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> So she’s a marketing genius for selling $2300 of rewards for $450? They've done the math. They know how quickly the points will be spent (slowly). They prob
by mabbo 9y ago
> So she’s a marketing genius for selling $2300 of rewards for $450?
They've done the math.
They know how quickly the points will be spent (slowly). They probably have a deal that when you buy something with points, they don't have to pay the company itself for say 6 months, or maybe they get a discount on the service like 15% off. They could even decrease the value of points over time.
They also know that you'll renew, and they won't have to give you $2000 worth of points again. They know the probability of renewal for each customer, each year. Each time you do, the deal gets sweeter for them.
That's how someone can "give you $2300 for $450" and still make money.
- AFNobody 9y ago/r/Churning For some of us, taking VC/marketing money and laughing all the way to the bank is a hobby. I didn't renew my CSR or 3 other cards I had with chase. I walked away with ~$5k in benefits for ~$700. That doesn't even get into the free $$ from a bank account or the other stuff I've done in the past 12 months.
- r00fus 9y agoThe bet is that for each one of the /r/Churning crowd, there are many many more who are "followers" and simply get the card that their knowledgable buddy has - but less often, and only if the perk differential is dramatic. That is the market the CC companies want. You merely benefit from this by riding the crest of the wave.
- Kihashi 9y agoYeah, but there are plenty of people visiting /r/churning who are renewing the CSR (myself included) and that I think is a win for Chase. Right now, the math works out to keep putting spend on the CSR (along with Freedom and Freedom Unlimited). Granted, the math is different for everyone based on their locations, spending, and travel habits, but I think we'll see a decent number of renewals.