Last week, I wrote a post sharing the results of 3 credit card retention calls, and many readers (including new-reader, Anastasia – welcome!) have reached out asking me for some of my tips and best practices when dealing with retention calls.
Managing 16 active travel credit cards is a lot, so I am diligent about logging into all of my credit card accounts every few days to make sure they are paid-off entirely, ensuring that none of them slip under the radar, resulting in a late payment fee.
Of course, I am human (an often sleep-deprived one), and it’s happened to me in the past, but luckily it usually only takes a quick phone call to have those fees reverse if you’re a customer in good standing.
When I logged into my American Express account today, I saw a balance of $95 on my Starwood Preferred Guest® Credit Card from American Express and I knew right off the bat that meant my fee for another year had hit… time flies!
Before this year, I haven’t had much luck with receiving generous retention bonuses from American Express, but it never hurts to try. When I made the call, I explained to the account specialist that I didn’t know what the future of the card would be now that Marriott and Starwood have merged, and I currently have both this card and the Marriott Visa, where I also just paid an $85 fee.
To my surprise, I was offered a $100 statement credit (which exceeds the $95 fee), and right as the word yes rolled off of my tongue, he added and said “or, I could offer you 10,000 Starpoints for keeping the card open(!!)” I typically value Starpoints at 2 cents each, so taking the points was a no-brainer to me!
My Retention Call Strategies
Timing: I usually make the call the week I see the annual fee post to my account. Some people prefer making the call a month before the year renews. It’s your choice.
Quick Tip: Your card’s expiration month printed on the front of your card is the month you’ll expect your fee to post, which makes it a bit easier to keep track of what’s coming up.
Be a Customer in Good Standing: Everyone’s retention offers (if any) will be different, depending on the spend you put on the card, your credit history, relationship with the issuer, etc. To increase your odds of a favorable offer, such as a waived annual fee, statement credit, or bonus points, be a good customer, which translates to paying your bill on time and in full each month.
Transfer to an Account Specialist: When I call, I tell the customer service rep that I am considering closing the account and that I’d like to speak to an “account retention specialist”, whose job is specifically to encourage you to keep your card open.
Know Your Card Benefits: Soak in as much info as you can about your card-member benefits and share your knowledge with the rep. For example, mention that you love the 4th night free hotel benefit, but are sad that the terms are changing in July. A prepared call is always a good call.
Mention Devaluations/Program Changes/Mergers, etc: Any change in programs outside of what your card offers is a good bargaining point. For example, if there was a stealth award chart devaluation not too long ago, or a merger is in the works (such as the current Starwood and Marriott merger), the issuer may extend a retention offer so that you have some time to use the card during the program adjustments.
Choose the Right Offer: It can sometimes take some fast math to pick an offer right on the spot. I’d recommend being prepared with what you value points vs. cash, for instance. In my example from today, 10,000 Starpoints points is worth ~$200 to me, so I knew right away to choose that over the $100 statement credit (which is still a great offer).
Know When To Pay the Fee:Â There’s been many times where the card benefits have been so valuable (such as a free annual IHG night for a $49 annual fee and a Hyatt free night for a $75 fee), that I really would never close the account, even without a retention offer. Like anything in life though, the answer is always no if you don’t ask ;).
Lastly, Be Friendly: I’m sure connecting with your customer service rep counts for something.
Bottom Line
It’s nice to have a nice mix of travel credit cards with diverse benefits, but paying a lot of fees each year can start to burn a hole in your pocket, especially if you’re not truly making use of the card benefits. Retention offers are like biting into a box of chocolates – you never know what you’re gonna get!
What have your retention offers been like recently? Any other strategies worth mentioning? Feel free to share in the comments!
Thank you for reminding me to do this… I never even think to ask
Np! Sometimes a quick call is totally worth it xo
Honest to God, I have a retention offer reminder in my Google calendar for today because the AF is due on my SPG Amex. This is fantastic timing Angelina – thank you. And to think I was assuming there would be no was I’d get any sort of offer. Now I know to dig in!
Awesome! Good luck. Crossing fingers for you :)
How active had you been with this card in the last few months? My SPG annual fee is also coming up this month, but I haven’t used it in at least 3 or 4 months, so I’m wondering how much retention luck Ill have.
Thanks!
Ive put only one $1500 per month recurring charge on there for the past 6 months
Thank you so much for posting your results! My SPG fee is coming up and the end of the month, so I figured I’d call on the way home from work. I received the same retention offer!
Yesss! Great news, congrats!
Argh! Emboldened by your success I just called and they had zero for me. I have not been active on the card but very active on DL Plat. I’m going to call them soon.
Oh bummer! Crossing fingers for you for the DL plat!
My SPG Business card’s annual fee posted two weeks ago, and I called AmEx this morning, noting my concern about the future of Starpoints with the Marriott merger. The retention officer said, “while I wait for your account information, do you mind telling me a little bit about your business?” I spend a little more than $1,000 a month on the card, and about half is spent at Marriott hotels. I simply said, “I do some consulting.” The retention officer said, “I’ve always wanted to do that myself. Do you mind giving any advice?” I offered a brief response and then waited for him to read me the offer. He said he could offer a $25 statement credit. I asked if he saw any offers for Starwood points. “No. Unfortunately, we cannot offer Starpoints.” He concluded that Starpoints would continue for at least another year. I accepted the $25 statement credit, and reported it here in the hope it helps another reader.
I’ve never had much luck with AmEx and my run continues. Called in for my SPG Business card and was told that they don’t really have a retention department and the front line rep couldn’t do anything either. I’ll give them another call in the morning.
Thanks for this post, Angelina! My Delta Amex fee is coming up in April, so I’m gonna make a call using this new-found advice (though I’d much prefer to do this via their online chat, but I”m guessing a call would work better…)
Just a quick question: when you say pay your bill in full, I assume you mean paying the minimum monthly payment (and not incurring a late fee) rather than not carrying a balance on the card at all?
Have you ever had an offer of a reduced interested rate as a retention offer? I’ve had a reduced interest rate on new purchases on my Delta Amex for a few months, but it’ll be up in May; I wonder if I can convince them to extend it by saying I was offered a different CC with no interest for X amount of time?
Thanks!! I talked about the merger, and how I “organizing my wallet”, she offered the 25$, I was hesitant, then she found the golden ticket, the 10k!!! I really want to try to go the this event Chicago Seminars, Ive never been to anything like it before. Have a great day!
Hi! Do you use Mint? You put all your accounts there and you can see the latest charges on your accounts with one refresh.
Anyway, thanks for this post! Very informative.