Whether you’re just starting out in the hobby and have a year under your belt or you’re a long term veteran, we’re always on the lookout for ways to maximize our credit card rewards. While earning welcome bonuses is a fantastic start, there’s another valuable tool in our arsenal: the retention offer.
These are special incentives offered by credit card issuers to encourage you to keep your card open, especially when you might be considering canceling or downgrading. But how do you know if you’re a good candidate for a retention offer, and what’s the best way to ask for one?
Before we jump into all the nitty gritty details of how the retention process works, please take a quick second to join thePointsPage Community on facebook. it’s no secret that we’re trying to grow, and we’d love to see you in the group!
Why Do Retention Offers Exist?
As with any type of sales or customer-acquisition business model, the primary goal of the company is to grow or maintain their client base for the lowest cost possible. Sometimes this equates to utilizing online advertisements, commercials, boots-on-the-ground prospecting, or just old fashioned word-of-mouth advertising.
Whichever method a company chooses, the goal is going to be the same: increase income and decrease cost to acquire that income. So how do they know which method is best?
Over years and years of studies, reviews, and financial reports among all sorts of businesses, it’s consistently been shown that retaining a customer is much cheaper than having to go out and get new customers. The cost to simply keep a current customer happy, even if you have to incentivize them, is virtually always the least expensive and easiest route to go and these big businesses know it.
So, enter the retention offer.
These are strategic offerings given out to current customers who show a history of being profitable for the company in one way or another.
How Do I Qualify for a Retention Offer?
Before you send out a Secure Message or pick up the phone to ask a customer service agent for an offer, you should evaluate whether or not you’re a good candidate for one. Some common criteria that are considered when evaluating whether you’ll get an offer or not are:
- Your Spending Habits: Are you a frequent user of the card? Issuers are more likely to offer incentives to customers who generate significant transaction fees. If your card mostly sits in a drawer, your chances might be lower.
- Your Payment History: This is crucial. A consistent history of on-time payments demonstrates your reliability as a customer. Late payments can significantly reduce your chances of receiving any special offers. With some card issuers, paying off monthly charges in full vs spreading payments out can also be a factor (either positive or negative)
- Your Account Age: Generally, the longer you’ve held the card, the more valuable you are as a customer. Issuers are often more willing to retain long-term cardholders.
- Recent Spending on the Card: Have you made significant purchases on the card recently? What about smaller, yet consistent purchases throughout the previous year? This signals continued engagement and value to the issuer.
- Upcoming Annual Fee: The period around when your annual fee is due is the prime time to inquire about a retention offer. This is when you’re naturally evaluating the card’s value proposition, although in my experience you won’t be able to get a retention offer until the annual fee in question actually posts to your account.
- Previous Retention Offers: While not a hard rule, receiving a retention offer in the recent past might make you less likely to receive another one immediately.
- The Specific Card: Some cards, particularly premium travel cards with higher annual fees, are more likely to have retention offers available.
- Your Overall Relationship with the Issuer: If you have multiple cards with the same bank and a good overall relationship, this could potentially increase your chances. On the flip side, it could hurt your chances of an offer if the issuer believes you’re just trying to “game” the system.
Think about your situation honestly. Do you tick several of these boxes? Any of them? If so, it may be worth exploring the possibility of a retention offer.
The Art of the Ask: How to Inquire About your Offer
Now that you’ve assessed the potential of receiving an offer, it’s time to reach out to your credit card issuer and get the conversation started. Here’s a professional yet friendly approach you can take:
Identify the Right Time: As mentioned earlier, the weeks leading up to your annual fee posting are ideal to gauge the possivility of receiving an offer. This shows you’re actively considering the card’s value and are at risk of being lost as a customer.
Choose Your Communication Method: You typically have a few options:
- Phone Call: This is often the most direct and efficient method. Call the number on the back of your card and speak to a representative, letting them know that you have a renewal of your annual fee coming up and you’re considering your options about keeping the card or not. They’ll get you transfered over to a relationship specialist to continue the conversation.
- Secure Message: Many issuers offer secure messaging through their online portal or mobile app. This provides a written record of your communication which I find extremely important in this hobby. Also opt for a written response if you’re able to receive one.
- Live Chat: Some issuers have live chat options, which can be a quick way to inquire. Be warned, though, not all customer service reps are created equal and can give you false information from time to time. HUCA is a technique you can apply here until you (hopefully) get the answer you want.
Prepare Your Talking Points: You don’t need a script, but have a clear idea of what you want to convey. Be polite and professional, and follow along with this general playbook to try and edge out an offer:
- Express Your Satisfaction (If Genuine): Mention aspects of the card you appreciate (e.g., rewards program, travel benefits). This sets a positive tone.
- State Your Reason for Calling: Be direct but not demanding. For example, “I’m calling today as my annual fee is coming up, and I’m evaluating whether the card still aligns with my current spending and travel goals.”
- Inquire About Retention Offers: Gently ask if there are any retention offers currently available on your account. You can phrase it like: “I was wondering if there are any special offers or incentives available to encourage me to keep the card open for another year?” or “Are there any retention offers associated with my account at this time?”
- Listen Carefully: Pay close attention to the representative’s response. They might offer you points, a statement credit, a temporary spending bonus, or even a reduced annual fee.
- Consider the Offer: Don’t feel pressured to accept immediately. Ask for the details of the offer, including any spending requirements or timelines. Evaluate if the offer makes sense for your situation and offsets the annual fee. They’ll usually inform you that the offer is available at that time only and can’t be guaranteed if you call or chat back in the future, but I’ve personally found this is rarely, if ever, true.
- Negotiate: If the initial offer isn’t quite what you were hoping for, you can politely inquire if there are any other options available. However, avoid being aggressive or demanding. Remember, the representative is trying to help within the bounds of what they can offer.
- Be Prepared to Decline: If no suitable offer is available, or if you’ve genuinely decided to close the card, thank the representative for their time.
Document Everything: If you accept an offer, make sure you understand the terms and conditions. Note the date you called, the name of the representative, and the specifics of the offer. If you opt for a “Spend $x within y months” type of offer, keeping detailed records is extremely important, as they won’t extend that term if you fail to qualify before it expires.
General Tips: What's Worked for Me in the Past
Every one of these calls or chats can be different, and each customer service rep is different. I think a key component to keep in mind is that the offers themselves are auto-populated on your account, but it’s up to the customer service rep whether to play along and tell you it’s there or not.
If they’re having a bad day, if you’re rude, if it’s at the end of their shift and you’re their last call, well, they might blow you off. You can hopefully get around those particular issues with a HUCA attempt, but even that doesn’t always guarantee you’ll get the right person.
So, knowing that the offers are auto-populated and that there’s a degree of relationship-building in this process, here are some general tips that’ve helped me along the way:
- Be Honest: Don’t make up reasons for wanting to cancel if they aren’t genuine.
- Be Respectful: Customer service representatives are there to assist you. Maintain a polite and friendly demeanor throughout the conversation.
- Be Straightforward: Nobody likes having their time wasted at work, right? If you have no intent of actually keeping the card and will only agree to another year’s AF if you get a retention offer, be upfront about it. A phrase I’ve used in the past to help with this is:
“I appreciate your time helping with this request, but the only reason I’m calling today is to see if I have a retention offer on my card before I cancel it. I’ve read up on all the perks of the card and understand the value proposition, and I’m simply just looking to see if there’s a bonus attached to the account that’ll help me offset the fee.”
- Timing is Key: Calling too early before your annual fee is due might not yield results if there’s no offer attached yet.
- Not Everyone Will Get an Offer: Retention offers are not guaranteed. Don’t be discouraged if you don’t receive one, but understand that offers can come and go. Just because you didn’t get one today doesn’t mean you won’t get one tomorrow if you call back!
- Consider the Long-Term Value: Even without a retention offer, the card might still provide significant value through its rewards and benefits
Getting to the Point(s)
Evaluating your potential for a credit card retention offer and knowing how to ask for one is a valuable skill for any points and miles enthusiast. By understanding the factors credit-issuers consider and approaching the conversation strategically and politely, you can significantly increase your chances of unlocking a great offer to maximize the value you receive from your credit cards.
So, next time your annual fee is due for a re-up, take a moment to assess your situation – you might be pleasantly surprised by what you’re able to secure for a retention offer!
