Cards w/ signup bonuses?

[revvystoke]

Why would the companies want to offer larger sign up bonuses for their existing products? I can see the incentive to do so if a competitor releases a competing product, but for the long term, wouldn't it be better spend money otherwise used on larger bonuses to improve upon the card's rewards structure so the card is more attractive for the average consumer to use over the long term vs the relatively short intro periods?

[xerostatus]

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@revvystoke wrote:

Why would the companies want to offer larger sign up bonuses for their existing products? I can see the incentive to do so if a competitor releases a competing product, but for the long term, wouldn't it be better spend money otherwise used on larger bonuses to improve upon the card's rewards structure so the card is more attractive for the average consumer to use over the long term vs the relatively short intro periods?

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You used "average consumer" and "over the long term" in the same sentence together....

The average consumer is a blind mouse sniffin' out that short-term cheese.

Everything is impulse, and we want sooner, bigger, more, etc.

[longtimelurker]

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@revvystoke wrote:

Why would the companies want to offer larger sign up bonuses for their existing products? I can see the incentive to do so if a competitor releases a competing product, but for the long term, wouldn't it be better spend money otherwise used on larger bonuses to improve upon the card's rewards structure so the card is more attractive for the average consumer to use over the long term vs the relatively short intro periods?

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Good question!   So two of the big bonuses for a while have been the CSP and Barclays Arrival.   Barclays is still a fairly recent entry into the US market (although a global giant) so I assume it is doing this to gain market share.

And I don't know how common CSP really is in the wider world (here everyone has it or wants it) and it might be competing, for example, against the better-known Amex Plat.    Many people here get it for the bonus and then downgrade when the AF hits, but that might not be so common "out there" in which case the bonus might be small against the gained revenue.

I would assume that the banks don't keep loss-making promotions for ever (but perhaps that is wrong)

[Themanwhocan]

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@xerostatus wrote:

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@revvystoke wrote:

Why would the companies want to offer larger sign up bonuses for their existing products? I can see the incentive to do so if a competitor releases a competing product, but for the long term, wouldn't it be better spend money otherwise used on larger bonuses to improve upon the card's rewards structure so the card is more attractive for the average consumer to use over the long term vs the relatively short intro periods?

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You used "average consumer" and "over the long term" in the same sentence together....

The average consumer is a blind mouse sniffin' out that short-term cheese.

Everything is impulse, and we want sooner, bigger, more, etc.

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Nothing wrong with a bit of short term cheese.

Why, my first real job was scraping cheese mold. Then I quickly moved up to cutting the cheese. Heck, they had to shut down the guy working the machine next to me, because I could really cut the cheese.

Strangely enough, I don't miss that job. Ah well, thats Wisconsin for you.

[longtimelurker]

It has to be asked.  What color was the mold?

[Themanwhocan]

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@longtimelurker wrote:

It has to be asked.  What color was the mold?

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Some gray, some normal white cheese mold.

It was for the government cheese program.

[longtimelurker]

Oh, I was expecting your love of a certain color came from that experience, but apparently not.

[Themanwhocan]

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@longtimelurker wrote:

Oh, I was expecting your love of a certain color came from that experience, but apparently not.

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no, it wasn't blue cheese. it was good Wisconsin Cheddar.