Even in your DVD store example a competing DVD store or streaming service could offer you a sign up bonus or discount if you could prove you had €5 or more credit with the store that went out of business.
This makes no sense at all, why should a company give me some credit based on credit I had with another company that is even out of business? I could see it working if the two companies are competitors, but if one of the two is out of business it isn't a competitor anymore.
why should a company give me some credit based on credit I had with another company that is even out of business?
Because the more credit that person had with the other business the more valuable the customer would be to have.
but if one of the two is out of business it isn't a competitor anymore.
There are still other competitors who will be fighting over all of the customers looking for a new a company to replace the one that went out of business.
There are still other competitors who will be fighting over all of the customers looking for a new a company to replace the one that went out of business.
Then you don't need to prove prior credit with another company: the competing companies could just offer some free credit to new customers, as companies indeed already commonly do.
Comments
This makes no sense at all, why should a company give me some credit based on credit I had with another company that is even out of business? I could see it working if the two companies are competitors, but if one of the two is out of business it isn't a competitor anymore.
Because the more credit that person had with the other business the more valuable the customer would be to have.
There are still other competitors who will be fighting over all of the customers looking for a new a company to replace the one that went out of business.
Then you don't need to prove prior credit with another company: the competing companies could just offer some free credit to new customers, as companies indeed already commonly do.