Airline Redemption Opportunities Survey

Thought it might be interesting to update you on our recent redemption survey. Working in conjunction with Airline Information for the 6th Annual ARAC / FFP Mega Event in Montreal this year we surveyed attendess and found some interesting results.

The survey revealed that:

• 100% of airline industry respondents wanted to have more redemption content in their portfolios
• Only 50% have redemption offers which deliver them profits rather than costing them money
• Two thirds feel that customers who engage with a redemption programmes are more loyal to the core loyalty programme

It seems that airlines are starting to look into how effective redemption programmes are, as well as considering additional partners and methods of delivering content to customers, perhaps to widen programme appeal, so its not just frequent flyers that get value out of FFPs. This should be great for the not so frequent flyer, but also should provide even more benefit for frequent travellers!

If you want to see the full survey results and report please give me a shout.

Paul

Ailrine ancillarys set to soar

Even the Telegraph are joining the airline debate: http://www.telegraph.co.uk/travel/travelnews/8078219/Airlines-extra-charges-continue-to-soar.html

As Jay Sorensen rightly says, “the ancillary revenue movement is gaining strength”.

It is clear the ancillary revenue generated from unbundling is a necessity in order for low cost airlines to survive. However, what is also evident is the growing consumer and regulatory demand for transparency in additional costs.

It is crucial for the future of the industry that airlines act now to  add value to their ancillary revenue strategy; it should focus less on the baggage and credit card fees, and more on additional services and benefits offered to their customer base to enhance the customer experience and increase brand value. By analysing their customer data to develop insight airlines could offer relevant, bespoke benefits to consumers, such as travel insurance or wi-fi and airport lounge access.

Airline brands should concentrate on a return on  relationship with passengers then new, sustainable revenue should follow.

Space NK loyalty programme

Space NK launches loyalty programme

Cosmetic brand Space NK is introducing a loyalty programme in a bid to become the “market leader in beauty retailing”.

Space NK says the N.Dulge programme will reward customers for their loyalty and “make the Space NK shopping experience even more indulgent”.

It will also use the data collected through the programme “to interact with and develop a better understanding” of customers.

Customers will earn one point for every £1 spent on the brand in store or online and be rewarded with a £5 N.centive voucher for every 100 points.

Customers that spend more than £1,000 in a year will be upgraded to the N.dulge deluxe programme, which has additional benefits such as double reward vouchers.

Cardholders will also have access to additional benefits such as previews of new products, special events and sales, free samples and a complimentary subscription to Space NK’s beauty magazine, N.vision.

Space NK operates 60 own branded retail outlets in the UK and 18 in the US.

Lauri Vela, Space NK chief marketing officer, says “Space NK constantly strives to deliver the best in terms of expertise, product mix and in store experience to each customer – N.dulge is an extension of this philosophy and is our way of rewarding our customers for their continued loyalty as well as a way of inviting new customers in to experience our brand.

Original article: http://www.marketingweek.co.uk/sectors/fmcg/space-nk-launches-loyalty-programme/3019682.article

Whats loyalty got to do with banking?

Hi, this is my first post, only time will tell how many more there will be, any advice will be gratefully received!

My first thought is that the theory of customer loyalty is quite straightforward; a business that retains its customers for longer usually makes more money from them at lower cost than one that is constantly paying to acquire new customers.

However actually doing this, creating loyal customers, is not so straightforward.

In a recent survey, only 16% of customers said they felt a sense of loyalty to their bank (Thunderhead 2009). Considering the importance of bank products in supporting all aspects of people’s lives this makes bleak reading. This figure has no doubt been influenced by recent events, a theory supported by the fact that 66% of people trust banks less than they did 5 years ago (ICM, Feb 2010), however it still indicates that customers do not feel engaged by their financial services organisation.

A lack of engagement is feeding a lack of loyalty, with the aforementioned Thunderhead poll suggesting that 63% of consumers would consider swapping their primary banking institution, indicating that the need to develop a stronger rapport with  customers is more important than ever.

I’ve worked for a global bank and know how closely levels of switching and engagement are tracked, so its not a problem banks are unaware of… I’m not saying don’t focus on revenue, that would be crazy, but it would be great to see banks starting with the customer in mind, not just the bottom line.