Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business. You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy.

Get it on Amazon (Kindle/Print)

Airlines have one chance left for loyalty

The study, entitled 'Rising above the Clouds: Charting a course for renewed airline consumer loyalty', indicated that airline loyalty programmes are not as effective as they could be in driving loyalty among their core audience of frequent travellers, finding that 72% of high-frequency business travellers participate in two or more programmes, while more than one-third participate in four or more.

Where's the loyalty?
Considering that airlines use reward programmes to drive brand loyalty almost exclusively, a remarkable 50% of respondents said they are enrolled in two or more airline loyalty programmes, with one-third participating in two or more programmes at the same time. But participation in multiple programmes among business travellers - a key segment for the airlines - stood at nearly 44%. Furthermore, two-thirds said they are receptive to the idea of switching to a competing loyalty programme, even after achieving the highest status level with their current programme.

The survey also found that the share of wallet for a "preferred" airline is significantly low. Only 44% of all travellers and 40% of business travellers fly at least three-quarters of their air miles on their "preferred" airline, while nearly one-third of business travellers fly fewer than half of their air miles on their "preferred" airline.

Perhaps even more worryingly for the airlines, the importance of loyalty programmes appears to be surprisingly low. Travellers overall - and business travellers specifically - ranked loyalty programmes as only the 19th and 18th most important attribute when selecting an airline (out of 26 attributes), respectively. However, despite their low nominal rankings among overall respondents, loyalty programmes remain valuable to high-frequency business travellers, ranking as the second most important attribute - even higher than safety! As such, loyalty programmes still remain a viable way for airlines to drive customer loyalty, particularly if those airlines can differentiate their programmes to stand out from the crowd.

"These findings suggest that airlines should consider taking a hard look at how they are engaging with their loyalty programme members if they want to cultivate genuine brand loyalty," said Adam Weissenberg, vice chairman for Deloitte. "With increasing competition and heightened consumer pragmatism, airlines may need to focus on personalising the customer experience in a way that makes individual travellers feel special."

One size doesn't fit all
According to the survey, characteristics that one type of traveller views as being important in a loyalty programme may be less important to others. For example, 76% of high-frequency business travellers view "more opportunities to earn and redeem points" as vital, compared to an all-respondents average of only 64%. Meanwhile, only 40% of all respondents believe access to airport lounges to be important while 68% of high-frequency business travellers value it.

And there were significant differences in how passengers plan and book their travel. An overwhelming 83% of respondents visit price comparison sites to book travel, and 72% consult family members when planning a trip. In comparison, respondents' social media usage for the task was far less common, with only 13% using social media networks to research or plan trips, and only 27% using an airline's social app. Results were similar with regard to to how airlines engage with passengers, with 80% of all respondents preferring email while only 26% were happy with interactions via social media.

Because the survey's overall findings reveal both subtle and not-so-subtle differences in the behaviours and expectations of the flying consumer, they underscore a need for differentiated, more targeted approaches to building loyalty.

"The bottom line is that airlines must consider making their loyalty programme rewards more personally meaningful," concluded Weissenberg. "For example, a flying passenger has the potential to serve as an airline's most effective marketing tool, yet only 38% felt positively about serving as a brand ambassador. Airlines should therefore consider providing more customised experiences for individual travellers, and encourage loyalty with unexpected and immediately accessible rewards."

The full survey report has been made available for free download from Deloitte's web site - click here (PDF document).

Have you seen The Customer Experience Factbook?

In this 180+ page report, you'll find all the information and support you need to build a profitable, effective CX Improvement Program that spans every part of your business.

You'll be able to implement and manage meaningful and profitable change, and grow your bottom line despite a slowing economy. Grab this goldmine of easily adaptable and up-to-date strategies, walk-throughs, trends, technologies, research, suppliers and partners, plus all the supporting arguments you need to build a solid CX strategy.

While most marketers could list maybe a dozen key points for improving their brand's Customer Experience (CX), the researchers and writers at The Marketing Factbook have identified FORTY main 'CX Keys' which will help you drive your customers to new levels of delight, loyalty, advocacy and profitability.

The areas in which customers have direct contact with your organization are perhaps the most obvious places in which CX improvements can be made, and this report addresses all 24 of these 'Direct CX Keys', applicable to offline and online businesses alike.

At the same time there are many other areas that indirectly affect CX (such as the supply chain, policies and processes) in which every business can make simple but far-reaching improvements. This report guides you through the problems and solutions for all 16 of these 'Indirect CX Keys', many of which are often forgotten or under-played even in the best CX strategies.

Get it on Amazon (Kindle/Print)