FlyerTalk Forums - View Single Post - Independence Air - radically new frequent flyer program
Old May 20, 2004 | 6:53 pm
  #41  
Mill Creek Don
20 Years on Site
 
Join Date: Oct 2001
Location: SEA
Programs: DL DM, former NW PE
Posts: 934
Marketing 101

OK, Kids....let's start at square one. (kinda long...but bear with me)

The first rule is: "Give the customer a reason to purchase from you rather than your competitor." Second rule: "Don't ever let them forget that reason".

So, just what can Independence give as a reason for purchase vis-a-vis UA or any other major. Any alliance tie-in just emphasizes the miniscule nature of any Independence award vs. MileagePlus. With no F seats, lots of CRJ's and a lousy reputation, the questions become: "Why should a business traveller fly us rather than Brand X???" and "Why should a leisure traveller fly us rather than Brand Y???"

If the answer to either question is the FF program, then you have BIG shoes to fill. It had better be the greatest thing since both sliced bread and the two hour lunch. OTOH, if it is merely the icing on the cake, then you have a different situation to work with.

Personally, my suggestions would be:

Mileage or segments. Not $$. Dollars caters to those on full expense accounts without a lot of controls. Those flyers are dwindling, as the Big6 are finding out (just ask DL and CO about their EQM situation). As for miles or segments, look at your route structure. If you have most flights going the same/equivalent distance, go with segments. Easier to administer. If you have a wide disparity in stage lengths, make it miles. You shouldn't get the same credit for IAD-PIT as you would for IAD-SFO. Not if you want to keep the SFO pax.

Elite levels. Absolutely. Go back to rule 1.

Elite benefits. If you have no F, then the best seats in the house go to your elites. And you keep the adjoining seat empty to the last minute. And the gate agents can not be allowed to be lazy and just fill the plane from the front since it's the first screen that pops up on the computer. Priority at security is also important.

Awards. A lot of the ideas presented in this thread are good. But again, you HAVE to make it something to get people away from the Big6. Otherwise, you're just a gnat that they will either ignore or swat away. WN came up with the Companion Pass. Not necessarily for everyone, but something that no one else had. It made them stand out. Have a range of awards that can matter to the once a week flier and the once a quarter flyer. And make them obtainable. Don't have such restrictive capacity controls that you can't use them. Think about this....what you really want is to have so many awards to issue that you're running into trouble filling them. Why? Because the source of that "problem" is that lots of people flew your airline in the first place!!!! Don't complain about the commissions you are paying your top salesman. He's bringing in the business!!!!

Program Rules. Make them simple. Make them understandable by both the flyer and the staff that has to administer them. Ask DL and CO about that.

Finally, recognize that no matter how great an FF program may be, if the flights are late or cancelled, if the GA's are rude and not helpful, and if the FA's make your time aloft a miserable experience - you won't keep passengers, and you won't get any from referrals either. FF is part of an overall customer relations strategy, not the solution.

Beyond all that, my consulting rates are reasonable....

Good luck.
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