axis Magnus card devaluation - different dimension.

[luxveritate]

I have been reading about the huge disappointments related to the Magnus credit card and I found the axis bank is consolidating the whole credit card business in a well designed thought process. For any business to move forward it should make effective strategy to eliminate the bad usage and streamline the operation by identifying the right set of customers whom they want to provide the benefits in a step by step manner. I think Sept 1st is not going to be the final moment for Axis card but its a decisive moment in 4 aspects 1) identify by the card owners who use all means to spend to reach the milestone benefits - business cannot be retainable if its only based on milestones 2) through this process filter a group of potential customers who can migrate to Burgandy accounts and retain 10 L - for a banking institute this accumulates huge liquid cash flow & slowly these customers can even migrate to high cost cards also. 3) segregate customers not migrating to Burgundy yet who are loyal and capable of spending due to their own capacity rather than accelerated spending by looking at the shorter gains 4) step wise way provide a time frame for the bad accounts to cancel ( or strategic elimination ) and retain the good proportion of customers with the bank. This move is brilliant. as people who joined the card by looking only short time benefits will surely cancel it once the benefits are stopped. they are not loyal clients for banks and retaining them accumulate huge loss over the time frame !!! What next for the card? I believe we must provide a time frame to assess the scenario, bank like any financial organisation won't be in a position to loose good customers, in fact I think the bank will adopt different time bound strategy to increase the spending in the card with proper promotional campaigns which is more beneficial for the elite customer retention rather than giving 25K points on spending of 1 lac uniformly for all kinds of customers. bank can even work out differential strategy based on individual capacity of the customers. I had a talk with one of the team leader and he was assuring me that bank is evaluating all probable aspects of the decisions and all need to give sometimes to settle the dust and no financial organisation want to say good buy for majority good customers. considering the impact of September, I believe there will be some focused revisions to those customers who have not migrated to the burgundy as majority cannot invest 10 L for an account and its not worth also. this middle layers of customer are more revenue generators for the bak rather than just depending few % of Burgundy account holders. I would appreciate every ones thought procession what will be the next probable action for the Magnus ?

 

[WandereR]

Even if we do not consider the milestone removal, the redemption rate being slashed by half is the biggest reason for anyone to not continue with this card. They have increased the reward rate for higher spending but killed it for low spending totally IMO. Further, the renewal benefits are no more there and the charges have been increased too. Doesn't make sense at all. Had they removed just the milestone benefit, customers who used to rotate money via 3rd party sites to reach the milestone would've stopped.

 

[D₹V]

Le Sumanta : Don't be loyal to any bank 💀.

 

[luxveritate]

Even if we do not consider the milestone removal, the redemption rate being slashed by half is the biggest reason for anyone to not continue with this card. They have increased the reward rate for higher spending but killed it for low spending totally IMO. Further, the renewal benefits are no more there and the charges have been increased too. Doesn't make sense at all. Had they removed just the milestone benefit, customers who used to rotate money via 3rd party sites to reach the milestone would've stopped.

radical measures are needed to eliminate certain % of bad accounts and filter the right one. business cannot be run in accelerated way unless bank adopt new way to attract the customers. This is a very important point. why do someone need to join the new card when all benefits are eradicated?

 

[anilkrsh]

I have been reading about the huge disappointments related to the Magnus credit card and I found the axis bank is consolidating the whole credit card business in a well designed thought process. For any business to move forward it should make effective strategy to eliminate the bad usage and streamline the operation by identifying the right set of customers whom they want to provide the benefits in a step by step manner. I think Sept 1st is not going to be the final moment for Axis card but its a decisive moment in 4 aspects 1) identify by the card owners who use all means to spend to reach the milestone benefits - business cannot be retainable if its only based on milestones 2) through this process filter a group of potential customers who can migrate to Burgandy accounts and retain 10 L - for a banking institute this accumulates huge liquid cash flow & slowly these customers can even migrate to high cost cards also. 3) segregate customers not migrating to Burgundy yet who are loyal and capable of spending due to their own capacity rather than accelerated spending by looking at the shorter gains 4) step wise way provide a time frame for the bad accounts to cancel ( or strategic elimination ) and retain the good proportion of customers with the bank. This move is brilliant. as people who joined the card by looking only short time benefits will surely cancel it once the benefits are stopped. they are not loyal clients for banks and retaining them accumulate huge loss over the time frame !!! What next for the card? I believe we must provide a time frame to assess the scenario, bank like any financial organisation won't be in a position to loose good customers, in fact I think the bank will adopt different time bound strategy to increase the spending in the card with proper promotional campaigns which is more beneficial for the elite customer retention rather than giving 25K points on spending of 1 lac uniformly for all kinds of customers. bank can even work out differential strategy based on individual capacity of the customers. I had a talk with one of the team leader and he was assuring me that bank is evaluating all probable aspects of the decisions and all need to give sometimes to settle the dust and no financial organisation want to say good buy for majority good customers. considering the impact of September, I believe there will be some focused revisions to those customers who have not migrated to the burgundy as majority cannot invest 10 L for an account and its not worth also. this middle layers of customer are more revenue generators for the bak rather than just depending few % of Burgundy account holders. I would appreciate every ones thought procession what will be the next probable action for the Magnus ?

Can't agree more.. everyone who is furious in the forum about devaluation is the customer the bank truly wants to get rid of. The perfect customer of the bank is a HNI and most people still fail to understand that needs of an HNI are different.

 

[amit]

entry barrier, segregation, reward rate & Support

 

[CardsHoarder]

I would appreciate every ones thought procession what will be the next probable action for the Magnus ?

Too much wishful thinking. I am not counting on next set of improvements. I haven't heard of case where card was devalued and it later rewards were improved.

Also for a thoughtful post such as yours, why didn't you consider formatting it well to make it easier to read? I am sure you are aware of paragraphs.

 

[CardsHoarder]

The perfect customer of the bank is a HNI and most people still fail to understand that needs of an HNI are different.

What are HNI requirements? Just curious.

 

[rahulsethi]

Agree with the OP on most of the things but slashing the reward rate to half 2.4% it's lower than my Axis Vistara Infinite which comes with a renewal benefit and even my DCB which is LTF for me. Imo that and rescinding the renewal benefit is what will kill the card even axis loyalist will now shy away from the card, because it makes no sense now to non burgundy customers or those who have spends < 1.5 lakhs a month. Even the accelerated rewards are on incremental spends. Guess they had enough data to pinpoint and stop unfair usage of the card and could have stopped at milestone removal. That could have saved Axis from mass cancellations even from loyalists.

 

[rahulsethi]

What are HNI requirements? Just curious.

Lifestyle oriented benefits which this card still doesn't offer. 🤣

 

[luxveritate]

Friends did any one got any emails from burgundy private. I am not a burgundy customer nor i have any banking with Asia’s bank ..Mail read as follows “

An exclusive pre-sale for you!​ Ends on 19th July, 14:00 Hrs​ ​ Dear Client,​ ​ Get ready for the original classic of Broadway, West Side Story, brought to India for the very first time by the Nita Mukesh Ambani Cultural Centre.​ ​ Exclusive pre-sale window is now open for you for this limited show run.​

 

[D₹V]

Bruh, July is gone.

 

[neogen]

Friends did any one got any emails from burgundy private. I am not a burgundy customer nor i have any banking with Asia’s bank ..Mail read as follows “

​

​ An exclusive pre-sale for you!​ Ends on 19th July, 14:00 Hrs​ ​ ​ ​ ​ Dear Client,​ ​ Get ready for the original classic of Broadway, West Side Story, brought to India for the very first time by the Nita Mukesh Ambani Cultural Centre.​ ​ ​ Exclusive pre-sale window is now open for you for this limited show run.​

Yes and promptly deleted 🗑

 

[rogerthat]

I have been reading about the huge disappointments related to the Magnus credit card and I found the axis bank is consolidating the whole credit card business in a well designed thought process. For any business to move forward it should make effective strategy to eliminate the bad usage and streamline the operation by identifying the right set of customers whom they want to provide the benefits in a step by step manner. I think Sept 1st is not going to be the final moment for Axis card but its a decisive moment in 4 aspects 1) identify by the card owners who use all means to spend to reach the milestone benefits - business cannot be retainable if its only based on milestones 2) through this process filter a group of potential customers who can migrate to Burgandy accounts and retain 10 L - for a banking institute this accumulates huge liquid cash flow & slowly these customers can even migrate to high cost cards also. 3) segregate customers not migrating to Burgundy yet who are loyal and capable of spending due to their own capacity rather than accelerated spending by looking at the shorter gains 4) step wise way provide a time frame for the bad accounts to cancel ( or strategic elimination ) and retain the good proportion of customers with the bank. This move is brilliant. as people who joined the card by looking only short time benefits will surely cancel it once the benefits are stopped. they are not loyal clients for banks and retaining them accumulate huge loss over the time frame !!! What next for the card? I believe we must provide a time frame to assess the scenario, bank like any financial organisation won't be in a position to loose good customers, in fact I think the bank will adopt different time bound strategy to increase the spending in the card with proper promotional campaigns which is more beneficial for the elite customer retention rather than giving 25K points on spending of 1 lac uniformly for all kinds of customers. bank can even work out differential strategy based on individual capacity of the customers. I had a talk with one of the team leader and he was assuring me that bank is evaluating all probable aspects of the decisions and all need to give sometimes to settle the dust and no financial organisation want to say good buy for majority good customers. considering the impact of September, I believe there will be some focused revisions to those customers who have not migrated to the burgundy as majority cannot invest 10 L for an account and its not worth also. this middle layers of customer are more revenue generators for the bak rather than just depending few % of Burgundy account holders. I would appreciate every ones thought procession what will be the next probable action for the Magnus ?

What is your opinion now? Axis Bank does not care for any customer, good or bad. By drastically devaluing ALL their cards from the most premium Reserve or M4B to the most lowly IOCL or Freecharge, it looks like Axis Bank seriously wants all its customers, no matter how good they are with spending or loyalty, to close their cards/accounts and migrate.