I'm suprised by the response (or rather lack of it) to Randy's editorial in the December Inside Flyer.

My own two cents is that the web will serve only to disseminate more information, and make information freely available to all. Companies will have to deal with it.

Will this cause an erosion of benefits? It depends. For some it might, but in a general sense if you aggregate the benefits over all members I do not think that it erodes benefits.

In a way it would be better if there were no promotions, and programs could be judged on their regular benefits. But as long as the promotions are there, I'll take full benefits from them, and so would I hope all the FlyerTalkers.

I actually had not yet read it, PG, but thanks for highlighting it for all of us. In my view, being informed is a good thing, if not essential, and in that sense it helps make the playing field more equal by providing more accessibility to info for all. Also if the pie stays the same size and I have to give up a little to share with more other people, than that's fine too. I can live with that- somewhat happily.

BTW- Today Dow Jones pulled out of a DLJ conference because reporters were not allowed to cover the sensitive investment information to be presented to analysts. They stood alone in pulling out. Only the NY Times made a statement saying they would not partake and support the conferenc next year unlees it is opened up to provide equal access to info for all. Thats why the WSJ and NY Times are the number 1 and two papers I read- integrity and fairness!

PG, I agree. But I think that what Randy is saying is that because the internet disseminates info so quickly and widely, the programs may stop doing targeted promotions because their non-targeted members find out about them from info disseminated via the internet, and then demand those benefits for themselves, costing the programs millions. Even if they have the software set up not to except "registration" from those that were not "invited," the public will find out via Boards such as this and call and want the targeted benefits or be disappointed.

So I think the question is "Will the programs stop doing targeted promotions because they can't keep the offers confidential?" I don't think it is being suggested that any of this info be stopped or censored. At least that's how I read it.

[This message has been edited by PremEx (edited 12-06-1999).]

Actually, programs will likely do *more* targeted promotions in the future because technology will become more sophisticated and allow them to better direct information at individuals. This is one of the things we'll be talking about on Talk City on Wednesday night and in our upcoming magazines.

I agree with doc that it is better to have a level playing field rather than a system where some privileged people benefit. In general, I favor benefits being accessible to all, rather than a chosen few.

Should companies treat incoming members better than existing members? I don't think so, but that is how they sometimes are. Should some people qualify for a promotion, while others do not. I do not think so either.

Pam at Webflyer, that may be, but it is not what Randy speculates in his editorial: PG..I agree.

Target marketing will not stop; it will get smarter. Offers will have unique serial numbers that can be activiated only once. Many companies do this already. Of course, if the designated recipient is not interested in the offer, he could pass it along.

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I understand that target marketing will be capable of getting smarter. But I don't think that's the point of Randy's editorial. Please re-read it. The point is that even if they manage to get the offer only to their target, the target blabs about it on the internet and then you and I call our programs and demand the same offer. What should the programs do at that point? Cave in and give it to us costing them millions, or say sorry and dissappoint their loyal customers. That's the point of the editorial, at least how I read it. Not if if they are technically able to limit the target.

I'm of the opinion of if I hear about it and qualify under the same terms that the target person received, then I should be given the opportunity to participate as well.

Absolutely agree - if my profile matches the one who got the offer, I should get the deal too. Amex would not budge on that issue when giving my husband a better deal than me. The only difference was our sex. Use of card, time applying for card, etc all the same. Hmmm - any lawyers out there??

I don't think the Internet means the end of targeted offers; it means the end of sneakiness. Those are two different concepts.

Case in point. A few weeks ago I got a card from FirstUSA informing me that if I spent at least $4000 with my BA VISA card in November + December, they'd double the miles. Fine. I posted this news on FlyerTalk in the British Airways zone. Almost immediately a bunch of other BA flyers posted the bonus mile offer versions THEY had received -- some better than mine, some worse. Made a lot of people feel miffed -- me included.

If FirstUSA wants to classify cardmembers according to their historical activity levels and calibrate different bonus packages for different member classes, that's beautiful. But do it in the open; make the tiers and calibration rationales public. When the card issuer (or whomever) tries to keep you in the dark, and make you believe that the targeted offer you got is the only offer there is, THEN customers get mad and the target-marketing stuff backfires owing to Web information sharing. That's what Randy is talking about, I think.

It doesn't follow that because customers can no longer be isolated from one another, you can't target-market. You just have to make your targeting apparatus fair and open to view.

It may not be open to view, but that doesn't mean that we don't know what it is. Target-marketing is supposed to reward you for doing something that you don't normally do, and not something the company thinks you're going to do anyway without any sort of promotion. That's why infrequent flyers get the double-mile promotions and the platinums don't.

So even if the airline were to say that this offer is only available to flyers who flew less than 2000 miles last year, it wouldn't make anyone feel better. It would just be specifically quantifying what we already know. All the platinums would still be calling in demanding that they should be treated no worse than the infrequent flyers.

BearX220, at first I thought you meant the end of sneakiness for us. After I read it again, I see you mean the end of sneakiness by the companies. I'm Ok with that now.

PremEx, I am not challenging Randy's editorial or the opinions of those on this board. I'm merely relating what we are hearing from the industry. (Randy's heard it, too. In fact, I heard it from him first...) Most programs are investing or have already invested in sophisticated software that allows them to segment their members by travel preferences, number of flights flown, destinations, partner purchases, just about anything. Some are already practicing one-to-one marketing, in which you get an offer from a program that no one else gets. Most of the contacts I've spoken with see think their members will actually enjoy this approach because the promotions they receive will be tailored to their needs and travel habits. Whether it's the right thing or the wrong thing for programs to do is debateable, and forum is a good place for that debate to take place. But these sort of marketing efforts are coming, and coming in a big way. That's a certainty.

Also, under Marriott there is a thread about how people are receiving different bonus offers for upcoming stays. The bonus seems to be based on status and previous stays.

I want to put my two cents in. The problem with targeted promotions is that some loyal flyers never get promotions because they don't fit the profile for the offers. I am a CO Platinum Elite and have gotten NO special offers in the last 18 months. My wife, also Platinum Elite, has gotten 4-6. This does not make me happy, needless to say, and if I'm Platinum, I should be as valuable as she is and get approximately the same number of offers. This is waht happens when a marketing department tries to get too narrow with offers. I wonder if other CO Platinum elites have had an experience similar to mine?

I definitely agree with you, Vulcan. If frequent travel programs are going to do these targeted promotions, they should review the number of promotions that their most loyal customers have been offered and send them a promotion to maintain a level playing field and to keep things fair.

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Cheers.

Leo.