Flying Jet Airways: Is it really a privilege<br />By:<br />ShubhadipBiswas<br />1<br />
About<br />Major Indian airline based in Mumbai, Maharashtra<br />Market leader in the domestic sector.<br />Operates over 400 flights daily to 67 destinations worldwide.<br />Main hub is ChhatrapatiShivaji International Airport, with secondary hubs at Delhi, Chennai,Ahmedabad, Bengaluru, Pune and Kolkata.<br />2<br />
Seamless service helping in facilitating CRM<br />Creating value for its shareholders and the economy<br />The aim is to provide a flawless service to the customer, external and internal.<br />The employees must know their customers.<br />Abridging the gap across departments and across destinations as one strong chain.<br />Providing services to the customers in a effective manner<br />RESULT: The loyalty rate will automatically be increased<br />3<br />
The loyalty program of Jet Airways--- ‘Jet Privilege’<br />5 Membership tiers—<br />Elite tiers--platinum, gold, silver--specially created for most frequent flyers. <br />blue plus and blue<br />The Dynamic Tier Review (DTR) System –<br /> DTR evaluates a member's tier based on Tier Points and Tier JPMiles. <br />4<br />
The loyalty program of Jet Airways--- ‘Jet Privilege’<br /> Tier Points / Tier JPMiles /Tier Upgrade <br /> 6-month 12-month <br /> Fast Track Fast Track<br /> Upgrade Upgrade<br />Blue to Blue Plus 5/ 7500 Not Applicable<br />Blue Plus to Silver 15/ 22500 20/ 30000<br />Silver to Gold 30/ 45000 40/ 60000<br />Gold to Platinum 45/ 67500 60/ 90000<br /> <br />5<br />
The loyalty program of Jet Airways--- ‘Jet Privilege’<br />Facility:<br /><ul><li>Tele check-in
Guaranteed reservations upto 24 hrs prior to departure
Special partner benefits etc.</li></ul>6<br />
The loyalty program of Southwest Airlines --Rapid Rewards Program <br />With SWA travelers earn points not miles.<br />7<br />
Comparison of flat loyalty program—by TESCO and tier system of JET AIRWAYS<br />Loyalty program by Tesco--flat one. <br />This program is a way of learning about how consumers shop and what they want from their retailer <br />Not just changing the one-to-one communication with the customer but changing the physical retail offer.<br />It is directed at costs and benefits of an offering and not at the brand itself. <br />Therefore, consumers are likely to switch once they perceive alternative offerings as being superior with respect to the cost-benefit ratio.<br />8<br />
Comparison of flat loyalty program—by TESCO and tier system of JET AIRWAYS<br /><ul><li>Jet Privilege offers 5 membership tiers.</li></ul>Benefit of JET PRIVILEGE :<br /><ul><li>concentrates on a company’s most valuable customers, may create more value at a lower overall program cost
It is a way to shift a customer into a partner
It is a type of Affective loyalty which relates to a favorable attitude towards a specific brand
private label programs is the idea of recognition - "I'm a Gold customer.
Customers wear their recognition badge with honor. After all, it says that "I am important.“</li></ul>9<br />
Comparison of flat loyalty program—by TESCO and tier system of JET AIRWAYS<br /><ul><li>Labeling the tiers in status-signaling names (e.g., silver, gold, platinum) makes consumers more sensitive to program hierarchy.</li></ul>Basic benefits:<br /> Shift - Acquire new customers <br /> Lift - Increase the spending of existing customers <br /> Retention - Improve the natural churn rate of customers <br /> Profit mix - Shift spending to higher margin products<br />10<br />
Comparison of 3 tier system and 5 tier system<br /><ul><li>How big of a gap exists in the benefits offered to the different tiers does not matter much to consumers.
Consumers feel good when they are in elite group
Adding a subordinate elite tier enhances their perceptions of status
Inclusion of two more tires will help to discriminate customers in a better way
The intention is to make them feel specially rewarded for their high level of loyalty</li></ul>11<br />
Aggregate loyalty offering the right solution for Indian market<br /><ul><li>Indian markets are huge and diverse,
It is quite challenging to understand each customer individually.
Indian customers can be broadly classified into two categories—</li></ul>averse to change and is less experimental in nature<br />Choosy and no emotional bond<br />In this type of scenario open loop-aggregation<br />loyalty scheme is the best choice--“sharing of the<br />customer’s wallet”. <br />12<br />
Aggregate loyalty offering the right solution for Indian market<br /><ul><li>Encourage the customer to spend where we want them to spend.
complimentary and non-competing partners who can add value to the customer experience are chosen to participate in the program.