High signup bonuses for new customers but not much for loyal customers. What can I do?

I’ve now accumulated around 700K or 800K points mostly thanks to Pointhacks… So a question. As a long time loyal Westpac customer I am excluded from their 100 000 point card whereas new customers who have shown no loyalty can go their hardest.

What do u think? Im going to take it up to them by going to the ombudsman?

I’m not sure that would do you any good. Taken directly from the ‘Financial Services Ombudsman Australia’ site under the heading, ‘Types of Disputes that we can consider’:

We may be able to help if you believe your financial services provider has acted unfairly towards you, for instance by:

  • breaking a law
  • breaching a relevant Code of Practice
  • not meeting standards of good practice in the relevant industry sector.
Westpac aren't breaking any law by excluding you from the promo, or breaching any codes of practice or anything like that. These promotions are geared towards growing their customer base by enticing new people who don't yet use their products to become customers. I agree, it doesn't reward your loyalty, but they see you as someone they've already got so they don't put so much emphasis on wooing you; you're already there.

The average person doesn’t come and go between banks as frequently as someone who flits from new card promo to new card promo for points might, and so they’re dealing with the average person. The average person can’t be bothered to switch unless there’s a problem, so in their mind you’re their customer already and unless they royally screw you over that’s unlikely to change and so they don’t need to make this offer available to you.

Hope that helps shed some light on things!

I agree with Jimmy. This is not a breach of the law or banking code of practice . It’s similar to how banks offer special deals like lower home loan interest rates or other incentives only for new customers . As Jimmy said; banks are like any business, they entice new customers through incentives. If you are a long term loyal customer you could ask for your annual fee to be waived

My 2 cts.

Unfortunately, ‘customer retention departments’ do not seem to have the budget size of ‘customer acquisition departments’ for similar reasons already mentioned by others.

That is the nature of the game, unfortunately. Loyalty is not valued as much in loyalty programs. Sounds funny but seems true at least for now.

I see at least 2 choices. Stay with Westpac and ask for incentives for staying (annual fee waived, bonus points) or take your business else where whilst getting signup bonuses.

The latter would free you up for any future Westpac sign up bonuses after typical 12-18 mth cooling period.