Half Baked Idea: Long Term Rewards Accumulation

This idea may already be implemented by some groups, and I missed it, but I’ve noticed an issue with many rewards programs:

There is near zero incentive to continue spending once nearing the end of an accumulation period, while far from the next reward level.

Take Westjet, for example. If you spend the $3000 to reach silver tier, but have no hope of spending enough to reach the $5000 gold tier, any trip near the end of the current period would contribute only to the companion voucher accumulation. If you delay until the next year, you get to fly with the silver benefits earned from the previous year, while also contributing to your silver status for the following year. This should be considered a significant risk as,

  1. Delays in purchases could stack to the point of cancelling
  2. Without contributing to rewards status, some consumers will lack incentive to purchase upgrades
  3. Prematurely ending rewards perks leaves an opportunity for competitors to steal customers

This conflict of interest could be fixed with one simple change:

Continue reading “Half Baked Idea: Long Term Rewards Accumulation”