Why don't banks reward existing customers?

eskbanker

fenwick458 said:

I think the handing out of offers to "new customers" is going to be under review soon, banks probably seem to think they will get away with dishing it out to these "new customers only" for a bit longer yet, and probably seem to think that by offering it to existing customers too they will just be seen to be "taking the !!!!!!"

Why would you think that banks feel they're 'getting away with' anything in doing this?  It's widespread practice in numerous industries....

fenwick458 said:

the way I see it, (and it's complete conjecture and speculation) is that the people who organise these switch offers have absolutely nothing to lose, and only customers to gain. I don't know, maybe the money is drawn from a shareholder dividend pot, and theres no way it can cost them money? yet they might stand to gain bonuses from somewhere if they get x amount of new customers to sign up?

It's hardly rocket science that the purpose of switching incentives is to gain customers, and some employees will naturally be measured and remunerated on the success of such initiatives!  Obviously there's a cost involved, but there will be a cost/benefit analysis that models how much revenue can be obtained from each customer via follow-on sales of other products, etc, and also factors in how many switchers will only be in it for a short-term win before moving on, which is the prevailing model around here in this unrepresentative little bubble....

jimjames

fenwick458 said:

 They seem to be making the offers easier and easier to claim, for example a few years back you had to actually use the account and move a certain number of DD's, now it seems like you can just open one and get the bonus, and then you can close it...or switch again...

Out of interest which account have you transferred that just gives a bonus like that as I'd be interested in applying? Most recent one I did required 2x DD to be transferred, open savings account with money paid in and install their app. That was a bit more than "just opening"

[Deleted User]

eskbanker said:

Deleted_User said:

You are of little interest to banks unless they can make money from you.

You are of little interest to any commercial organisation unless they can make money out of you, even if some hide it better than others.

Welcome to capitalism....

A flawed system but the only one that seems to work.

[Deleted User]

colsten said:

Deleted_User said:

I do think it's sad that there has been a break down between customer and bank on a personal level. Now you have to be rich to speak to someone local on a regular basis. You notice a lot of these digital banks trying to make you feel special or part of something. You are of little interest to banks unless they can make money from you. And that is peanuts for most people, in the mind of the bank.

If speaking to a person is important to you, you could use First Direct, as they are still providing telephone support.

Though I am intrigued - what do you want to speak to someone in a bank about on a regular basis? Why do you think banks ever had anything other than making profits in mind?

Just the small things, when you used to visit a branch before internet banking and the like, you got to know the people on the counter, small talk etc.

Of course banks want to make money from you, but the people on the counter never used to be tied to targets or be as forceful in pushing products at one time, long ago. In terms of applications, they used to have more leeway in making decisions, taking in personal circumstances.

kaMelo

williewonder said:

Banks have switch offers, wine offers for new customers, etc. Why don't banks have rewards for existing banking customers?

Because they don't have to to keep their customers, the same with energy, mobile, phone and internet etc. People are inherently lazy and don't move providers because they cannot be arsed. Customers have billions of pounds in bank accounts offering no or very little interest, energy companies still have millions of people on standard tariffs, mobile companies have millions of customers ....... I could go on and on.

The bottom line is people are lazy and would rather whine about being a victim than being proactive and changing things.

Chino

williewonder said:

Why don't banks have rewards for existing banking customers?

Why, as a bank's (or banks') customer, do you crave a reward from your bank or banks? Why do you regard banking as anything more than a utility service? Do you expect a reward from your water company?

colsten

Why do people explain why banks don't offer rewards to existing customers, when in the very thread there is a list of the rewards banks do offer to existing customers?

callum9999

fenwick458 said:

I think the handing out of offers to "new customers" is going to be under review soon, banks probably seem to think they will get away with dishing it out to these "new customers only" for a bit longer yet, and probably seem to think that by offering it to existing customers too they will just be seen to be "taking the !!!!!!"
the way I see it, (and it's complete conjecture and speculation) is that the people who organise these switch offers have absolutely nothing to lose, and only customers to gain. I don't know, maybe the money is drawn from a shareholder dividend pot, and theres no way it can cost them money? yet they might stand to gain bonuses from somewhere if they get x amount of new customers to sign up? They seem to be making the offers easier and easier to claim, for example a few years back you had to actually use the account and move a certain number of DD's, now it seems like you can just open one and get the bonus, and then you can close it...or switch again...

I'd argue the exact opposite. There are always competition concerns from the financial regulators (hence the existence of the switching process in the first place), and encouraging people to switch their accounts largely satisfies that.

I have no idea why anyone would think a bank is "taking the !!!!" if they offered rewards to existing customers too? And these offers are presumably funded by dedicated funds or a marketing budget - there's not a "shareholders pot" staff can just grab money from if they want to have a big giveaway to earn themselves a bonus!

callum9999

colsten said:

Why do people explain why banks don't offer rewards to existing customers, when in the very thread there is a list of the rewards banks do offer to existing customers?

Because the list you produced is full of trivial rewards in comparison to the new customer switching bonuses? 

I know they're virtually useless to me... I have accounts with almost all of them but hardly use any of the things you mention.

IvanOpinion

williewonder said:

Banks have switch offers, wine offers for new customers, etc. Why don't banks have rewards for existing banking customers?

I have no idea what industry you are in but do you willy-nilly hand out money to your existing customers?  I am not talking of special offer leaflets etc. but simply go around your customers and say 'here have a few quid back for being a loyal customer'.