Lack of clarity causes customer dissatisfaction
Many airline loyalty programs are failing to deliver on their intended purpose because members do not understand how to redeem the awards they accumulate. In fact, according to the J.D. Power 'Airline Loyalty Program Satisfaction Study', nearly half (45%) of program members say they do not understand how to redeem their miles and/or points. This lack of understanding has a significant negative effect on overall customer satisfaction.
"This is the third year in a row that we've seen airline loyalty program customer satisfaction hampered by a widespread lack of understanding of how to extract the most value from the programs," said Michael Taylor, Travel Intelligence Lead at J.D. Power. "Many airlines are evaluating the success of their loyalty programs based on dollars spent by travelers rather than on miles flown. That's a significant shift away from rewarding frequent travelers and toward rewarding high spenders."
Following are some key findings of the study:
The 2019 Airline Loyalty Program Satisfaction Study measured member satisfaction with airline rewards and loyalty programs based on four factors (in order of importance): earning and redeeming rewards (34%); program benefits (27%); account management (24%); and member communication (15%). The study was based on 3,188 responses from rewards program members and was fielded in August-September 2019. To learn more about the study, visit: http://www.jdpower.com
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