Tag: Citi

No thank you to Citi “Thank You Points”

I used a Citi “Thank You” card as my main purchasing vehicle for maybe 10 years. Its attraction was that it credited travel points for miles on any airline (at the time, unheard of) and I amassed some 300,000 points and paid the $75 annual fee each of those ten years. Then, about a year ago, I happened to have a question about my account and the telephone rep told me that virtually all my points were expiring in 90 days. I could purchase travel for a future date but if I didn’t buy something before the deadline they were gone.

So, my wife and kid went to visit friends in Germany in high season at a ridiculous price and we used more points on a family vacation. There were still tens of thousands of points left over so I transferred them to a new, no-fee Thank You card and cancelled the paid card. A few months later that card’s points are about to expire so I have been scheming to get some value out of them. It’s an expensive time to book travel so I’m looking to buy gift cards for places where I spend money. Meanwhile, from Citi’s perspective, I’ve transitioned from a presumably profitable customer paying a high annual fee to a fee-free and soon to be ex-customer.

While I’ve been spending way too much time negotiating with the Thank You folks, I have wondered whether there are any useful marketing lessons to be gleaned. Certainly the strangest policy is to let points expire without notifying the customer. It’s not like you get an AAdvantage statement where you can see that you need to book travel before a certain date to keep your old points; the whole procedure is invisible unless you log onto their website. Why in the world don’t they send me notices that warn, “your points are about to expire, here are some great offers from our partners”?

And about that website. You can check your points from your Citi card login which takes you to a rather promotional and unhelpful website, but there is a shadow thankyou.com website that you will never see unless you establish a separate log-in with a username and password that have different rules from your Citi card login. Yet this secret handshake is required for certain privileges, such as redeeming for Amazon purchases which they offered me recently (that’s how I found out about the separate website). And I don’t consider myself a web troglodyte. What happens with people who barely know how to log on, or still do their business by phone?

Thus, when I got an invitation to take a survey and say how happy I was with Thank You Points, you can bet I swooped down on it like a hawk on a chicken. A few days later I got an email from a certain [redacted], inviting me to call her and explain why I would not recommend Thank You to a friend. Apparently she had tried repeatedly to reach me by phone, which is peculiar because my cell is listed in my Citi contact information and there is no record of calls from unidentified callers. I called her back and left a message, also emailed her, and she did not return my call or respond to the email. But I was more than ready to share my opinion, so I am doing it here. [UPDATE: she finally did call me. See the comment for an update, plus why it took so long.]

What can marketers learn from all this? First, the points expiration seems ridiculous, but any expiration must be treated as an opportunity to contact your customer. Not doing that is just crazy. It’s lost revenue and lost good will.

Second, byzantine websites that require the user to decode your intentions are not okay. (If you want to book travel, the main reason I got the card, that link is buried in the bottom menu of the page of “rewards” below bubbly cross-promotions.) If you aren’t willing to meet your customer’s needs with clean and logical navigation, they will go find somebody who will.

Third, don’t play games by telling me you’ve tried to contact me when you haven’t and then not responding to my calls and emails. That’s middle school stuff.

To be fair, I haven’t reported some nice transactions with Citi folks on the phone trying to solve these problems but neither have I described every problem I’ve had with this program; there’s lots more. Also, full disclosure, I bought Citi stock when it was in the toilet and have made enough to pay for the points I lost. But not for the aggravation.

Thank you for your business. Now goodbye.

The 5/22 mail brought a letter from AT&T Universal Card. I almost didn’t open it because it was preprinted “OPEN IMMEDIATELY: Important Account Notice” and had a preprinted first class indicia. Obviously, another of the cash advance check mailings I receive 4x a year or so.

But no. The letter inside began: “Citi, the issuer of your AT&T Universal Cash Rewards Card, has decided to discontinue this credit card for business reasons. Therefore, your account will be closed on 6/30/06. This letter outlines important information about he closing of your account.” And so it did… several single spaced paragraphs to inform me what happens to my cardmember benefits (mostly going away) and outstanding balance (it’s still there) before a final “thank you for your business” at the end.

Now let’s see here. I’ve had this card for maybe 20 years. As I recall it was a pioneer—the first high limit, fee free MasterCard. Over the years it changed hands several times and various institutions paid what would add up to several billion dollars for the customer portfolio and brand identification. And now suddenly it’s worth no more than a curt “thank you for your business” ?

Ironically, the very same day brought an email from AT&T Universal Card. They want to let me know that I should refinance my home at a low home equity rate through them because, as a Universal Card customer, “you’ve earned it!”

That quotidian email is an example of why marketers believe business relationships have value—especially when you have the kind of relationship that gives you legal permission to send an email solicitation to your customer list. Yet, I’m assuming this will be the last I hear from my friends at Universal Card. (The deadline for my loan application is 6/30, which makes sense because my card relationship goes kablooie then.)

Citi evidently believes the Universal Card no longer has any business value. I disagree. Anybody want to join me and take up a collection to buy the brand? I’m hoping $1000 will do it.

The price of security

I was recently a victim of identity theft. First, my credit card company called me wondering why I had been charging so much at walmart.com. When I said I hadn’t used my walmart.com account since 2004 (which I know because I keep all my old emails), they suggested somebody had gotten hold of my credit card info and suggested I cancel my account and get a new card. Which I did.

Then, a few days later, another call. Had I changed my billing address to somewhere in Arizona? No, I hadn’t, and the ability to do so meant that somebody had hacked my online account with the bank in a major way. This set off alarm bells requiring cancellation of the new card, plus alerts to the credit reporting bureaus of which maybe the worse repercussion for me, as a marketer, is that I am automatically removed from credit card solicitation lists for the next 5 years. (No more Capital One swipe samples for me!)

I thought the whole matter was handled just about right by CitiBank. They were efficient, not accusatory, and the paperwork required (two notarized statements from me) was tedious but reasonable under the circumstances. That got me thinking about what is the right balance between companies protecting themselves and providing benefits to consumers.

A serious lack of such balance was exhibited in my first purchase recently of a “digital edition” from Amazon. It came with onerous digital rights management (DRM) protection that requires me to go through a complex registration process, where I sign in with Adobe online, simply to be able to read the document I have paid for on my computer. It simply ain’t worth it, folks. I asked for my money back. Their rights are protected but they lose a sale. Good deal? Not for me, not for the publisher, certainly not for the author who probably has no idea this is going on.

Back in my “suit” days, I had a client who asked me if it would be a good idea to sign up with a bad check protection service which would make good any bogus paper in return for a 1.5 percent commission on ALL checks received. Sounded somewhat plausible until we did the math and found that the bad check problem was actually costing considerably less than 1.5% of sales.

People who make their living trying to cheat other people and businesses will probably find a way to do so, at least some of the time. A business needs to find a balance where it makes things somewhat more difficult for the bad guys without penalizing the average customer with unreasonable security measures. This is the same logic that applies when we talk to our clients about money-back guaranteed, isn’t it?

A money back guarantee, especially on a mail order or internet purchase, answers the big objection “what if I get it and I don’t like it after I see it?” Marketers who are reluctant to make guarantees are afraid that somebody is going to take advantage of them. But the bad guys will anyway… and meanwhile they’ve scared off a lot of potential customers who were on the fence.