rewarding loyalty

ttellahzab

Hello All,

I've not been sure where to search of post for this information so i thought id just post it here under budgeting.

There is lots of talk about making the best of financial organisations (that's any, banking and facilities etc) by 'switching'. This is all very well and good but what happened to (if it ever actually existed) of rewarding a customer for sticking with one organisation. Not everyone one wants to be spending there time constantly monitoring for the best deal in things. There are better things to do with life.

Switching maybe easy these days but i really do believe that there is money to be made for organisations for loyalty!

Regard,
Barry

keiran

We are dealing here with financial organisations..bankers and the like

There is no reward for loyalty in finance in the UK

The main rewards to be had are only by switching

Even when they make some attempt at loyalty, it's of the form of 15% off the (overinflated) insurance quote


The Nationwide Building Soc makes much of its "mutual" status and not having to pay shareholders. But their products are no more attractive to customers than those offered by main banks

Archi_Bald

ttellahzab wrote: »

Switching maybe easy these days but i really do believe that there is money to be made for organisations for loyalty!

Never mind the money to be made for organisations. All I am interested in is the rewards they pay me for sticking with them.

Semple

What is this loyalty you speak of?

Loyalty rarely exists these days, and that even stretches into things like telecoms, broadband, tv packages.

Unfortunately businesses like to incentivise new customers by offering sign-up bonuses and the like, these never apply to existing customers, which then results in the savvy customers swapping services at the end of each contract to be eligible for new sign-up bonuses.

If businesses want to play a game, then their customers need to play the game as well. If you're not interested in spending a small amount of time swapping services, then you'll have to put up with continuing to pay whatever you agreed with in the first place.

eskbanker

ttellahzab wrote: »

Switching maybe easy these days but i really do believe that there is money to be made for organisations for loyalty!

It's easy when inside the MSE bubble to get the impression that everyone is frantically switching accounts all the time, but there were various press reports last year that about a million switches were done, which in turn obviously means that the vast majority didn't switch. Banks are astute enough to rely on this inertia without having to incentivise it by making loyalty payments....

Archi_Bald

Semple wrote: »

Unfortunately businesses like to incentivise new customers by offering sign-up bonuses and the like, these never apply to existing customers, which then results in the savvy customers swapping services at the end of each contract to be eligible for new sign-up bonuses.

Whilst you are in the main correct, it's worth pointing out that there are exceptions. For example, Halifax pay existing and new customers exactly the same for switching. Nationwide offers a whopping £100 to their existing customers for simply referring a switching customer.