiles, hilton Honors, Marriott Rewards, Hyatt
Posts: 150
Originally Posted by Renes Points View Post
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.
His 2nd sentence here states it clearly, ď...would like to get to the pointĒ. I realize you make money this way, but please inform yourself with the various financial statements.
DougSkymiles is online now  
Old Jan 13, 19, 1:53 pm
  #13  
 
Join Date: Aug 2015
Location: BUD
Programs: DL Gold, AS MVP Gold, TK Elite Plus
Posts: 71
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.
e30st is offline  
Old Jan 13, 19, 2:01 pm
  #14  
Suspended
 
Join Date: Aug 2009
Location: Look up - On a ✈ DELTA ✈ jet NOW!
Programs: Blogger & Delta Diamond Medallion Million Miler
Posts: 4,178
Originally Posted by DougSkymiles View Post
I realize you make money this way, but please inform yourself with the various financial statements.
I never buy or sell $DAL stock (nor any airlines stock) and if I had this past year I would be very sad.

As to the rest - I will stick with what the Delta rep stated - miles or cash are the same to them.
Renes Points is offline  
Old Jan 13, 19, 2:14 pm
  #15  
 
Join Date: Mar 2018
Programs: SkyMiles 2018 PM, 2019 PM, 2020 PM
Posts: 287
Originally Posted by Renes Points View Post
As to the rest - I will stick with what the Delta rep stated - miles or cash are the same to them.
You are intentionally avoiding the following words:
"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.
Wimsta is offline  

Thread Tools
Search this Thread
Search Engine: