Loyalty program survey favours more choice

Singapore was included in a global survey of 2250 airline and hotel loyalty program members, which found that greater reward choice generates a more positive redemption experience, increased loyalty and further revenue generation.

London-based loyalty program consultant Collinson Latitude ran the survey also in the Middle East, UK and US to better understand the impact of redemption stores and engagement levels.

“The impact of providing a choice of rewards outside of typical flight, room and upgrade inventory on earning behaviour was compelling,” says the company of its findings. In fact, 77 per cent of members continued to spend with the brand and earn further points following a redemption on non-core inventory – 6 per cent more than members who redeemed on core inventory alone. This indicated that non-core rewards accelerate earning levels, so are a crucial component of a redemption proposition.

Broader choice is also a key factor when consumers choose a program to join. In fact, 61 per cent of travel loyalty program members specifically seek more choice in rewards, while for 71 per cent the value of a program decreases if it offers a limited range of rewards. Also, 42 per cent believe that programs offering only core inventory rewards are “dated and old-fashioned”.  

“When the breadth of rewards is expanded beyond the core product offerings of flights and hotel stays, we see member loyalty and spending (earning) increase,” says Collinson Latitude eCommerce sales director Guy Deslandes. “This is the ROI that travel brands crave.”

The study also shows that if members enjoy their redemption experience, they can become powerful brand advocates: 40 per cent of members would tell friends and family about a program following a positive redemption experience, while 33 per cent would actively encourage them to join the program.

“If travel brands can get this right, providing greater choice of redemption options will not only increase ROI directly from members, but they will also drive further value and engagement through advocacy. This is a very compelling combination.”

Conducted for Collinson Latitude by research company Vanson Bourne, the survey covered 2250 consumers. Collinson Latitude has been partnering travel and financial brands since 2009 to help make their loyalty programs more valuable and engaging. It is part of the Collinson Group, which works globally to influence customer behaviour.

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