To the people who have an unending carousel of credit cards taken out to reap great rewards, American Express knows what you're doing.
Bloomberg's Jennifer Surane reports on AmEx's push to stave off credit card churning and reward its most loyal users.
At the heart of the issue are those alluring sign-on incentives. Like devouring an impeccably prepared delicacy, consumers are eager to come back for seconds, or thirds. Luring a potential cardholder to sign up has led to a wealth of enticing offers.
It's those offers that have points hounds leaping from one card to another as they garner some truly lucrative deals.
Surane quotes Doug Buckminster, president of global consumer services, who explains the moment is an "opportunity to use our analytics and technology to surgically remove gaming and reinvest in higher-quality, more loyal new customers."
According to the report, the plan here is two-fold: Analytics allow officials to hone in on those prolific card holders who are in it for the quick opening reward. These data tools, however, also target how the company might reward its holders to nurture loyalty over the long term.
The key is to use the data to spotlight those who walked through the figurative door long ago and pat them on the back with points for staying there.
[READMORE]READ MORE: The Best Business Credit Cards for Travel [/READMORE]
AmEx Chief Executive Office Ken Chenault also sounded off on the trend, via Bloomberg: "What will be interesting to see not just with Chase but with other competitors is what happens when the short-term incentives are dried up or what happens if people game the offers."
On a specifically travel side of things, AmEx is offering some mighty attractive rewards for those who like to turn purchases into future adventures: According to Bloomberg, AmEx Platinum card users will deal with a high annual fee but also receive $200 of free Uber rides. For those hopping around the country, this equates to a nice chunk of ground transportation.
The company is also offering an opportunity to garner five times the rewards points at various hotels as long as you use its website.
Credit Card rewards continue to be one of the key ways many book travel. With companies vying for a stake in the consumer market, it makes sense that a loophole would present itself.
As the report states, you can be sure that the days of lucratively playing hopscotch with card companies are numbered.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
