I'm not a “buffet” type person. Those all-you-can-eat plans kind of gross me out when it comes to food. I'd rather get one of those tiny, overly-styled servings at a pretentious foodie restaurant. And, of course, I pay a ridiculous amount of money for my medallion of squab liver with rose petal foam.
But when it comes to data, I'm lining up at the feeding trough with the rest of the gluttons. And AT&T doesn't like that, according to Randall Stephenson, AT&T's CEO. Stephenson expressed regret earlier this week about offering an unlimited data plan for the iPhone. AT&T has since discontinued its initial $30/month unlimited data plan in favor of tiered pricing. But like many others, I'm a legacy user. I'm burning data at a flat rate, while AT&T has to pay for it at a variable rate, so I'm costing them money.
Some loyalty programs are making similar mistakes – United Airlines, American Airlines and Southwest got a shout out in the Chicago Tribune for offering “too good to be true” rewards for their airline credit card programs. Benefits include free bag check for up to eight travelers, cash back and enough bonus points to qualify for a free flight almost immediately.
As LoyaltyOne CEO Bryan Pearson points out in the piece, it's only a matter of time before the airlines figure out that – like AT&T – it's costing them more than it's worth to bring customers in. When it comes to rewards programs, it's easy to get so caught up in the excitement of offering compelling benefits that marketers sometimes forget to do a little basic math.
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