The vast majority of credit card firms have integrated redemption or cash back programs into their rewards-eligible credit card products, allowing customers to either accrue points from purchases and redeem them or receive cash back as a statement credit or deposit. Currently, many credit card rewards sites have outsourced electronics merchandise to brick-and-mortar stores such as Best Buy or e-commerce companies like Amazon. In January, Wells Fargo bucked this trend by introducing a Digital Rewards points redemption section on their Rewards site where customers can download digital products like songs, movies, videogames and eBooks directly onto their computers. This allows card holders to forgo driving to the store or registering for a third party account, saving time and unnecessary hassle.
Consumers who are loyal to airline-specific credit cards may be getting a bad deal.
the first club's insight:
Switching from Airline to credit card loyalty program may not be the best alternative since credit card company can also devalue their points. Transferring your point to a loyalty specific program (like a coalition program) may be the best option as these programs are extremely unlikely to devalue as loyalty is their core business.
As long as Airlines do not create a separate P&L for their loyalty program, it will be difficult for them to understand all the financial benefits of such an activity...or maybe they see it and are anxious their loyalty program would have an higher valuation than the Airline itself.....
The person who has everything may have too many choices – via hundreds of social, digital and brick-and-mortar channels. These days, gaining an increased share of the luxury market’s desirable wallet requires first gaining share of attention, writes expert Steven Dennis.
reconsideration of engagement, involving how employees, partners and customers engage, according to new research by Gartner, Inc. Measuring the level of engagement itself is complex and requires examining the active, emotional, rational and ethical attributes that determine
Marketers have long sought to use reward programmes to build greater customer loyalty – whether it’s a coffee shop punched card, an airline with free upgrades, or a supermarket with points and coupons – and the end goal is always the same: building and strengthening customer relationships while boosting bottom-line results.
So WHY is customer satisfaction and engagement with loyalty programmes so low?
More than half of American loyalty-program members (54%) are unhappy with the reward options offered by their favorite brands and 48% have experienced frustration during the reward redemption process, according to research results released today by COLLOQUY and FanXchange.
Before investing the time and effort to develop, launch and manage a program, marketers need to have a clear understanding of what they are trying to achieve, because a customer engagement/loyalty program cannot solve every business problem. Clear focus on the objective(s) helps determine whether a program is, in fact, needed – and if so, what type of program it should be.
United’s recent changes to its mileage awards program illustrate the weird and perhaps misdirected nature of customer loyalty models used at many brands. United plans to parse mileage awards based on ticket prices, and give more points for more expensive tickets. I think such fliers offer the most revenue at the [...]