It’s hard to believe that loyalty programs started thirty years ago. Thanks to the AA Advantage, others followed suite – and many of us have been lucky enough to cash in on “free flights” and other free perks over the past thirty years. In fact, the industry is already offering more than 70 major frequent flyer programs globally, with over 100 million members.
In the loyalty industry, namely with travel loyalty programs; It is important that the members are active and remain active, as it is not only important for the brands themselves, it is equally as beneficial for the partner brands.
One of the biggest benefits to both is the data that is generated about those customers. Once that information is gathered, communication can be appropriately targeted and customers can be approached with more relevant promotions and service offerings.
In a recent article titled “Customer Loyalty: Beyond Earning Miles” Layton Han, CEO of Adara Media discusses inventive ways several of the key players are getting the most out of their loyalty programs?and the existing members of those programs.
He also points out the importance of reaching program members online, especially in the travel category. According to a 2010 Frequent Traveler Survey from Loylogic the internet is the preferred medium by travelers, as 58% of travelers prefer to earn and redeem points or check loyalty program balances online, followed by mobile (20%), in store (11%), SMS (4%) and Facebook (3%).
If you are in the loyalty industry, or just want to learn more about it, we highly recommend that you read Layton’s article and discover ways to drive greater program activity.