- Design industry shaping loyalty programs
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This year’s Loyalty Summit was held in Chicago and this two-day knowledge-packed event had loyalty experts and industry leaders from around the world including Capillary’s very own Clarissa Schealer SVP of Sales, and Lars Parmekar, Strategic Account Manager.
A larger theme explored this year showcased the lengths and breadths of the role of Artificial Intelligence in the loyalty space and how it can drive customer engagement, retention, and sustained brand loyalty efforts in the Travel & Hospitality industry.
While most business verticals have seamlessly transitioned into the digital era, customer loyalty strategies are stuck in a bygone era. Many enterprises still struggle with outdated tools and methods, despite having access to expansive data and technological advancements. However, there’s a silver lining as companies begin to embrace rapid experimentation, adopting innovation that’s crucial for rethinking their approaches to customer loyalty.
With personalization being a cornerstone of loyalty strategies for the past two decades, the industry is now harnessing cutting-edge technology to fully tap into its potential. Luc Bondar, Vice President & COO of MileagePlus at United Airlines illustrated United’s venture into Media via their Kinective platform. This venture is set to revolutionize how personalized ads are integrated into the traveler’s journey, enhancing content relevancy at scale while optimizing partner expenditures.
Adding to the discussion, Brett Catlin, VP of Loyalty & Alliances at Alaska Air Group Inc., highlighted the benefits of the Alaska co-brand card, developed in partnership with Bilt. This collaboration not only allows frequent and occasional flyers to accrue miles but also enhances their potential to achieve flyer status. The partnership is particularly appealing to the younger and price-conscious demographic that may not typically earn status through air travel alone. This strategic move grants Alaska Airlines access to valuable market segments, further facilitated by Bilt’s innovative technology that allows miles and status accrual via card usage.
Further emphasizing on the subject matter, Alyssa Callahan, VP of Marketing at TravelCenters of America, shared insights from their data analytics efforts, revealing an overlooked demographic of RV owners among their primary trucker audience. This led to a strategic partnership with KOA Campgrounds, enriching their loyalty program and providing additional value to their diverse member base.
All of these instances underscore the role of innovation and data-driven strategies in identifying and capitalizing on new customer segments, demonstrating how traditional industries can pivot and innovate in this dynamic market.
Today’s customer base comprises primarily of Millenials and GenZs who are socially conscious customers. A consumer today would give preference to an enterprise that would offer sustainability options to its users.
Enterprises are seeing a shift from the traditional earn-and-burn strategies to a more holistic approach that creates personalized and emotional relationships through elements like sustainability initiatives. For instance, Etihad’s “Conscious Choice” rewards its members’ miles who carry less baggage thereby reducing carbon emissions. Sprinkled with gamification, they create a compelling customer experience through badges and exclusive tiers. Members can also aid Ethihad in buying sustainable aviation fuel (SAF) which is 3 to 4 times the price of normal aviation fuel. Etihad boasts to be the first airline to reward frequent flyers for being more sustainable on the ground as well as in the air.
Through green and sustainability initiatives, enterprises share core values with their customers, giving members the power to make sustainable choices affecting the brand, nurturing long-term customer relationships, and brand advocacy.
Sustainability also curbs overhead expenses, through energy-efficient practices reducing resource wastage, and operational costs while simultaneously adapting to possible future environmental compliances.
Meaningful touchpoints are more influential than mere discounts or offers. Price adjustments will not do the job, consumers want to feel valued. They are willing to pay more if the business’s value propositions are aligned with what they want from them. A robust customer engagement strategy aims to build and maintain strong relationships through a customer’s journey resulting in higher retention rates, program sign-ups, and higher order values.
Clarissa Schealer at Loyalty Summit Chicago
A good sign of the success of your engagement strategy can be attributed to your churn rate. It is a good indicator to understand how keen your customers are interested in your offerings or if they have already moved on to competitors. Interacting with customers at every step of the way at various touch points encourages future interactions and nurtures future brand evangelists.
Dave Andreadakis, Chief Growth Officer at Bluewater encouraged the audience to shift their attention from traditional offers or earn and burn strategies to looking at the bigger picture on how one can create meaningful engagement for their customers and members. The technological advancements we have at our disposal allow us the ability to create truly differentiated and personalized experiences throughout the lifecycle and to go beyond conversations around cost or earn and burn ratio.
“What kind of joy are we bringing our customers?” – Dave Andreadakis
The ultimate goal with all these strategies is to foster customer engagement and retention, building lasting relationships with its members. Capillary’s Loyalty tech offers more verticalization through AI integration offering seamless migration for enterprises of any size empowering brands to leverage the power of loyalty at their fingertips. Get in touch with our Loyalty Experts to discuss how your brand can benefit from our expansive Product Suite.
October 1, 2024 | 3 Min Read
This year's Loyalty Summit showcased the lengths and breadth