How Data Could Drive An Airline Loyalty Program Overhaul - Simple Flying

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A loyalty program is a central component of numerous major airlines across the globe. Yet, the systems that these initiatives are based on have essentially remained the same for decades. With this in mind, Simple Flying recently spoke with White Label Loyalty CEO Achille Traore about the potential to introduce new reward processes in the industry in this next chapter.

Outdated processes

Airline loyalty promotions, including frequent flyer programs, gained notable traction in the market approximately 40 years ago. These miles-based schemes have developed and adapted over the decades, but the overall evolution has remained stagnant for some time.

This is a factor that Traore noticed across other industries. He saw that customer loyalty was broken as firms have been primarily rewarding their community simply based on transactions. He saw how faithful fans can be to their favorite sports club but saw a contrast across the board.

As a result, Traore founded White Label Loyalty in 2016 to help brands form more meaningful connections with their customers. End users are rewarded for any behavior, not just transactions. This approach has led to the firm partnering with major players such as Burger King and PepsiCo to enhance their loyalty projects.

Passengers have plenty of options on several routes now that the restrictions are continuing to relax across the continents. Photo: Getty Images

The right insights

Data is king in White Label Loyalty’s model as it helps companies understand their customer to keep them happy. Traore explains that his company launched an API-first platform, which helps clients connect any data source, including CRM, ERP, and POS, and create a 360 view of the customer. He adds that his business’ technology then helps to extract actionable insights for brands to offer the best value possible for every individual customer. This route enables a far more personalized approach, which results in improved customer experience, satisfaction, and retention.

In the modern climate, sustainability is increasingly forming an integral role in customer loyalty. Traore recognizes this, especially in the travel realm.

“As the world’s concern for sustainability is at an all-time high, it is impossible to ignore the impact the travel industry has. Naturally, airline brands are looking for ways to play their part and get their customers involved. This is why we work closely with our clients and prospects to find ways to incentivize and reward sustainability. This may look very different with individual approaches, including but not limited to donating miles to an offsetting green cause.”

A key partner in the travel space is Dubai Holding, which operates within the destination, hospitality, and retail sectors. The group has just launched Tickit, its brand-new loyalty program, which White Label Loyalty notes is a first-of-its-kind rewards program offering an effortless, instant way for people to earn and redeem points across Dubai. The initiative uses seamless card-linking technology to reward residents as well as travelers in the UAE for visiting and shopping at various venues across the city.

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Plenty of potential

Going forward, White Label Loyalty's leadership sees significant opportunities in the travel space, especially when it comes to airlines. In this recovery period, the company anticipates that now more than ever, carriers will face the challenges of high competition and retention of passengers. Subsequently, effective use of customer behavior data, including transaction-related information, will be the major differentiator between those that manage to make up for their losses and get back on course and those that fall behind.

“One of the key issues air travel companies have faced when it comes to customer loyalty is points burning. Typically, one of two things would happen. One, it would take too long for a customer to collect enough points to get any reward, sometimes the points would even expire and the customer would have to start from scratch. Second, customers wouldn’t be well-enough informed as to how they could use their miles and points to get meaningful rewards or they would regard the process too complex. With the technology available today, both of these issues can easily be resolved with the right loyalty logic and reward options. Yet, we’re not seeing the change happening, which creates a window of opportunity for any brand to be the leader in the revolution of airline loyalty. But who will it be?”

GettyImages-973339442 Airbus A340 Air Belgium Exhaust Fumes

We can expect significant transitions in the travel space this decade. Photo: Getty Images

All in all, with the aviation industry shaken up following the impact of the pandemic, airlines will be keen to find new ways to connect with their passengers in this crucial period. It’s evident that carriers are pulling out all the stops to pull ahead amid a plethora of route launches and special fares. In the long term, a fresh approach to loyalty could work wonders.

What are your thoughts about the current industry climate in regard to customer loyalty? Let us know what you think in the comment section.