1st May, 2023
Loyalty proved to be a saviour for airlines during the COVID pandemic, and today savvy brands are trying to ensure they are in touch with their loyal passenger base to understand how they value FFPs, what’s driving their earning and burning loyalty currency behaviour and so on, especially evaluating the value of loyalty programmes during an exacting economic environment.
In its recent study, featuring over 1,000 people from the UK, IAG Loyalty found that 92% state that loyalty programmes provide extra value during a cost-of-living crisis.
As Glenn Commerford, Head of Pricing, IAG Loyalty mentioned during the #MegaEvent2023, the group is witnessing continuous engagement, with love of travel returning and members also intending to use their loyalty currency for all sort of offerings. “Loyalty lifecycle is getting faster and faster,” said Commerford. He added that group is astutely relying on data to enlarge the member’s share of wallet, evaluating offerings within the group and also increasingly counting on partnerships.
Rational vs. emotional decision
Brands having trying to assess what consumers think and expect from loyalty initiatives.
Have customers become more rational when collecting in order to maximise the amount of points they can get?
In its study, IAG Loyalty found that when redeeming, 80% of people consider themselves rational decision makers and 20% emotional decision makers.
The break-up differs strikingly by age, with rational decision makers rising from 63% for 18-24-year-olds to 93% for the 65+ age group.
A couple of other findings:
· Emotional decision makers are more “likely to prioritise more indulgent rewards, which are also more popular when points are gifted rather than saved”.
· Rational decision makers prioritise essentials (e.g., groceries or fuel) over buying consumer goods (e.g., clothing or technology) with a score of 79% versus 64% for emotional decision makers, whereas emotional deciders live more ‘for the moment’ and focus more on indulgent rewards.
By Ritesh Gupta, Ai Events
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