After looking at how the Bilt status tiers work, why doesn't every credit card issuer have some sort of status program? Even if they have a program a quarter as good as Bilt, think it would be a win-win for retention and rewards.
At lot of issuers give you something for spending $75,000 of spend (guest access for Amex and Cap1 lounges, hotel/airline status for Chase). If they just expand that downwards I think it would be a hit.
Look at Capital One for example. A status program could help people look past some of the program's flaws:
- You have to spend $75,000 on the card for unlimited guest access now.
- Lack of good domestic transfer partners.
- The point transfer rate for some of their better partners are poor.
They could have a Capital One Status program that could look like this (don't take this seriously, it's just a concept):
- $15,000 spend/yr for 2 Cap1 lounge passes
- $30,000 spend/yr to make transfer rate minimum 1 to 1 for all airline transfer partners
- $45,000 spend/yr to make points worth 10% more for domestic flights up to a cap.
- $60,000 spend/yr to make points worth 10% more for all travel in the portal.
- $75,000 spend/yr for unlimited Cap1 lounge guest access
Why doesn't every issuer have some status program?
byu/Few_Chip648 inCreditCards
Posted by Few_Chip648
4 Comments
Most companies probably see the complexity vs profit angle differently. Setting up status tiers means building whole new systems, tracking spend across multiple cards, customer service training, and managing expectations when people inevitably complain about not reaching tiers.
Plus many issuers already have their retention strategies – Chase has their relationship pricing, Amex does targeted offers and retention calls, etc. They might figure why build something new when existing methods work decent enough. The big spenders who hit $75k already get perks, and casual users might not care enough about status to change their spending habits anyway.
Your Cap1 example is interesting but remember they’re still relatively new in premium cards compared to Chase or Amex. They probably want to see how their current structure performs before adding more layers. Also building status programs that actually drive behavior is harder than it looks – needs to hit that sweet spot where benefits feel achievable but still profitable for them.
I can’t speak for anyone else, but I don’t like those kind of cards for two reasons. First, I don’t like feeling like I have to spend a certain amount on a card, because then I feel like I’m possibly spending money I wouldn’t normally spend.
Second, it just gets too complicated. I ditched my BILT card when they switched over to the new system, primarily because it was just annoyingly complex. I already didn’t like the original BILT card and how it encouraged you to use it more on certain days and also you had to use it a certain number of times a month.
I prefer having cards where you simply use a card for a certain type of spending and that’s it. I don’t like shifting categories or certain times of the month where I have to use one card over the other, or having to keep track of how much you spent.
I have one card where I aim for a certain amount of spending each year: my Amex Platinum and the $75k that lets you unlock free guests for the next year. That’s about as complicated as I want to get with these things.
Many banks do have a status program. For banks, it’s less about spend and more about AUM so that’s what they focus on.
* Citi has Citigold at 250K and 1M
* BoA has PR at 20K/50K/100K/1M (will be transitioning to 0/30K/100K/1M soon)
* Chase has JPM Private Bank. It’s requires about 10M in investable assets and you get the JPM Reserve Card.
* Schwab has bonuses at 250K/1M/10M
Amex’s banking side is much younger so you do see them focused on spend. Amex Plat was invite only when it launched and the Centurion Card is still invite only.
Because it’s absurdly complicated (and anyone saying BILT’s new structure is not is really just kidding themselves) and only appeals to niche hobbyists like on this sub.
The average person doesn’t want to deal with this. Retail banking tiered programs are as complex as the general public wants to deal with.