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WHY THE FUTURE OF LOYALTY PROGRAMS
  WILL BE POWERED BY SOCIAL MEDIA
              September, 2011
              www.SimpliFlying.com
Methodology


         Based on a survey of over 200 Frequent Fliers who fly at least 5 times a year

         Survey by Cranfield University offline with travelers, online on SimpliFlying.com,
         Flyertalk.com, Airliners.net and other aviation forums

         Number of airlines on Twitter from EezerDataLabs

         Figures from 2007, ladder and descriptions adapted from Forrester’s ACTAS Q4
         2006 Devices and Access Online Survey


www.SimpliFlying.com
Frequent Fliers are heavy Users of Social Media
                    0%   20%          40%            60%            80%   100%
       Facebook
        Youtube
       LinkedIn
         Twitter
     TripAdvisor
           Blogs
           Wikis
          FlickR
      FourSquare
           Other
        MySpace
           None
         Gowalla
             Digg
        GetGlue
           Loopt
                         However, Twitter and Foursquare still small...
www.SimpliFlying.com
And these numbers are steadily increasing!




www.SimpliFlying.com
So why do they follow airlines in Social Media?


    Mostly, they just want the
    latest updates from the
    airline about either news
    or the latest deals and
    competitions.




www.SimpliFlying.com
Frequent Fliers are very active online!


            Compared to the average
            consumer, frequent fliers
            are much larger
            consumers and creators
            of online content!




www.SimpliFlying.com
What do they do on social media?

                                       0%          15%           30%              45%   60%

         Sharing photos/videos
Providing feedback and ideas
      Checking in to locations
                  Writing reviews
                       Playing games
               None of the above

                              Ripe for crowd sourcing photos, videos and ideas!
www.SimpliFlying.com
Where do they look for tickets online?




          Almost twice the number of people are booking tickets on the airline’s
                 website compared to those checking out tickets there!
www.SimpliFlying.com
Factors that influence the decision to fly a
                         particular airline


         Reading about friends’
         experiences and ability to
         earn points/vouchers via
         social media sites affect
         the flying decision most
         heavily.



www.SimpliFlying.com
We just changed the game. Again.


          1.                          2.                                                              3.                          4.




 Challenge yourself            Learn how other                                              Share and challenge         Ask us how we can
 with one question each        airlines are driving                                        your team to incorporate     help, anytime you hit a
week about your airline's    business goals through                                         an idea in your strategy.          roadblock
  social media strategy.    social media innovation.
                                                                                                                                          Click to
                                                 The SimpliFlying iPhone App.                                                            download
                                                        Download now from the App Store.
Frequent Fliers are mostly enrolled in
                 multiple loyalty programs!
                             0%         15%           30%            45%         60%
                       2-5
                         1
       More than 5
                 None




                              >70% are part of more than two loyalty programs!
www.SimpliFlying.com
BUT there are problems!

                                          0%   15%   30%   45%   60%
  Difficulty in redeeming/earning points
     Too many conditions/restrictions
          Rewards which have no value
                   Points which expire
                   Not enough rewards
              Too much spam/junk mail
                           Joining free
                    No personalisation




www.SimpliFlying.com
How are loyalty programs faring in the social age?


      Even though the first
      Airline Twitter account
      has existed for a quarter-
      century less than loyalty
      programs, the number
      of airlines on Twitter is
      larger than those with
      loyalty programs.


www.SimpliFlying.com
So what REALLY drives loyalty?


         Cheapest fare is the least
         important of factors like
         customer service, earning
         loyalty points and onboard
         experience.




www.SimpliFlying.com
Would they join a social media loyalty program?

                              No
                             28%

                                        Yes
         A resounding yes!              72%




www.SimpliFlying.com
How would they like to earn
                       loyalty points via social media?


         Check-ins and
         recommending the airline
         to a friend score the
         highest!




www.SimpliFlying.com
Email: contact@simpliflying.com
Twitter: @simpliflying

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Why the future of loyalty programs will be powered by social media

  • 1. WHY THE FUTURE OF LOYALTY PROGRAMS WILL BE POWERED BY SOCIAL MEDIA September, 2011 www.SimpliFlying.com
  • 2. Methodology Based on a survey of over 200 Frequent Fliers who fly at least 5 times a year Survey by Cranfield University offline with travelers, online on SimpliFlying.com, Flyertalk.com, Airliners.net and other aviation forums Number of airlines on Twitter from EezerDataLabs Figures from 2007, ladder and descriptions adapted from Forrester’s ACTAS Q4 2006 Devices and Access Online Survey www.SimpliFlying.com
  • 3. Frequent Fliers are heavy Users of Social Media 0% 20% 40% 60% 80% 100% Facebook Youtube LinkedIn Twitter TripAdvisor Blogs Wikis FlickR FourSquare Other MySpace None Gowalla Digg GetGlue Loopt However, Twitter and Foursquare still small... www.SimpliFlying.com
  • 4. And these numbers are steadily increasing! www.SimpliFlying.com
  • 5. So why do they follow airlines in Social Media? Mostly, they just want the latest updates from the airline about either news or the latest deals and competitions. www.SimpliFlying.com
  • 6. Frequent Fliers are very active online! Compared to the average consumer, frequent fliers are much larger consumers and creators of online content! www.SimpliFlying.com
  • 7. What do they do on social media? 0% 15% 30% 45% 60% Sharing photos/videos Providing feedback and ideas Checking in to locations Writing reviews Playing games None of the above Ripe for crowd sourcing photos, videos and ideas! www.SimpliFlying.com
  • 8. Where do they look for tickets online? Almost twice the number of people are booking tickets on the airline’s website compared to those checking out tickets there! www.SimpliFlying.com
  • 9. Factors that influence the decision to fly a particular airline Reading about friends’ experiences and ability to earn points/vouchers via social media sites affect the flying decision most heavily. www.SimpliFlying.com
  • 10. We just changed the game. Again. 1. 2. 3. 4. Challenge yourself Learn how other Share and challenge Ask us how we can with one question each airlines are driving your team to incorporate help, anytime you hit a week about your airline's business goals through an idea in your strategy. roadblock social media strategy. social media innovation. Click to The SimpliFlying iPhone App. download Download now from the App Store.
  • 11. Frequent Fliers are mostly enrolled in multiple loyalty programs! 0% 15% 30% 45% 60% 2-5 1 More than 5 None >70% are part of more than two loyalty programs! www.SimpliFlying.com
  • 12. BUT there are problems! 0% 15% 30% 45% 60% Difficulty in redeeming/earning points Too many conditions/restrictions Rewards which have no value Points which expire Not enough rewards Too much spam/junk mail Joining free No personalisation www.SimpliFlying.com
  • 13. How are loyalty programs faring in the social age? Even though the first Airline Twitter account has existed for a quarter- century less than loyalty programs, the number of airlines on Twitter is larger than those with loyalty programs. www.SimpliFlying.com
  • 14. So what REALLY drives loyalty? Cheapest fare is the least important of factors like customer service, earning loyalty points and onboard experience. www.SimpliFlying.com
  • 15. Would they join a social media loyalty program? No 28% Yes A resounding yes! 72% www.SimpliFlying.com
  • 16. How would they like to earn loyalty points via social media? Check-ins and recommending the airline to a friend score the highest! www.SimpliFlying.com
  • 17.