Loyalty schemes need new approach

Travel companies operating loyalty schemes should refresh their approach in light of the downturn, says information and transaction management company the Logic Group.

Anamaria Chiuzan, senior marketing manager in the Logic Group’s customer insight and loyalty department, said: “Loyalty schemes based on mileage are not working in the current climate because people are travelling less.”

Partnerships are one way to engage loyalty-scheme members who are not travelling, she said, so long as schemes are selective about who they partner – opting for link-ups which reinforce their brand’s values.

“The value of a well-run loyalty scheme is in customer retention, higher average spend and higher frequency of spending,” said Chiuzan.

Travel schemes should ensure points are easy to redeem during online booking, she added. “Customers will expect to be able to use their balance whenever they want.”

British Aiways has changed  its frequent-flyer scheme, Executive Club, to allow members flying on discount economy tickets the chance  to earn Executive Club tier points. “This is a good example of a business listening to its customers and changing,” said Chiuzan.

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