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Your 3 Step Check for FFP Success

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Do your frequent flyer program (FFP) rewards engage all of your customer groups? Try our 3-step check to find out.

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Your 3 Step Check for FFP Success

  1. 1. A three step check to Frequent Flyer Program Success 2 3
  2. 2. FREQUENT FLYER PROGRAMMES (FFPs) ARE COMPLICATED BEASTS
  3. 3. THEY VARY BY SIZEAND BY REGION
  4. 4. and of course... VARY BY people
  5. 5. PEOPLE ARE UNIQUE
  6. 6. SO IT’S SILLYTO THINK THAT your SAME REQUIREMENTS FFP MEMBERS WILL HAVE THE
  7. 7. MEMBERS HAVE DIFFERENT FLYING PATTERNSAND DIFFERENT REDEMPTION RATESAND LEVELS
  8. 8. IT’S REALLY NOTA ONE SIZE FITS ALL SOLUTION 987654321 10
  9. 9. SO, HOW DO YOU MANAGE THESE MULTIPLE Requirements?
  10. 10. AND HOW DO YOU KEEP YOUR MEMBERS ENGAGED AND DRIVING REVENUE? £ € ++
  11. 11. THE FIRSTSTEP IS SIMPLE
  12. 12. DATA!
  13. 13. gives you valuable information about your customers DATA!
  14. 14. DATA!THE ACTUALLY ARE in your program will tell you whoyour members
  15. 15. how frequently THEY FLY their regular destinations what purchases they make
  16. 16. This allows you to segment your customers into different groups
  17. 17. Engagement (points redemption) Low High Low Not worth pursuing? Encourage to redeem High Keep in touch Love them! Frequency of Flying For example, some airlines are already segmenting their customers like this:
  18. 18. BETTER TArget your promotions With this INSIGHT YOU CAN
  19. 19. TAILORED PROMOTIONS AND OFFERS BY OFFERING
  20. 20. This helps to increase personalisation MY PROMOTIONS
  21. 21. Which the modern-day consumer now demands
  22. 22. So, how do you check that your reward program is adequately personalised? 4 4 4
  23. 23. YOUR DATA WILL BE unique DATA!
  24. 24. But you may recognise some of these 5 common customer groups
  25. 25. CUSTOMER 1 l This customer travels on long haul flights at least once a month l They earn a free trip easily and accumulate points rapidly l They see value from your program, but only see the rewards as a way to get free trips… l So their custom may be at risk, if made aware of a program with better opportunities
  26. 26. CUSTOMER 2 l Travel four or five times a year l It takes them quite a long time to collect enough points to redeem something like a free flight l They find it difficult to see the value in your program – and probably don’t feel connected or loyal to your brand
  27. 27. CUSTOMER 3 l Travels reasonably frequently for business l A passive collector – they accumulate points but are not engaged in the program l This customer does not actively choose your brand l Due to the time spent travelling for business, points towards a free flight will not motivate them to engage
  28. 28. CUSTOMER 4 l Only travel once or twice a year but accrues points whenever possible l In the short term, this customer does not appear important… l However, due to their age you want to get them invested in your brand as could end up being a life-long advocate
  29. 29. CUSTOMER 5 l Customers with busy schedules l They need to book seats on specific flights and do not have time to wait for a reward seat to become available l Participating in your program can often be a frustration for this customer
  30. 30. These are 5 very different customer groups and there may be many more
  31. 31. So how can you keep them all happy and engaged?
  32. 32. We’ve come up with a three step check TO HELP 2 3
  33. 33. Your range of rewards should reflect the regions, cultures, ages – as well as other demographics – of all of your members 1. CHOICE
  34. 34. Make sure your program features the most relevant and up-to-date products, not end-of-line stock or obvious bulk buys 2. Attractiveness
  35. 35. Give your customers discounts they weren’t expecting, and make sure your products are competitively priced 3. Price
  36. 36. Why don’t you apply THIS check-list…
  37. 37. … to see if your FFPREWARDS program...
  38. 38. … IS engaging all of your different customer groups
  39. 39. Have any questions? Like to know more? get in touch info@collinsonlatitude.com @C_Latitude #ChangingHorizons

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