loyalty systems

loyalty systems

Many airlines now employ loyalty programmes as an incentive for their customers.

These systemss are to be understood within a context where customer relations and care have taken on vital importance.

Leon G. Schiffman, in his book “Consumer Behaviour”, claims that six main factors explain why current consumers tend to be less loyal than in the past:

1. Wide variety of options to choose from.
2. Greater availability of and access to information.
3. Acquired rights. Customers tend to be more critical of how they have been treated.
4. Greater uniformity of products.
5. Insecurity.
6. Lack of time.

In this context, loyalty programmes have become a crucial marketing tool.

The concept cannot be reduced to a simple promotional system where points are accumulated and gifts are handed out in return; in fact such a system is condemned to failure.

Loyalty is a much more ambitious concept and understanding it is the starting point for the creation of a system that is beneficial both for businesses and their customers.

Here are some key observations:

“A 5% increase in customer loyalty could well produce an increase in profits of between 25% and 85%.” (Rank Xerox Carlson Marketing Group)

“A 5% increase in customer desertion could  produce a 30% fall in profits”. (Harvard Business School).

“Loyalty programmes should be designed to make differentiated services and products available to customers in accordance with their buying patterns and profitability. If they are based only on discounts for large quantities or payment for sponsorship, then they will not last.” (Joseph C. Nunes, Marshall School of Business, University of California)

A loyalty programme should be designed with a specific organisation or customer in mind. If it is a just a mere copy of a system implanted elsewhere, then there is a high likelihood of failure because specific requirements of the market/product in question are being overlooked. The first step should be the setting of goals and lee el artículo completo…


Otras entradas que pueden interesarte:

octubre 28, 2009 (acabando la tarde) | Strategy | marketingforairlines | |
Tu comentario | Email This Post Email This Post | | Visita nuestro website



physical brand design

Crea physical brand desing airlines

Is it possible for airlines to make flying a pleasurable experience even before take-off?

There are ways to make this happen. One example is Virgin Atlantic’s futuristic/retro style VIP lounges decorated by its in-house designer Joe Ferry. Passengers can enjoy a cocktail or a session in the spa while their luggage is taken care of and a chauffer waits at the gate to carry out their check-in procedures.

This environment also provides an ideal opportunity for the airline brand to establish contact with passengers.

With this idea in mind Crea International has defined the concept of physical brand design to designate the creation of spaces as the physical expression of a brand with the aim of attaining sensorial interchange with the audience, thus generating a memory-inducing experience.

The concept goes much further than the creation of meticulously designed interiors: lee el artículo completo…


Otras entradas que pueden interesarte:

octubre 21, 2009 (a media mañana) | Airlines, Airports, Branding, Strategy | marketingforairlines | |
Tu comentario | Email This Post Email This Post | | Visita nuestro website



symbiosis between airlines and destinations

The travel and tourism industry will represent 9.4% of the world GDP in 2009 according to the World Travel and Tourism Council (WTTC) and although this figure is down on the year before it is still important. For many countries this sector is an important source of revenue and a keystone in economic and social development with capacity for job creation, attracting investment, capturing currency, diversification of the economy and in general generating of economic growth. One growing trend is the expansion towards what could be called emerging destinations; that is to say new geographical destinations and holiday ideas. More sophisticated, discerning travellers are now asking for more than what is available from regular destinations. According to the WTO (World Tourism Organisation), in 1950 97% of passenger arrivals were concentrated in Western Europe and North America – the situation has changed greatly since then. The development and importance of a destination lee el artículo completo…


Otras entradas que pueden interesarte:

octubre 15, 2009 (acabando la tarde) | Strategy | marketingforairlines | |
Tu comentario | Email This Post Email This Post | | Visita nuestro website



on-line marketing for airlines

on-line-marketing-aerolines.JPG

Attracting potential customers to airline websites is the first step towards boosting the sale of flight tickets online.

The orchestration of online marketing campaigns aimed at Internet users is one of the methods that is giving the best results in this direction.

One of the several possibilities available is email marketing. According to a survey conducted by the Travel Industry Association of America (TIA), over 35 million Internet users made a travel reservation after receiving information on offers or promotions by email.

The same study also found that in 2003 ten million people were influenced by email marketing to make a trip or journey that they otherwise would not have made.

This means that an online offer may be the start of a transaction or at least a way of attracting customers to the brand and its website.

In order to start up online marketing campaigns, the definition of the goals to be attained and the performance of prior segmentation of the data bases to be employed are both crucial. It is also important to reach persons forming part of the target audience who will receive the offer favourably, with a strong interest in the services offered by the airline. At the same time this type of actions will contribute to brand notoriety.

In this context the email marketing campaigns conducted by Austrian Airlines (which according to organiza.com managed to attract 11,000 new customers) or Vueling are of special interest. The latter was centred on the prize draw of a trip to Venice, linked to the willingness to receive information on special flight offers. lee el artículo completo…


Otras entradas que pueden interesarte:

octubre 8, 2009 (acabando la tarde) | Airlines, Online marketing | marketingforairlines | |
Tu comentario | Email This Post Email This Post | | Visita nuestro website



Cross-selling, up-selling, new business opportunities for airlines

cross-selling-airlines.JPG

The use of websites as a sales channel for airline tickets has meant that airlines now have direct access to a target audience with additional requirements for products and services related to the purchase of the flight.

This audience is still climbing. In March 2009 a DBK report on Internet travel sales analysed this segment of the Spanish market through interviews with managerial staff from 45 of the main companies operating in the sector.

This report found that despite a fall in tourism in the second half of 2008 due to the economic crisis, Internet travel sales underwent considerable growth. Total turnover for the final customers of these services from Spanish websites stood at 6,250 million euros, 20% up on the year before. The sale of air tickets was the most important activity, responsible for 39% of total revenue.

Given the large number of customers now accessing airline websites in order to purchase flight tickets, many airlines are now considering new business opportunities that may well contribute to user satisfaction through two different approaches: lee el artículo completo…


Otras entradas que pueden interesarte:

octubre 1, 2009 (casi comiendo) | Online marketing, Strategy | marketingforairlines | |
Tu comentario | Email This Post Email This Post | | Visita nuestro website