Key Takeaways
- Price walking defined: Price walking occurs when companies offer attractive deals to new customers but gradually raise prices or reduce benefits for loyal, long-term customers, effectively creating a loyalty tax.
- Impact on customers and brands: Price walking leads to customer churn, negative word of mouth, and erosion of trust and loyalty, especially in industries like financial services, where relationships depend on long-term commitment.
- Examples in practice: Common examples include introductory bonuses or low rates on bank accounts, credit cards, or investment platforms that later increase fees or rates without added benefits.
- Insurance industry response: While insurance has been a major offender, some companies are shifting toward loyalty programs, personalized pricing, and greater transparency to reward long-term customers and rebuild trust.
- The importance of transparency: Brands that are clear about pricing changes and reward loyalty can build stronger relationships, while hidden increases push customers to seek better deals elsewhere.
Listen: Stop the price walk: keep more of your clients.
You may not know the name for it, even I didn’t know there was a name for it at first. But, I did know I was tired of seeing new customers get better deals than I did. I started to feel like the longer I stayed loyal, the more I paid for it.
Turns out there’s a term for this: price walking.
It’s when companies in financial services (and beyond) offer great deals to new customers but let existing ones drift into higher prices or less favorable terms over time. And honestly? It’s a quiet loyalty tax. You stay, you pay.
How price walking happens
The tactic usually starts with good intentions: “Let’s incentivize new users.” Fair enough.
Acquiring new customers is expensive. But the problem shows up when no one’s paying attention to the other side of that equation: the folks who’ve already trusted you with their money, their data, and, in a lot of cases, their future.
Here’s what it looks like in the wild:
- A bank offers a $200 intro bonus on a new checking account, then that's the last bonus you will ever see from them.
- A credit card issuer offers 0% APR for 15 months post-application, then raises the rate to 25% once the term ends.
- An asset management platform offers no advisory fees for new investors under a certain threshold but starts layering on fees once they're in, even if the investor doesn't change behavior.
And here’s what happens next: price walkers are born. These are people who hop from provider to provider, always chasing the best intro deal because sticking around just doesn’t pay off.
The impact on loyalty, trust, and your bottom line
In an industry like financial services, where everything hinges on trust and long-term relationships, price walking sends the wrong message. It tells customers, “You mattered more to us before we knew you.”
This isn’t just a mild annoyance. It creates:
- Customer churn: People leave as soon as a better offer pops up.
- Negative word of mouth: No one wants to recommend a company that quietly raises prices over time.
- Brand erosion: A reputation for pricing games spreads fast, especially on social media and review sites.
And let’s be honest—most people don’t want to switch banks, insurers, or investment firms every year. It’s a hassle. But they do it because they feel like they have to in order to get the best deal.
How insurance is getting this right (and wrong)
Insurance is one of the most price-sensitive sectors out there. For years, companies have competed hard on introductory premiums, only to raise rates later—even for customers with no accidents or claims. This is where price walking has hit hardest.
But there’s also a growing wave of insurers doing things differently.
Some are starting to build loyalty programs and offer perks for staying, like accident forgiveness, decreasing deductibles over time, or bundling discounts that actually increase the longer you stay with the same provider.
Others are leaning into personalized pricing, where your rate is based on real-time behavior (like driving habits via telematics), rather than broad categories. That helps good customers avoid the silent penalty of being lumped into rising average rates.
Transparency is the real game-changer here. Companies that are up front about how rates are calculated and when they’ll change build trust. The ones that sneak in increases through renewal notices? That’s where loyalty goes to die.
It’s worth noting that some regions have started regulating this behavior. In the U.K., for instance, the FCA has banned price walking in home and motor insurance. That tells you how deep the issue runs and how badly consumers needed protection from it.
Asset management is a slower burn but just as risky
In asset management, price walking looks a little different. It’s not always about headline fees, but more so about the access and attention you receive.
New investors may get fee-free trading, onboarding incentives, or special content. Long-time clients, meanwhile, can find themselves shuffled to a generic service tier unless they keep increasing their assets under management.
But what happens when a loyal investor hits a financial rough patch and pulls back a little? Do they lose access to their advisor? Do they get pushed down to a robo tier with no human contact?
This is where firms risk alienating the very clients they’ve spent years building trust with.
Some firms are flipping the model and offering tiered loyalty structures:
- Lower fees for clients who've been with the firm for multiple years.
- Invitations to exclusive webinars or early access to new fund offerings.
- Proactive financial check-ins and not just when it's time to upsell.
These kinds of moves tell investors, “We value your loyalty, not just your balance.”
And in a world where financial advice is becoming more commoditized, relationships are the real differentiator.
What can be done in rethinking retention strategies?
To be clear, intro offers are not bad. They are necessary to be competitive in client acquisition. But if they come at the cost of treating long-term clients like afterthoughts, then the long-term cost to your brand will always outweigh the short-term gain.
Here are a few ideas to employ:
- Build retention into pricing strategy, not just acquisition.
- Audit pricing regularly to make sure loyalty isn't being penalized.
- Reward tenure with real benefits like lower fees, better service, and dedicated advisors.
- Communicate changes clearly. Surprises should be positive, not found in fine print.
Don't let loyalty be a liability for clientele
Every business needs to grow. But I’ve been on both sides, as a customer who felt burned and as someone who has worked with financial companies trying to do better.
What I’ve seen is this: long-term relationships are still the gold standard in this industry. But they only last when people feel seen, valued, and fairly treated.
Price walking breaks that bond. It tells customers they’re only worth a deal when they’re new. And that mindset pushes them to walk, not because they want to, but because staying loyal just doesn’t make sense anymore.
Fix that, and you don’t just keep customers; you keep relationships. And that’s worth way more in the long run.
About the author
With over three decades of experience working with Fortune 500 financial services companies, Kathleen brings a deep understanding of the industry's unique challenges and opportunities. She is known for her commitment to operational excellence and fostering collaborative, high-performing teams. At Aquent, Kathleen leverages her expertise in workforce solutions and talent matching to help clients navigate critical areas like digital transformation and AI. Whether the focus is on risk management, regulatory compliance, or enhancing customer experiences, she is dedicated to building trusted relationships and delivering solutions that drive businesses forward.
Latest.
How to reset culture through Creative Operations.
Insights from InsideOut, Leadership & Management, Consulting & Operations, Content & Creative
Why mental health benefits matter to freelancers.
Diversity, Equity & Inclusion, Leadership & Management, Retention Strategies, Talent Acquisition & Recruitment
The solo shift: What travelers are teaching every industry.
Consulting & Operations, Content & Creative, Experience & Product, Retail, Travel & Hospitality
