In a white paper aimed at the airline industry, ancillary revenue firm Collinson Latitude has published its top five strategies for increasing the pace at which customers redeem their airline loyalty points and miles.
The paper, entitled 'Accelerating Redemption', identified and explained the five strategies the company believes airlines should adopt, based on its experience of managing multiple international airline loyalty programmes. In brief, the strategies are as follows:
"No rewards programme, however well-researched, well-funded and well-intentioned, genuinely drives customer relationships and improves sales unless customers actually redeem their points," explained said Dan Martin, commercial product manager for Collinson Latitude. "The programme can only add value when they start redeeming, so it's vital for airlines to kick start that redemption habit as soon as possible. But with US$16 billion worth of rewards earned each year going unredeemed, it's clearly proving to be a hard habit to instil."
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