What do you think about my idea - re Banking

eskbanker

Yes, for the avoidance of doubt I'm not banging the drum for Nationwide in any way and saying their approach to rewarding loyalty is anything more than tokenistic, just pointing out (in response to earlier questions) that they do have a product which is better (perhaps 'slightly less derisory' would have been more accurate!) for loyal customers than others, but clearly savvy forum members won't be anywhere near the Nationwide Loyalty ISA given the large number of more appealing products in the market....

meer53

Banks don't want to reward existing customers. they want new ones. Why would they want to reward existing ones ? I don't think your idea is going anywhere !

eskbanker

meer53 wrote: »

Banks don't want to reward existing customers. they want new ones. Why would they want to reward existing ones ? I don't think your idea is going anywhere !

To be fair, there are many organisations who do reward loyalty, whether that's airline frequent flyer schemes, supermarket loyalty/discount cards, season tickets for sports or transportation, etc, but historically (pre-CASS) bank customers have been less mobile and so banks haven't really had any incentive to try to keep them, because moving was such a pain.

The introduction of CASS was obviously intended to promote competition but the banks still don't seem massively bothered about losing customers, perhaps because the take-up of CASS has been so low....

EachPenny

meer53 wrote: »

Banks don't want to reward existing customers. they want new ones. Why would they want to reward existing ones ? I don't think your idea is going anywhere !

I suppose one reason might be to draw customers into increased contact with the bank (e.g. branch visits, website visits) to expose them to more marketing opportunities. A 'loyal' customer can be a 'new' customer if you are able to sell them other products they never previously thought about.

EachPenny

eskbanker wrote: »

The introduction of CASS was obviously intended to promote competition but the banks still don't seem massively bothered about losing customers, perhaps because the take-up of CASS has been so low....

...and because even if they suffer a net loss, most banks are still picking up large numbers of 'new' customers.

Possibly more profitable than the ones they lost.

colsten

nonesuch wrote: »

Actually some do... e.g. Barclays made available the double and triple blue rewards promo offers not only to new customers, but also to their existing customers. I normally get £12/month in blue rewards (reduced to £9 after I pay the £3 fee), pretty happy with that.. but I'm benefiting from the promo offer at the moment, for 12 months. Won't be leaving anytime soon.

The example you mention is a case in point where an existing customer get less than new ones. Anyone already on Rewards never qualified for the promo which pays £9 net a month.