According to an article by Mediapost author Gary Leopold, most customers have had their fill of points. Loyalty Programs that have so-long based their system on points-based rewards may have to change their focus. Leopold quotes USA Today research stating that “there are over 17 trillion unredeemed frequent flyer miles (with a real value of over $480 billion) and nearly 89% of all miles are never redeemed… Not to mention that Americans on average already belong to 14.1 programs, yet are active only in a little over six of them.”
Instead, the key to building real customer loyalty, it seems, is to offer consumers a new or exclusive experience rather than simply offering another points program. Leopold cites a few examples: companies like Starwood offered SPG members the opportunity to attend an exclusive party and American Express invited their card members to take advantage of premium seating at New York’s Fashion Week.
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