Airline loyalty programs has always been regarded as one of the most pioneered industry of all time, as they propel billions of dollars for those who do not leave any stone unturned in keeping their customers delighted. Over the years, it has become one of the top priorities for this industry to reward customers for their loyalty, that too in meaningful ways that resonate with their success.
It has become equally important for the airline brands today to analyze the effectiveness of loyalty programs and how it should uniquely be positioned within their marketing realm. Gone are the days, when loyalty program was structured only after keeping the view of competitive responses. Only constant experimentation is the key driver in hitting the right spot and determines the time to present to client’s/customers with the company’s offers which yield handsomely.
Like all the other elements of loyalty programs, it requires sheer planning and strategies to tap into the core elements that makes up for it to be successful, some examples to follow:
Experiment and innovate with various frequent flyer programs by rewarding travelers for using your services. To hit the sweet spot, learn from their history of transactions and formulate offers that suits individuals profile. In addition to that, use it to quantify the Customer Lifetime Value (CLV) to determine the best time to provide them with the company’s best offers.
Travelers likes miles as it gives them the ability to save up and redeem for their next trips that are on their cards. Hence, playing a key reason for many customers to opt-in for customer loyalty programs at first place.
With the use of mobile applications, evaluate the location of the departing passengers and notify them with dedicated personal messages concerning about their upcoming flights. This will include the time of boarding, departure time, and the concourse for boarding.
Offer rewards that justifies miles earned by the travelers. For example, the number of miles a customer earns depends on the distance of the route they flown to. In this case, accrual of points will not be justified for someone who travels with an economy class as they would get the same number of miles as compared to the late booking traveler who paid a hefty amount for the same. To address such issues, maneuver away from distance flown approach, and adapt to rewarding miles which closely matches to the price of a ticket.
Take your loyalty to the next level by introducing game-based activities which engages customers and motivates them to keep gathering miles. Once the gamification model gets in place, it can act as a treasure trove of information providing additional data of traveler’s behavior patterns which ultimately helps to sharpen the segmentation of customers and targeting strategy.
The ultimate success of airline loyalty programs relies on breaking away from the herd and offering differentiated programs that strike a right balance of rewarding customers and earning their loyalty, while also keeping costs down at the same time.