So, which type of FFer are you??
Apr 21, 2012, 9:41 am
#16
Join Date: May 1998
Posts: 6,790
Wow! Outstanding information.
What an absolutely outstanding site!!
They've really put a lot of thought -- almost Machiavellian -- into this whole idea of frequent flier programs and how to capture the hearts and minds (and pocketbooks) of fliers, and which ones are worth the effort.
Oh, the concept of "firing" low-yield, highly complaining customers is nothing new (although they have some sneaky ideas of how to go about doing that), but they're light-years beyond that! Take a look at the following two articles:
Why are the most hated airlines so profitable?
This article raises some interesting thoughts. Among them: Is SMI/J really being very clever, and trying to set our expectations low through experience just so he can begin a campaign of exceeding them? If so, he's doing a fantastic job so far, and I can't wait for Phase II to begin.
Airlines are from Mars, customers are from Venus
This one is also very thought-provoking, and may explain certain airline behavior that seemed inexplicable to me. The whole concept of a “hackable” company is very interesting, and may even work very well when companies figure out how to really "mine" social media. It also may show a hidden motive for the "like us on facebook" campaigns.
I'm bookmarking this site and going to keep an eye on it even though I'm not in the type of job they're obviously pitching their articles to -- if anything, I'm the experimental animal in the maze, and I can learn a lot from the thinking of the experimenters.
They've really put a lot of thought -- almost Machiavellian -- into this whole idea of frequent flier programs and how to capture the hearts and minds (and pocketbooks) of fliers, and which ones are worth the effort.
Oh, the concept of "firing" low-yield, highly complaining customers is nothing new (although they have some sneaky ideas of how to go about doing that), but they're light-years beyond that! Take a look at the following two articles:
Why are the most hated airlines so profitable?
This article raises some interesting thoughts. Among them: Is SMI/J really being very clever, and trying to set our expectations low through experience just so he can begin a campaign of exceeding them? If so, he's doing a fantastic job so far, and I can't wait for Phase II to begin.
Airlines are from Mars, customers are from Venus
This one is also very thought-provoking, and may explain certain airline behavior that seemed inexplicable to me. The whole concept of a “hackable” company is very interesting, and may even work very well when companies figure out how to really "mine" social media. It also may show a hidden motive for the "like us on facebook" campaigns.
I'm bookmarking this site and going to keep an eye on it even though I'm not in the type of job they're obviously pitching their articles to -- if anything, I'm the experimental animal in the maze, and I can learn a lot from the thinking of the experimenters.
Apr 21, 2012, 3:03 pm
#17
FlyerTalk Evangelist
Join Date: Jan 2002
Location: Canada
Programs: UA*1K MM SK EBG LATAM BL
Posts: 23,309
The way I see the modern air travel marketplace is as follows:
(1) The Very wealthy.
These people don't care about value proposition, but about the product. They will pay whatever it takes to get the best product out there. Forget United. These people fly in the Singapore suites and in Emirates first, and through the LH FCT. Loyalty program: irrelevant.
(2) Corporate customers.
No matter what they tell you (and they will :P) loyalty programs shouldn't mean much here. These people's loyalty is really decided by their corporate contracts and not their preferences. But they fly, and fly a lot. They should be given upgrades and preferential treatment. But handing out points hand over fist to this group won't yield any incremental benefits to the airline.
(3) Self-payed leisure travelers who care about the product.
The way I see it, FFPs should cater to these people most of all. Unlike their fellow travelers in group #2, these people have a choice in airlines. They should be given occasional upgrades, and more importantly, lots of points. This group is willing to pay a premium (20-30% in my case) to fly on their airline of choice in exchange for points, upgrades and treatment.
(4) Kettles
These people will buy the lowest fare, period. Most of the time they don't know or care about the rules of the game. Loyalty program: irrelevant.
(5) Points People
These people pay as little as humanly possible. Points earned on the cheapest fares and routes, plus credit card spend, and of course sign-up bonuses. These points are then redeemed on high-value international J/F awards or last-minute Y. These people play the game.
I think 70% of Flyertalk falls into categories (2) and (3), and 30% into (5).
(1) The Very wealthy.
These people don't care about value proposition, but about the product. They will pay whatever it takes to get the best product out there. Forget United. These people fly in the Singapore suites and in Emirates first, and through the LH FCT. Loyalty program: irrelevant.
(2) Corporate customers.
No matter what they tell you (and they will :P) loyalty programs shouldn't mean much here. These people's loyalty is really decided by their corporate contracts and not their preferences. But they fly, and fly a lot. They should be given upgrades and preferential treatment. But handing out points hand over fist to this group won't yield any incremental benefits to the airline.
(3) Self-payed leisure travelers who care about the product.
The way I see it, FFPs should cater to these people most of all. Unlike their fellow travelers in group #2, these people have a choice in airlines. They should be given occasional upgrades, and more importantly, lots of points. This group is willing to pay a premium (20-30% in my case) to fly on their airline of choice in exchange for points, upgrades and treatment.
(4) Kettles
These people will buy the lowest fare, period. Most of the time they don't know or care about the rules of the game. Loyalty program: irrelevant.
(5) Points People
These people pay as little as humanly possible. Points earned on the cheapest fares and routes, plus credit card spend, and of course sign-up bonuses. These points are then redeemed on high-value international J/F awards or last-minute Y. These people play the game.
I think 70% of Flyertalk falls into categories (2) and (3), and 30% into (5).
(2) tend to be the most DYKWIA types. These people often say "I spend so much on this airline" blah blah when really they dont spend a penny. They should be given an illusion of being "important" such as red carpet, priority boarding to store all their gear they lug around. Flying around between clients/meetings (especially domestically) is horrible enough, let them feel important. But do they really care about points part or just the status part? If they ever get a vacation, chances are, they dont want to see another airplane.
(3) I agree should be looked after the most with points - people with lots of free time who have a choice on where they fly and who they fly to get there.
They may not fly as much, but have far more choice.
(5) I m sure airlines would love to get rid of us
Apr 21, 2012, 3:12 pm
#18
Join Date: Jul 2011
Posts: 583
The way I see the modern air travel marketplace is as follows:
(2) Corporate customers.
No matter what they tell you (and they will :P) loyalty programs shouldn't mean much here. These people's loyalty is really decided by their corporate contracts and not their preferences. But they fly, and fly a lot. They should be given upgrades and preferential treatment. But handing out points hand over fist to this group won't yield any incremental benefits to the airline.
(3) Self-payed leisure travelers who care about the product.
The way I see it, FFPs should cater to these people most of all. Unlike their fellow travelers in group #2, these people have a choice in airlines. They should be given occasional upgrades, and more importantly, lots of points. This group is willing to pay a premium (20-30% in my case) to fly on their airline of choice in exchange for points, upgrades and treatment.
I think 70% of Flyertalk falls into categories (2) and (3), and 30% into (5).
(2) Corporate customers.
No matter what they tell you (and they will :P) loyalty programs shouldn't mean much here. These people's loyalty is really decided by their corporate contracts and not their preferences. But they fly, and fly a lot. They should be given upgrades and preferential treatment. But handing out points hand over fist to this group won't yield any incremental benefits to the airline.
(3) Self-payed leisure travelers who care about the product.
The way I see it, FFPs should cater to these people most of all. Unlike their fellow travelers in group #2, these people have a choice in airlines. They should be given occasional upgrades, and more importantly, lots of points. This group is willing to pay a premium (20-30% in my case) to fly on their airline of choice in exchange for points, upgrades and treatment.
I think 70% of Flyertalk falls into categories (2) and (3), and 30% into (5).
Cheers
Apr 26, 2012, 11:51 am
#19
Join Date: Jan 2012
Location: ATL
Programs: DL GM, Hhonors Gold, SPG Platinum
Posts: 46
There is a category in between these two, made up of folks that travel on someone else's dime AND have some or complete discretion as to which airline they fly. There's a fair amount of small/medium sized companies or organizations that don't have corporate contracts and even large orgs that allow the traveller to bypass travel restrictions if reasonably done. I don't know if they'd warrant a separate category though since they have the same characteristics as (3).
Cheers
Cheers