Virgin America Elevating Loyalty

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Virgin America's frequent-flyer population of 1.8 million is not only the industry's fastest growing - climbing at over 40% a year - they are also the most engaged. Virgin America's Elevate members spend 25% more with the airline than non-members, while nearly half have been active within the past 12 months compared to the industry norm of 33 percent. And how's this for devotion: a full 20% of Virgin America's loyalty members don't even live in cities served by the airline.

Watch the Director of CRM explain how:
http://forms.loyaltylab.com/vod_virginamerica

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Virgin America Elevating Loyalty

  1. 1. Tibco Now Customer Loyalty May 20111
  2. 2. Agenda• Who We Are• Our program• “The science”• “The art”• Results…and what’s next 2
  3. 3. Our Mission:  Make Flying Good Again• “Airlines score lower than IRS in customer  satisfaction”  ‐‐ USA TODAY Headline May 2007• The Virgin spirit breathes new life into  tired industries and is:  Entrepreneurial Innovative and tech‐savvy Guest‐focused Stylish 
  4. 4. Our Product is State of the Art “A Multi-million Dollar IPOD. That Flies.” –
  5. 5. New Generation Slim‐line Recaro Seats with Full Size Headrest in Coach
  6. 6. RED In‐flight Entertainment System:  Most Advanced Platform in U.S. Skies • 9” video touch‐screens  • Food and drinks on demand • 35 films and live TV  • 3,000 MP3s  • Video games   • Seat‐to‐seat “chat” • Kids’ entertainment   • Interactive Google Maps 
  7. 7. Virgin America’s Elevate Program Our first of its kind frequent flyer program started at the same time as  our flight launch – the first time in US airline history. Key pieces of the program: 1. Clear and simple proposition • Earn points for what you pay – 5 points for every $1 • Fly for as low as 2,500 points 2. Any seat, anytime rewards.  No blackouts. 3. One‐way redemptions always an option 4. Unique offerings beyond the traditional norm (special  events, Virgin partners, party with Sir Richard, etc)7
  8. 8. And now for the science……………… To match our innovation promise, we needed to find the right partner.8
  9. 9. Power our knowledge of our membership base Our guests are tech‐savvy, fashion forward, creative class.  And they are the  reason our airline is growing. Based on all of our guest touch‐points, we are using information stored and provided  by Tibco Loyalty Lab to continually optimize and refine our segmentation through: • Flight behavior • Demographic • Psychographic  • Reward behavior • Partner earn • Ancillary products • Social media 9
  10. 10. Deliver a proposition: Shouldn’t reward bookings be easy?
  11. 11. All you have to do is….toggle
  12. 12. Reward bookings:  Points display for flight selection exactly the same API to Tibco Loyalty Lab provides real- time pricing in seconds for all flight combinations
  13. 13. More science…….partnerships keep us top of mind with our members ‐ First no annual fee full earn airline Visa Signature card in the US ‐ 220+ earn partners, including Virgin Atlantic, Virgin Australia, hotel, car  rental, shopping, and lifestyle categories ‐ Members get exclusive discounts, access to special partner deals, and  invites to Virgin‐style events ‐ Partner setup “out of the box” from Tibco Loyalty Lab
  14. 14. …..And here’s the art Getting people to share this……. Embedded video youtube.com/virginamerica. 14
  15. 15. Campaigns and events that make people talk
  16. 16. Leveraging our tech‐savvy, social media base First airline to offer real points for virtual check-ins through Foursquare and Facebook Places Launched earning with Gilt Groupe Engaged members through WiFi promos and sponsorships Leverage social media for new city launches and unique benefits
  17. 17. What are the results? Guests who are loyal to our airline, not just to our loyalty program. • Our Net Promoter score is in the Top 10 of all companies in the US • Elevate members represent approximately half of our guests • Our membership is growing 40%+ per year • Elevate members are much more valuable than non‐members • Voted “Most Improved Program” by Smartertravel.com in 201017
  18. 18. What’s next? Fueling our guests passion for Virgin America is crucial for our success – but we have to continue to enable it.   • Loyalty innovation must stay fresh • Our program was more unique at launch – but we have to continue  to invest in it as competitors raise their game • Social interactions will continue to put control in the customers’  hands – and we’re all still learning • Enabling and encouraging customers to talk to each other – with  both good and bad feedback – adds to credibility • We must continue to complement and invest in the true  purchase driver: our product • More integration in the next phase of our Cabin with Red18
  19. 19. Thank you19

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