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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Discover Reward Changes Date:  6/19/2007  2:37 PM
Author:  Patzer Number:  254634 of 313069

The tiered rewards system is little use to me since I can just get the straight percentage back on my other cards. Anyone got any idea why Discover still does things that way?

Discover Marketing Guy: We're losing business to the competition because they don't make people wait through a 0.25% tier before paying a real cash back. We need to change something.

Discover Executroid: We can't afford to give up the tiers. It costs too much. Find another way to be competitive.

Discover Marketing Guy: How about if we offer 5% back on a limited amout of stuff but pack it with lots of conditions so we don't actually have to pay 5% on very much? Things like, change what purchases get the 5% every quarter, and make people sign up to get the 5%. If they don't sign up, they still get the cheapo tiered rewards. And just for laughs, we can advertise a 5% back gas card, but put a $1200 purchase limit so that we start paying 0.25% back on gas midway through the card year for most people. People are lazy, and we'll suck them into using Discover at 0.25% back because they're chasing that 5%.

Discover Executroid: Good work! Have a bonus!

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