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Case study Air Miles


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Case study Air Miles

  1. 1. Air Miles Canada: Rebranding the Air Miles Reward Program Case Study Presentation Wallamboklang Rynjah Brand Management
  2. 2. In short About the Case… To re-energize the brand & the 9 million active household accounts To refocus the brand’s premier position in the loyalty industry
  3. 3. The Company <ul><li>Loyalty & Marketing Services </li></ul><ul><li>Owned by Alliance Data Systems Corp </li></ul><ul><li>8000 Associates @ 40 Locations </li></ul><ul><li>Manages more than 105 million Customer relationships for NA’s Leading companies </li></ul><ul><li>Develop insights into Consumer Behavior </li></ul><ul><li>Create customized solutions for individual Cos. </li></ul><ul><li>Manage all aspects of the loyalty program for them </li></ul>For Air Miles: Deepening the emotional engagement that Customers have with the Brand
  4. 4. Customers 1. Sponsors More than 100 brand name business partners Canada Safeway, Bank of Montreal, Shell Canada & Amex Bank of Canada generated 44.6% of the program’s revenue in 2005 AIR MILES reward miles : Reward & Incentive
  5. 5. How Does it Benefit the Sponsors?
  6. 6. 2. The Collectors Individual consumers & households The program has issued about 17 billion reward miles since inception in 1992
  7. 7. 3. Suppliers Airlines, Leisure, Entertainment Providers, and manufacturers of consumer electronics The Program features more than 300 suppliers
  8. 8. The Competition <ul><li>Advertising & other promotional programs both traditional & online </li></ul><ul><li>Loyalty Programs & Services by other Co’s. </li></ul><ul><li>The ability to remain partnered with sponsors </li></ul><ul><li>The ability to sustain a large number of collectors </li></ul>
  9. 9. Differentiation
  10. 10. The Rebranding Of Air Miles Canada
  11. 11. Ranked among the top 3 loyalty programs in the world… Well Known Brand in Canada With 97% awareness among Canadians Then why Go for Rebranding??
  12. 12. Canadian Loyalty Market was becoming saturated
  13. 13. Credit card loyalty programs were growing in popularity 97% of the Canadian households participate in at least one loyalty program, 73% had three or more & 53% had four or more loyalty cards
  14. 14. Segmentation The Next Best The best Maintain Low
  15. 15. The Rebranding Methodology Look outwards at the competitive scenario (Gaps in the Market) Look inwards to the heart of what the company stands for Provide an opportunity for Air Miles as a brand to become more meaningful to consumers
  16. 16. The rebranding Campaign was….. <ul><li>Not targeted at suppliers or sponsors </li></ul><ul><li>Customer acquisition was not a goal </li></ul><ul><li>Neither was creating consumer awareness </li></ul><ul><li>Nor were they looking for direct increase in issuance of reward miles or redemption. </li></ul><ul><li>The goal was to change the attitude of a specific collector segment- the Next Best- from neutral to positive. </li></ul>
  17. 17. Storytelling <ul><li>Groups of about 20 collectors </li></ul><ul><li>Help of a Consultancy firm </li></ul><ul><li>Not focused on customers’ experience with an AM card </li></ul><ul><li>General theme of “ Feeling Rewarded ” </li></ul><ul><li>Members shared their individual experiences of being rewarded </li></ul><ul><li>At the end of the session the co. collected a portfolio of about 120 stories </li></ul>
  18. 18. Storytelling According to Edward Wachtman, CEO of the Storytelling Consultancy……
  19. 19. Storytelling Each story was personal & different Each story began with a sense of hope for the future…
  20. 20. Storytelling Then there was crisis…
  21. 21. Storytelling … and then a helping hand came along
  22. 22. Storytelling Each story ended with a resolution…. The goal was achieved That was the Reward
  23. 23. Storytelling Then there was a second level of Reward…
  24. 24. Lessons from the Storytelling Research A reward that came out of the blue was not as valuable as the reward that was hard earned The work of collecting has intrinsic value The exchange of value was critical to the feeling of being rewarded Emotions associated with “ feeling rewarded ” were deep-rooted
  25. 25. The Notion of double reward… The matter here is that the material reward matters little in and of itself…
  26. 26. Lessons from the Storytelling Research Learning from the storytelling research was a defining moment…
  27. 27. Hired a Brand Agency to work on a 2 minute Video (Sponsors & Employees) The Campaign Manager, Papadatos, met with all 600 call-center employees Developed TV Commercials, radio spots, direct marketing, video’s message from the Co.’s president to the Sponsors & their employees The New Creative Platform Monitoring of the Campaign….
  28. 28. Will this be the platform for building lasting engagement with Collectors???
  29. 29. Thank You
  30. 30. Q&A Shoot!!!