Your 3 Step Check for FFP Success
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The document outlines a three-step process to enhance the success of frequent flyer programs (FFPs) by leveraging customer data to segment members based on individual behaviors and preferences. It identifies five distinct customer groups, emphasizing the need for personalized engagement and relevant rewards to keep them interested. The three steps include ensuring a diverse range of rewards, offering unexpected discounts, and maintaining competitive pricing to cater to various demographics.
Your 3 Step Check for FFP Success
- 1. A three step check to Frequent Flyer Program Success 2 3
- 2. FREQUENT FLYER PROGRAMMES (FFPs) ARE COMPLICATED BEASTS
- 3. THEY VARY BY SIZEAND BY REGION
- 4. and of course... VARY BY people
- 6. SO IT’S SILLYTO THINK THAT your SAME REQUIREMENTS FFP MEMBERS WILL HAVE THE
- 7. MEMBERS HAVE DIFFERENT FLYING PATTERNSAND DIFFERENT REDEMPTION RATESAND LEVELS
- 8. IT’S REALLY NOTA ONE SIZE FITS ALL SOLUTION 987654321 10
- 9. SO, HOW DO YOU MANAGE THESE MULTIPLE Requirements?
- 10. AND HOW DO YOU KEEP YOUR MEMBERS ENGAGED AND DRIVING REVENUE? £ € ++
- 12. DATA!
- 13. gives you valuable information about your customers DATA!
- 14. DATA!THE ACTUALLY ARE in your program will tell you whoyour members
- 15. how frequently THEY FLY their regular destinations what purchases they make
- 16. This allows you to segment your customers into different groups
- 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. BETTER TArget your promotions With this INSIGHT YOU CAN
- 20. This helps to increase personalisation MY PROMOTIONS
- 21. Which the modern-day consumer now demands
- 22. So, how do you check that your reward program is adequately personalised? 4 4 4
- 24. But you may recognise some of these 5 common customer groups
- 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. 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. 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. 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. 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. These are 5 very different customer groups and there may be many more
- 31. So how can you keep them all happy and engaged?
- 32. We’ve come up with a three step check TO HELP 2 3
- 33. Your range of rewards should reflect the regions, cultures, ages – as well as other demographics – of all of your members 1. CHOICE
- 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. Give your customers discounts they weren’t expecting, and make sure your products are competitively priced 3. Price
- 36. Why don’t you apply THIS check-list…
- 37. … to see if your FFPREWARDS program...
- 38. … IS engaging all of your different customer groups
- 39. Have any questions? Like to know more? get in touch info@collinsonlatitude.com @C_Latitude #ChangingHorizons