Travel News - Why Loyalty Programs Alienate Great Customers (article, discussion)

Short article, interesting, qualified commentator:
http://hbr.org/2012/07/why-loyalty-programs-alienate-great-customers/ar/1

Nice find. ^

Seems to me anyone that would spend $25K plus for a flight (unless it was employer paid) should have their head examined. I could think of much better ways to spend that kind of money.

Seems to me anyone that would spend $25K plus for a flight (unless it was employer paid) should have their head examined. I could think of much better ways to spend that kind of money.

I get the impression that his employer bought that ticket since it was a business trip. But your general sentiment still holds.

Seems to me anyone that would spend $25K plus for a flight (unless it was employer paid) should have their head examined. I could think of much better ways to spend that kind of money.

^

Also, there are plenty of airlines who put F & J pax at the front of the phone queue when calling. SQ is one of them.

Good read - and IMO AA has a reasonably good job managing many of the issues presented.

AA has several levels at the top, including Miles to reach EXP, Points to reach EXP, and Concierge Key for the real top earners.

AA offers a soft landings - for the withdrawal....

And anyone who really flew AA 30 years ago - should have lifetime status at the Gold or Plat level.

As for Baby Boomers - and the "new" ways to reach status - the problem cross many levels. While many on the FT boards seem to agree with the new program requirements - the new requirements don't in any way take into account the way AA earns money on the program - Citi Bank buys miles, other vendors who 'give' Miles for purchase or donations - also feed AA's bank.

I crossed over a MM mark recently without any recognition - the "real" mm mark will come in about 18 months - however AA is getting value. (my rant).

My favorite point from the article ..

"The first road warriors who signed on 30 years ago are now retiring. ...... Airlines need to reconsider how they treat retired loyalists, perhaps offering them “emeritus” status."

Pardon me while I give AA a call to discuss this. :D

As this is a general topic ("Loyalty Programs" and not a specific hotel, airline or other loyalty program,) it is moved to the Travel News Forum for broader discussion.

JDiver, Senior Moderator

My favorite point from the article ..

"The first road warriors who signed on 30 years ago are now retiring. ...... Airlines need to reconsider how they treat retired loyalists, perhaps offering them “emeritus” status."


The guy was an outside consultant for AA, but is unaware of the Million Miler program? :confused:

A well written (and informed) article, indeed. ^

The only thing that might have been worth mentioning is the fact that loyalty programs (especially FF programs, more so than hotels) have also evolved in other important ways: partnerships and global alliances, tie-ups with (sell-outs to) credit cards, etc. These factors have also transformed the FF experience.

Apart from a priority phone line, what other "basic services offered to 'elite' members" could a full fare F passenger - and EXP to boot - not access on Qantas? :confused:

The airlines are n ot seeking loyalty of those, who can drop $25000 for a trip. They will fly any airline that suits their timings and gets them there the quickest.
If I could spend that kind of money, I would not be slave to a loyalty programme.
Those looking for the lowest fare, will also fly any airline that offers the lowest fare regardless of flight times or any other inconvenience. Those who fly occasionally don't fly enough to make loyalty a meaningful concept.

Those who can't spend large amounts but have to or like to travel a lot is where a loyalty programme can have an impact.

Loyalty of big spenders, whether spending their own money or of their employer, is fleeting.
Loyal frequent flyers in the middle have to keep flying and stay loyal to get the perks. IMHO, it's proper to seek their loyalty.

For $25000, one should get respect. Service with a bigger smile, good food and wine and an over all pleasant experience. There are no freebies, good enough to get loyalty of a person who can spend that kind of money.