@ottawa wrote:
@DMC wrote:I guess we need clarification on the loyalty part because I'm reading it differently from some of you guys who are reading it as only a fixed 10 points or $10 a year.
Happy AnniversaryEarn 10 points for every 12 months you stay with us. Think of it as an anniversary present, except you don't have to get us anything.However, I read it as 10 points for every 12 months as a cumulative number. So if you've been with them for 4 years, that's 4 sets of 12 months for 40 points or $40 a year.This is the relevant info for my relative who would get 5+92 points if they switch, note they're getting $5/mo Loyalty now (Telus counting them as joining May 2014). Yes $10/yr is much worse that $60/yr, and it's the dealbreaker for long-term customers I suspect.
But for a new signup it's still better than Lucky (as an example, and AFAIK).
Hmm, if it really is only a fixed $10 a year now for loyalty, then that's an awful and drastic change because I'm about to hit 5 years in March to earn $60 a year. Losing $50 a year by switching is not worth it at all. I guess the one time switching points is supposed to entice you of which I would earn 65 points, so would be temporarily ahead, but it'll be wiped out too fast losing $50 a year.
@DMC wrote:I guess we need clarification on the loyalty part because I'm reading it differently from some of you guys who are reading it as only a fixed 10 points or $10 a year.
Happy AnniversaryEarn 10 points for every 12 months you stay with us. Think of it as an anniversary present, except you don't have to get us anything.However, I read it as 10 points for every 12 months as a cumulative number. So if you've been with them for 4 years, that's 4 sets of 12 months for 40 points or $40 a year.
This is the relevant info for my relative who would get 5+92 points if they switch, note they're getting $5/mo Loyalty now (Telus counting them as joining May 2014). Yes $10/yr is much worse that $60/yr, and it's the dealbreaker for long-term customers I suspect.
But for a new signup it's still better than Lucky (as an example, and AFAIK).
@AE_Collector wrote:Both my accounts received the “Thanks for Switching” email today as well. If there is anything I need to give PM credit for it is being consistent! It doesn’t matter what is being offered, changed, given away etc…..
AE_Collector
So the cat's out of the bag (I received the same email notification for all 5 of my existing plans).... Here is my analysis of the net change vs the existing Rewards program:
1 Pt = $1
- Get 5pts for sign-up BUT LOSE all account credits (BIG LOSS for some, except for $5 worth) (This seems to replace the $10 referral bonus and is being given to all, even without a referral)
- Loyalty Perk - this seems to be a one time bonus for switchers only (vs ongoing as a fixed 1pt/mo as I first thought). This seems to offset any loss of account credits and/or old Loyalty Rewards. The longer you have been with PM, the bigger the one-time perk. As an offset to the latter, this is like PM pre-paying your old Loyalty reward. Divide this perk by your current Loyalty Reward rate to figure out the equivalent number of months you are getting "prepaid".
- Anniversary Reward points = < 1pt / mon (replacing the old Loyalty Reward) This is equivalent to $0.83/mo. This is a LOSS of up to $4.17/mon in year 5 and beyond.
- Autopay - replaced with 5% pts per amount spent monthly... If monthly plan is less than $40/mon, this is a LOSS, up to $1.50/mo). So, only a GAIN IF your plan is over $40. On the current most expensive plan of $70, that is only 1.5 pts ($) more.
- Refer-A-Friend - no change
- Community - no change (assuming PM uses the same formula vs existing Rewards customers)
So based on this, what is the benefit of the new rewards program for existing customers? What good reason would any existing customer switch? So, it seems there is a small advantage if you are far from earning the full Loyalty Reward under the old existing program, and more so if you are on a plan over $40, but it is still at the loss of you become a long-term customer.
EDIT: Correction to Loyalty + Anniversary Rewards comparison. Loyalty Perk is only a one-time perk for existing customers switching to the new rewards program and Anniversary bonus replaces the old Loyalty Rewards. The benefit of this is quickly offset by the lost of the old Loyalty Reward after about 14-16 months, depending on timing.
Because the new customer earns the Anniversary bonus sooner, they are ahead $10 after the first year over the existing customer, who only starts to earn the old reward after 12 months. So it takes the existing customer 28 months to reach the final break-even point. THEN the existing customer will earn more after that. This only applies in comparison to a recent customer just starting out before this new program took effect.
On the other hand, if an existing customer reaches the second anniversary, they now earn $24/yr ($2/mo Loyalty) vs $10 for the new Public Points program. So the benefits of the new Anniversary bonus vanishes after that (there are 3 cross-over points at 22 months (for the first breakeven point), then at 25 months (where you briefly fall behind) and at 28 months (when you finally break even and get and stay ahead). In other words, the closer you are to being a customer for 22 to 28 months, the less of a benefit is the new Public Points rewards program.
P.S. Based on this, it will take PM a LONG time (a few years?) before they reap the benefits of this program change. The savings to them are virtually nonexistent until about the 3rd year, depending on the number of switchers and the amount they have to pay out in Loyalty perks.
