LivingSocial, the second-biggest company in the daily deal space (behind Groupon), is pairing up with Chase to introduce its own line of credit cards. But the idea isn't as offbeat as it might first sound.
New customers are routinely wooed with special discounts for services like pay TV and newspaper subscriptions. Existing customers, on the other hand, can expect regularly escalating bills unless they put up a fight or beg for a price break. Why do businesses treat loyal customers this way?
“The problem for cable, satellite and phone companies is that they expect to get credit for things they’re expected to be doing … If you want me to be a loyal customer, you have to go beyond the things you’re supposed to do.”
Also: the sickest things people have done to save money, including wolfing down a Quarter Pounder that sat forgotten on a shelf—for five days.
“Infidelity often pays off better than blind loyalty.”
Based on the statistics, the recession has had a noticeable impact on babies, casinos, customer brand loyalty, and the church collection plate.
