GSummit SF 2014 - Taking Airline Loyalty Beyond Flight by Francisco Schnaas


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GSummit SF 2014 - Taking Airline Loyalty Beyond Flight by Francisco Schnaas

  1. 1. Putting Gamification into Play in Coalition Loyalty Francisco Schnaas President – Club Premier June 12th, 2014
  2. 2. 1992 1996 1997 2000 2001 Frequent flyer program with earn and burn for AM flights. Partners Sales of KmP to different partners Sales of KmP and points conversion Exchange of KmP and benefits between partner airlines “Best Frequent Flyer Program” Freddie Awards 2002 Club Premier Familiar Club Premier Corporativo ALFA 1°“Club Premier de Aeroméxico changes the history of Frequent Flyer Programs” 2003 2004 Club Premier Empresarial 2005 2007 American Express Corporate Aeroméxico 2010 2011 2012 Groupe Aeroplan invests US$22 million in Club Premier Groupe Aeroplan changes to AIMIA and invests US$11.8 million in Club Premier ?Credit card American Express Aeroméxico Redemption on line Effie Evolution of Club Premier
  3. 3. Launches new branding campaign Redemption of KmP in hotels Acquires 49% of Club Premier investing US$88 million 1 200 Loyalty Professionals Entrance of several new Retail brands Relanzamiento de 2012 2013 Evolution of Club Premier
  4. 4. Club Premier is a subsidiary company of Grupo Aeroméxico, Mexico’s flagship airline, and AIMIA, Worldwide leader in loyalty program management. Club Premier: Loyalty experts in Mexico
  5. 5. Club Premier: Loyalty experts in Mexico
  6. 6. 6 •Wider reward variety •Single card •Simpler value proposition •Everyday spend earning •More relevant offers •Richer bonus offers •Member communities Better Stronger Faster •Best earning velocity •Faster ROI •More efficient communications •Faster business decisions •Leverage partners for richer offers •Larger customer base •Richer database •Cross-partner data •Better behavioural levers •Multiple channels •Stronger analytics •Economies of scale Why coalitions work
  7. 7. Our Members accrue KmP in most spend categories 7 Airlines Banks Retail and more Hotels Car rental & taxi 91 Earn Partners
  8. 8. Our commercial Partners represent a strong coalition in Mexico and globally
  9. 9. Best in class Reward Portfolio 9 Flight Awards Hotels Car rental Activities Merchandise Experiences Auctions Charity Games
  10. 10. Behind Club Premier’s loyalty program there exists a sophisticated CRM and 1:1 marketing company Member Communications CRM 1. New customer acquisition 2. Increasing spend 3. Retaining existing customers 4. Changing consumer habits Club Premier
  11. 11. Gamification Case Study: Premier Rally
  12. 12. Premier Rally: a gamified promotion Challenge Educate CP Members in a fun and cost effective way about the variety of Premier Km earn opportunities within CP Solution We designed a gamified promotion by which CP Members were challenged to perform certain earn transactions with CP Partners representing our various earn verticals (ie. travel, gas, retail, etc) Why did we design the Premier Rally?
  13. 13. How it worked? Design considerations 1. Simple and attainable goals 2. Targeted and relevant communications 3. Fun for Members and financially sound for CP Partners and CP 4. Learning approach for CP How it worked? • Members had to opt-in into the Premier Rally • 8 weekly earn challenges • Members were rewarded depending on challenges completed: Design Highlights Earn KmP with: Win: 3 Partners 20% bonus KmP 4 Partners 30% bonus KmP 5 Partners 40% bonus KmP 6 or more Partners Double your KmP
  14. 14. Premier Rally communications plan • CP newsletters: • Enrollment • Challenges • Status • Banners and landing page on • Member account promotion tracking widget • POS advertising in certain Partners’ stores Design Highlights
  15. 15. Earn Challenge Example #1
  16. 16. Earn Challenge Example #2
  17. 17. Earn Challenge Example #3
  18. 18. Member account promotion tracking widget
  19. 19. 0 500 1000 1500 2000 2500 3000 3500 4000 1 2 3 4 5 6 7 8 9 10 11 12 15 17 Number of Members NumberofPartnersMembersEarnon Sin reto Con reto Members’ Earn behavior was positively impacted
  20. 20. Premier Rally Results  2.2% of Active Members opted-in  61% of opt-ins, participated  17% got bonus KmP  10% duplicated their KmP  28% increase in earn transactions  3% overall earn volume growth YoY
  21. 21. Member #2Member #1 Premier Rally Educated Members About New Earn Options Before Rally During Rally Aeromexico Aeromexico Banamex Banamex Membership Rewards Membership Rewards Scotia Rewards Palacio de Hierro Office Max Gandhi 80% new Before Rally During Rally Aeromexico Aeromexico American Express American Express Membership Rewards Membership Rewards LAN Restaurants HSBC City Suites Hotels Hertz Gandhi La Europea 120% new
  22. 22. Let’s fly together Francisco Schnaas