greatmarko
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Post by greatmarko on Apr 1, 2017 8:22:48 GMT
It's called marketing. Budget is set aside for attracting new funds to the platform, over and above those already invested, and various different channels, routes, and promotions are tried and their successes measured. Those with the best ROI in both the short and long term will be prioritised over other promotions. If another platform were to offer a new account cashback bonus of, say, £200 if you registered a new account and deposited £1,000 then I would be surprised if anyone would argue that every single existing lender should also receive a £200 bonus to keep things fair. Temporary / promotional uplifts in rates should be viewed in the same light except the £200 bonus is proportional to the amount invested and the duration it's kept on the platform. The difference chris, is that other platforms offer "one time" bonuses, or "introductory" rates for a limited time. AC are offering certain customers a higher QAA rate "for life" whilst other customers retain a lower rate "for life". I don't think anyone would have an issue if you offered a "one time" bonus for new customers, or an higher "introductory" QAA rate that after a period of time reverts to the "standard" QAA rate. But this isn't just a "introductory rate" you're offering new customers for a limited time - it applies for the entire duration they are customers! This is pretty unfair to your existing, loyal, customers!  New customer "incentives" aside, I don't see why AC can't allow existing customers to go on to achieve the higher QAA rate after they've been active investors for a certain number of months/years? Why would you want to penalize existing customers rather than rewarding them for continued loyalty!?
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mason
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Post by mason on Apr 1, 2017 8:38:32 GMT
Budget is set aside for attracting new funds to the platform, over and above those already invested, and various different channels, routes, and promotions are tried and their successes measured. I have additional funds I'd be willing to add to the platform. How do I secure the promotional rate?
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jlend
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Post by jlend on Apr 1, 2017 8:46:43 GMT
I also have additional funds if AC have a promotional rate I can make use of
I am already a lender on AC.
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vmail
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Post by vmail on Apr 1, 2017 8:49:12 GMT
Every company does this. Loyal customers pays for new customers.
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mason
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Post by mason on Apr 1, 2017 8:54:30 GMT
Every company does this. Loyal customers pays for new customers. Not every company does this. But joining incentives are one thing. Lifetime incentives are another.
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n
Member of DD Central
Yet another Nick
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Post by n on Apr 1, 2017 9:44:04 GMT
I wonder if they only want a little extra investment from new people rather than the wall of money which would hit them from current investors if everyone received a higher rate?
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mason
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Post by mason on Apr 1, 2017 12:06:26 GMT
I wonder if they only want a little extra investment from new people rather than the wall of money which would hit them from current investors if everyone received a higher rate? I suspect if they reached out to their existing investors they could have got the desired amount of money for a much lower price. I agree they would have had to deal with a wall of money if they opened up this offer to all, suggesting they are paying far too much for the extra investment.
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Post by df on Apr 1, 2017 23:22:24 GMT
It is a standard marketing thing, some banks and other businesses do this. However, 3.75% is still great for instant access account with the benefit of returns from the cash that in other circumstances would've been idle. And banks get hammered for it. P2P is supposed to be different. Fairer, Growth, Together.
Not an Orwellian 'all lenders are equal but some are more equal than others'
Same risk, same rate.
I like the concept, but not all P2P follow this. For example, LC or ReBS have auctions which end up with lenders sharing the same risk, but the return isn't equal.
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Post by df on Apr 1, 2017 23:51:19 GMT
And banks get hammered for it. P2P is supposed to be different. Fairer, Growth, Together.
Not an Orwellian 'all lenders are equal but some are more equal than others'
Same risk, same rate.
It's called marketing. Budget is set aside for attracting new funds to the platform, over and above those already invested, and various different channels, routes, and promotions are tried and their successes measured. Those with the best ROI in both the short and long term will be prioritised over other promotions. If another platform were to offer a new account cashback bonus of, say, £200 if you registered a new account and deposited £1,000 then I would be surprised if anyone would argue that every single existing lender should also receive a £200 bonus to keep things fair. Temporary / promotional uplifts in rates should be viewed in the same light except the £200 bonus is proportional to the amount invested and the duration it's kept on the platform. I haven't seen any £200 bonus offers yet, but have received a couple of £50s. For me personally, one off bonus is more attractive than 0.15% extra :-) and it doesn't create any controversy... Why does QAA need additional marketing? It's a great product as it is :-)
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markr
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Post by markr on Apr 11, 2017 16:32:27 GMT
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Mick
Be nice... People respond.
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Post by Mick on Apr 13, 2017 9:54:31 GMT
They do it from time to time. Last time it was 4.25% for many weeks. Seems 30day AA interest increase. Promo.
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