Chase crackdown on affiliates / alleged gaming?
Jun 4, 2013, 7:14 pm
#16
Join Date: Apr 2004
Programs: AA, UA, SQ, VA, QF, AF, BA
Posts: 2,865
US Bank is my favourite. I have 2 cards with them, both of which I am planning to pay the annual fee and keep. They are also the ones I will fall back on with normal spending once I have finished churning the others and dumped them before the annual fee. The main reason is the anniversary bonuses and in the case of Club Carlson the free award night deal. I'm keeping the Lifemiles Visa as the annual fee is offset by the anniversary miles. Neither of these cards offer affiliate links that I am aware of. They get their customers from the airline/hotel websites and word of mouth. Since they aren't paying a commission to a middleman, they can afford to give the customer a better bonus. The other cards with anniversary bonuses are with banks that have some affiliate links on some products but not on the anniversary cards. Examples are Priority Club Visa and US Mastercard from the 2011 deal.
Not sure if there are other anniversary bonus cards, I only checked the programs I am collecting miles and points in. Affiliate links attract churners, anniversary bonuses attract long-term customers.
Not sure if there are other anniversary bonus cards, I only checked the programs I am collecting miles and points in. Affiliate links attract churners, anniversary bonuses attract long-term customers.
Jun 6, 2013, 4:26 pm
#17
A FlyerTalk Posting Legend
Join Date: Apr 2001
Location: PSM
Posts: 69,232
That event is much less focused on consumers/end-users than the others in the market.
Jun 9, 2013, 8:50 am
#18
Moderator: Travel Buzz
Join Date: Aug 2012
Location: Sunny San Diego
Posts: 3,095
US Bank is my favourite. Since they aren't paying a commission to a middleman, they can afford to give the customer a better bonus.
Not sure if there are other anniversary bonus cards, I only checked the programs I am collecting miles and points in. Affiliate links attract churners, anniversary bonuses attract long-term customers.
Not sure if there are other anniversary bonus cards, I only checked the programs I am collecting miles and points in. Affiliate links attract churners, anniversary bonuses attract long-term customers.
Now, granted, not everybody uses affliliate links, whether blogs, FT, creditcards.com or Amazon.com. Plenty of people respond to targeted marketing, too. So they have to have an average cost to obtain a new customer, overall, and then category break downs. That said, I'm surprised they are not more aggressive on their own web sites to solicit customers. Maybe that's the clue that it is really NEW customers they are after, not simply spreading the wealth to the same customers.
Jun 9, 2013, 10:10 pm
#19
Join Date: Feb 2009
Posts: 3,737
I agree-- think of it in terms of real dollars-- if a 50000 point signup bonus is worth $500, and an affiliate referral is $200-- the bank is $700 into the deal when you are approved and meet your spend requirements. At a 3% return on card spend, you'd have to spend $21,000 just for the bank to break even.
Now, granted, not everybody uses affliliate links, whether blogs, FT, creditcards.com or Amazon.com. Plenty of people respond to targeted marketing, too. So they have to have an average cost to obtain a new customer, overall, and then category break downs. That said, I'm surprised they are not more aggressive on their own web sites to solicit customers. Maybe that's the clue that it is really NEW customers they are after, not simply spreading the wealth to the same customers.
Now, granted, not everybody uses affliliate links, whether blogs, FT, creditcards.com or Amazon.com. Plenty of people respond to targeted marketing, too. So they have to have an average cost to obtain a new customer, overall, and then category break downs. That said, I'm surprised they are not more aggressive on their own web sites to solicit customers. Maybe that's the clue that it is really NEW customers they are after, not simply spreading the wealth to the same customers.
Jun 10, 2013, 11:40 am
#20
Join Date: Nov 2011
Posts: 6,385
I agree-- think of it in terms of real dollars-- if a 50000 point signup bonus is worth $500, and an affiliate referral is $200-- the bank is $700 into the deal when you are approved and meet your spend requirements. At a 3% return on card spend, you'd have to spend $21,000 just for the bank to break even.
Now, granted, not everybody uses affliliate links, whether blogs, FT, creditcards.com or Amazon.com. Plenty of people respond to targeted marketing, too. So they have to have an average cost to obtain a new customer, overall, and then category break downs. That said, I'm surprised they are not more aggressive on their own web sites to solicit customers. Maybe that's the clue that it is really NEW customers they are after, not simply spreading the wealth to the same customers.
Now, granted, not everybody uses affliliate links, whether blogs, FT, creditcards.com or Amazon.com. Plenty of people respond to targeted marketing, too. So they have to have an average cost to obtain a new customer, overall, and then category break downs. That said, I'm surprised they are not more aggressive on their own web sites to solicit customers. Maybe that's the clue that it is really NEW customers they are after, not simply spreading the wealth to the same customers.
Jun 11, 2013, 11:07 pm
#21
Moderator: Travel Buzz
Join Date: Aug 2012
Location: Sunny San Diego
Posts: 3,095
I would say banks cost to acquire points is between 0.5-0.9 cents. So somewhere around 250-450. Remember, for every x cardmembers, there's going to be the one who maxes out his/her credit limit and pays 19.99% interest, which covers nearly all the costs. You also have to remember the people that don't meet the spend, the people who actually keep the card because they like the bennys and pay the annual fee, etc.
Jun 12, 2013, 9:30 pm
#22
FlyerTalk Evangelist
Join Date: Sep 2000
Programs: UA Million Miler (lite). NY Metro area.
Posts: 15,069
The other piece is how many customers are really negative LTV, and is it worth the hassle to "out" them? I could imagine that the pool of people who come in via the points and miles blogs is more "churner-heavy" (and therefore more likely to have negative LTV customers), but if the vast majority are net-positive, why rock the boat?
I'm guessing the banks are putting the pressure on the bloggers to stop encouraging churning behavior. If Chase goes the same route as Citi, they're going to start closing accounts too. Maybe it's time to start spreading out my credit card spend (on legit sales).
d
Jul 12, 2013, 6:21 pm
#23
Join Date: Jul 2013
Posts: 1
Bolding mine. The term seems to be disappearing from the blogs.
I'm guessing the banks are putting the pressure on the bloggers to stop encouraging churning behavior. If Chase goes the same route as Citi, they're going to start closing accounts too. Maybe it's time to start spreading out my credit card spend (on legit sales).
d
I'm guessing the banks are putting the pressure on the bloggers to stop encouraging churning behavior. If Chase goes the same route as Citi, they're going to start closing accounts too. Maybe it's time to start spreading out my credit card spend (on legit sales).
d
Jul 12, 2013, 9:34 pm
#25
Join Date: May 2008
Location: BOS/SIN
Programs: SQ
Posts: 2,704
Bolding mine. The term seems to be disappearing from the blogs.
I'm guessing the banks are putting the pressure on the bloggers to stop encouraging churning behavior. If Chase goes the same route as Citi, they're going to start closing accounts too. Maybe it's time to start spreading out my credit card spend (on legit sales).
d
I'm guessing the banks are putting the pressure on the bloggers to stop encouraging churning behavior. If Chase goes the same route as Citi, they're going to start closing accounts too. Maybe it's time to start spreading out my credit card spend (on legit sales).
d
Hopefully no one will fall for these tricks
Jul 25, 2013, 2:27 pm
#26
Join Date: Feb 2012
Posts: 8
US Bank is my favourite. I have 2 cards with them, both of which I am planning to pay the annual fee and keep. They are also the ones I will fall back on with normal spending once I have finished churning the others and dumped them before the annual fee. The main reason is the anniversary bonuses and in the case of Club Carlson the free award night deal. I'm keeping the Lifemiles Visa as the annual fee is offset by the anniversary miles. Neither of these cards offer affiliate links that I am aware of. They get their customers from the airline/hotel websites and word of mouth. Since they aren't paying a commission to a middleman, they can afford to give the customer a better bonus. The other cards with anniversary bonuses are with banks that have some affiliate links on some products but not on the anniversary cards. Examples are Priority Club Visa and US Mastercard from the 2011 deal.
Not sure if there are other anniversary bonus cards, I only checked the programs I am collecting miles and points in. Affiliate links attract churners, anniversary bonuses attract long-term customers.
Not sure if there are other anniversary bonus cards, I only checked the programs I am collecting miles and points in. Affiliate links attract churners, anniversary bonuses attract long-term customers.
- Chase Southwest
- Chase Marriott
- Barclays US Airways
And plenty others
All have affiliate links with annual benefits.
You may want to fact-check before making. assumptions.
