Tag: Loyalty

Posted on

Taking air travel and loyalty to new altitudes

view of the clouds from an airplane window

Airline loyalty programs have become a ubiquitous feature of the aviation industry globally. Most airlines, even the budget carriers, offer loyal travelers a range of benefits, from earning miles towards future flights, to access to airport lounges and priority boarding and seat selection.

But where did it all start? Which airlines were the first to introduce loyalty programs, and how have they evolved since then?

British Overseas Airways Corporation (BOAC), which operated from 1940 to 1974, did not have a formal loyalty program as we know them today. However, the airline did offer various incentives to its frequent flyers and regular customers.

For example, BOAC’s “Comet Club” was a social organization for the airline’s most loyal passengers, which offered exclusive access to special events, promotions, and personalized service. Additionally, BOAC provided perks such as preferential seating and priority boarding to its regular customers.

Concorde, the supersonic jet operated by British Airways and Air France, did not have a formal loyalty program. However, the airlines did offer various incentives to their most loyal customers to encourage repeat business and maintain customer loyalty.

For example, British Airways Concorde Room at London Heathrow airport was an exclusive lounge for Concorde passengers and elite frequent flyers. The lounge offered a luxurious experience with personalized service, fine dining, and other amenities.

Additionally, both British Airways and Air France provided special benefits to their top-tier frequent flyer members, such as priority boarding and access to premium lounges. While these perks were not specific to Concorde travel, they may have been particularly appealing to customers who frequently flew on the supersonic jet.

It’s worth noting that the concept of modern loyalty programs, with their points-based reward systems and other features, did not become widespread until the 1980s and 1990s when American Airlines introduced AAdvantage, the first frequent flyer program.

This was a groundbreaking innovation, offering customers the opportunity to earn miles towards free flights based on the distance they flew. The program was an immediate success, and other airlines quickly followed suit, with Delta introducing its SkyMiles program in 1981, and United launching MileagePlus in 1983.

Air Canada Aeroplan: Air Canada launched its Aeroplan loyalty program in 1984, making it one of the first airline loyalty programs in the world. The program offers rewards for flights with Air Canada and its partners, as well as for purchases made with Aeroplan’s partners.

British Airways Executive Club: British Airways launched its Executive Club loyalty program in 1985. The program offers rewards for flights with British Airways and its partners, as well as for purchases made with the program’s partners.

Qantas Frequent Flyer: Qantas, Australia’s national airline, launched its Frequent Flyer loyalty program in 1987. The program offers rewards for flights with Qantas and its partners, as well as for purchases made with the program’s partners.

Air France-KLM Flying Blue: Air France and KLM merged in 2004 and launched their joint loyalty program, Flying Blue, in 2005. The program offers rewards for flights with Air France, KLM, and their partners, as well as for purchases made with the program’s partners.

Lufthansa Miles & More: Lufthansa, Germany’s national airline, launched the Miles & More loyalty program in 1993. The program offers rewards for flights with Lufthansa and its partners, as well as for purchases made with the program’s partners.

Pan American World Airways (Pan Am) also had a loyalty program called Pan Am WorldPass. It was also launched in the early 1980s and allowed members to earn points for flights on Pan Am and its partner airlines. Members could redeem their points for free flights, upgrades, and other rewards.

These early loyalty programs were relatively simple, offering customers the opportunity to earn miles towards free flights, with additional benefits such as access to airport lounges and priority boarding added later. However, as the airline industry became more competitive, loyalty programs became increasingly sophisticated, offering a wider range of benefits and rewards to customers.

Today, airline loyalty programs are complex systems, with multiple tiers and a range of benefits designed to incentivize customers to fly more frequently and spend more money with the airline. These benefits can include free flights, upgrades, lounge access, priority check-in and boarding, bonus miles, and discounts on hotel bookings, car rentals, and other travel-related services.

One of the most significant developments in airline loyalty programs in recent years has been the growth of the internet and the rise of travel aggregators such as Expedia, Kayak, and Skyscanner. These platforms allow customers to compare prices and book flights from multiple airlines, making it easier than ever to find the cheapest flights.

This has presented a challenge for airlines, as they have had to find ways to compete with these platforms and maintain customer loyalty in a highly competitive market. One way they have done this is by partnering with travel aggregators, allowing customers to earn loyalty points when booking flights through these platforms.

Another approach has been to make loyalty programs more flexible and transparent, allowing customers to earn and redeem points across a wider range of airlines and travel partners. For example, many airlines now offer co-branded credit cards that allow customers to earn points towards flights and other rewards when making purchases outside of travel.

Some airlines have even gone further, offering loyalty programs that are not tied to flights at all. For example, Air France-KLM’s Flying Blue program allows members to earn points through a range of activities, including hotel stays, car rentals, and dining.

However, while airlines have been successful in adapting their loyalty programs to the changing market, travel aggregators continue to pose a threat to these programs allowing customers to compare prices and book flights from multiple airlines, these platforms make it easier for customers to find the cheapest flights, regardless of loyalty programs.

To counter this threat, airlines have had to find ways to make their loyalty programs more attractive to customers. This has included offering more personalized rewards and benefits, such as free flights and upgrades based on individual travel patterns and preferences.

Airlines also leverage the power of social media, with many airlines offering special promotions and rewards to customers who engage with their brand on platforms such as Facebook and Twitter.

By analyzing customer data, airlines can gain insights into customer behavior, preferences, and purchasing habits. This data can be used to personalize offers and rewards to customers, which can help to increase loyalty and encourage repeat business. For example, if an airline knows that a customer frequently travels to a particular destination for business, they may offer that customer bonus points for booking a flight to that destination.

Customer data can also be used to identify trends and patterns in customer behavior, which can inform marketing and business decisions. For example, if an airline notices that a large number of customers are booking flights to a particular destination during a certain time of year, they may adjust their pricing or schedule to better serve that demand.

Overall, customer data is critical to airline loyalty programs because it allows airlines to better understand and serve their customers, which can lead to increased loyalty and revenue.

If your business believes a loyalty program will help with growing your customer relationship then you’ll need a good source for customer data – Pretectum CMDM can help with your customer master data management needs. Contact us to learn more.

Posted on

Unlocking the Power of Customer Master Data: How at least one Retailer Loyalty Program Continues to Build a Successful Relationship with this Customer

crop unrecognizable person choosing christmas gifts in souvenir room

As a frequent high street shopper, I am always on the lookout for retailers that offer a customer loyalty scheme. For me, it’s not just about earning rewards, but also about feeling valued as a customer. That’s why I was thrilled when one of my favourite stores announced they were implementing a loyalty program. One that I quickly realised, relied on a customer master data management system (CMDM).

At first, I was a bit sceptical of their launch. I’ve been a member of other loyalty programs before, but they always seem to fall short of expectations. As soon as I signed up for this one, I knew it was going to be different. The enrolment process was simple, and I was able to link my account to my phone number or email address, so I didn’t have to worry about carrying around a physical card.

The first time I used my loyalty account at the point of sale, I was pleasantly surprised.

As soon as I gave the cashier my phone number, they greeted me by name and thanked me for my loyalty. It was a small gesture, but it made me feel appreciated as a customer. What’s more, the system automatically applied active eligible discounts to my purchase, so I didn’t have to remember to ask for them and didn’t have to produce any of those pesky coupons with annoying expiration dates.

Over time, I began to notice other benefits of the loyalty program. For example, I started receiving personalized recommendations based on my purchase history. If I had bought a particular brand of cosmetic in the past, the system would suggest other products from the same brand or category that I might like. I also received special offers and promotions that were tailored to my interests and preferences.

One of the most significant benefits of the program was the customer service. Because the system tracked my purchase history and preferences, the retail customer service team was able to provide me with a level of personalized attention that I had never experienced before especially when it came to returns or refunds.

For example, when I called to inquire about a product that was out of stock, the representative offered to have it shipped to me from another store and even waived the shipping fee as a gesture of goodwill.

As my loyalty to this retailer grew, so did my benefits. I was invited to exclusive events, such as product launches and in-store promotions, and was given early access to sales and launches. What’s more, the retailer began to offer additional rewards and perks to their most loyal customers, such as free samples, gifts with purchase, and even free shipping on all orders.

As I reflect on my relationship with this retailer, I realize that their loyalty program has been instrumental in building a special kind of trust and loyalty between us. By relying on what they know about me in the CMDM, the retailer is able to provide me with a personalized and seamless shopping experience that frequently exceeds my expectations. They demonstrate that they valued my business and are willing to go above and beyond to make me happy.

Of course, the retailer also benefits from our relationship. By tracking my purchase history and preferences, they are able to gain insights into my shopping habits and tailor their marketing and product offerings accordingly, I am sure I am spending more with them than I used to.

They are also clearly able to identify trends and patterns across others in their customer base, which helps them make data-driven decisions about everything from product development to pricing and what to pitch at me that I have never considered before.

Overall, I am grateful for the relationship that has developed between me and this retailer. Thanks to their loyalty program and the way they use their CMDM. I feel as valued as one can in a customer-retailer relationship. I feel that as a brand that they appreciate and support me as a customer. I know that I can count on them to provide me with a high level of service and quality products, and I am happy to return the favour by remaining loyal to their brand.

Bring on the rewards I say!

Posted on

Customer master data and business risk

flight airport airplane plane

One of the beauties, and curses of data, is that it is “what economists call a non-rivalrous, non-depleting and regenerative asset” or so Douglas B. Laney says on CIO Network.

Of course, he is not wrong, the way we house and maintain data today means that we can replicate copies of the data an infinite number of times and repurpose the same data artefacts for any number of uses.

This same characteristic of non-depleting and regenerative nature also represents one of the greatest commercial risks to businesses too!

A data leak is not only reputation-crushing for businesses, it is an embarrassment around data controls and privacy and may actually be accompanied by a host of penalties, fines and punitive litigation from the aggrieved parties, namely those whose data was leaked.

Many organizations rightly focus on risk management when it comes to customer data in particular. There is a flip side though. If you don’t have the data or don’t manage the data that you have what are the risks to your long-term business growth and sustenance of not capitalizing on the data that you have? No one disputes the importance of managing data well and no one denies that caution and care accompanied by risk assessment are important but failure to consider data as an asset is perhaps a greater cost to the business in the long run.

Data & Analytics Strategy Innovation Fellow at West Monroe, Laney says that “Forward-thinking executives have begun measuring the value of their organization’s data assets to forge a data-driven culture that generates increased business benefits from data.”

As an example, Laney cites that the Covid-19 pandemic struck United Airlines and American Airlines secured multi-billion-dollar loans with the aid of data. What did they do? They ‘simply’ used their MileagePlus and AAdvantage customer loyalty programs as collateral. Appraisals of the loyalty scheme data suggested that it may even have been worth two to three times the market value of the companies themselves.

These kinds of “infonomics”, where economic significance is ascribed to information, provide a framework for businesses to value data as assets. These can also be opportunities to sensitize business stakeholders and inspire executives to reevaluate the significance of the data at hand.

The data itself needs to come out of the shadows of the business and be placed appropriately where it can be leveraged to the greatest economic advantage of the business.

The business needs to know what the data is that it has, know where it comes from and where it goes. Most importantly it needs to understand who uses it, when and where and of what degree of suitability it is, for the tasks to which it is to be assigned. Part of this effort needs to be asserted in educating the wider business community on the data that the business holds near and dear accompanied by a rationale for preciousness.

Ultimately an education program that makes employees aware of the issues around appropriate data handling, suitability for purpose and data efficacy would form part of a data literacy program. The most important characteristic is that everyone understands that they are joint owners of the data and have varying degrees of responsibility to the business in the management thereof.

The most important lesson that the business community should come away with, is the understanding that IT cannot be the owners or responsible managers of the businesses data and customer data in particular

Learn how Pretectum’s CMDM can help your business not only manage your customer data but also in empowering and educate business teams in the use and control of the best possible customer data.