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In this industry there have been a lot of people who just burn thru customers for the quick turn of the buck. It's part of why we have a bad reputation in general, and it's also responsible for where we are with things like Visa regulations.
In any other business, customer is king.
We've always used this methodology with our customers and we have guys that are still recurring dating back to the late 90's on some of our sites as a result. Those are no accident or simply forgotten cancellations as they update their cards when they expire. It doesn't cost near as much to go to the extra effort to treat a customer well, deliver what you promise and keep him coming back for more than it does to acquire a new customer....especially one that'll recur over and over.
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