A white paper detailing a five-point plan to address increasing customer disengagement with airline loyalty programmes and place perceived customer value at their core has been published by ancillary revenue experts Collinson Latitude. This article is copyright 2013 The Best Customer Guide.

In its white paper, the company outlines five effective steps airlines can take to heighten demand and brand loyalty as well as boost incremental revenues. The company says it is now challenging airlines to follow those five steps, including:

  1. Invest in deriving insight from customer data (transactional and behavioural) to continually evolve programme content by tailoring rewards to different customer segments and keeping abreast of changing customer needs.
  2. Plan a rewards strategy that focuses on matching the portfolio of rewards to the wants and needs of its programme members; not simply through partners that offer the best commercial arrangements.
  3. Work closely with partners to identify and source content that resonates with the airline's brand - where complementary 'fit' reinforces the aspirational appeal of the rewards. Airlines should aim to provide an offering of goods and services unique to them to remain differentiated from competitors.
  4. Use technology to deliver rewards that can add value by bundling appropriate products, up-selling and cross-selling so that members feel that they are getting value from rewards and offers, which also enhances the user experience.
  5. Use technology to deliver higher levels of personalisation based on insights gained from data and user interactions.

"Demanding customers, who are used to an increasingly high quality retail experience on and offline have every reason to now expect, their loyalty programmes to offer similar experiences," said Dan Martin, commercial product manager for Collinson Latitude. "We believe it is essential to make 'value' a key priority when designing your loyalty programme - from the sourcing of rewards right through to the technology platforms you select to deliver these. Investing time in this will create customers who remain engaged, demonstrate high redemption rates and ultimately remain profitable to your programme and your business."