Airlines seem to treat frequent flier programs as an asymmetric loyalty relationship: in exchange for our continued patronage, over time they provide fewer benefits to retain our business.
The trend seems to be moving to points awarded based on dollars spent versus distance, and the benefits of elite status are undermined by
a) $99/year credit cards which provide fee relief and
b) upgrades sold before given complimentary to elites.
For me the net effect is a reduced switching cost: for years I've been very loyal to United in exchange for elite benefits, but now must really look at every ticket as a transaction.
Here in Silicon Valley everyone approaches the world from a "growth hacking" and "programmatic marketing" perspective. I think that there is a place for these strategies, but that relationships drive loyalty. A recent blog post reframed my perspective.
Part of my relationship with United were several individuals at the domestic SFO club who I met when it was a much smaller CO outstation club. My favorite Thai bartender was outsourced, and I have not seen the other staff for perhaps a year. Through various FlyerTalk community DOs I also developed relationships with a variety of the staff who engaged our community here. I have this personalized experience more at the SFO DL club.
In an environment where airlines are both in a commodity transportation business, but also in the service business, it will be interesting to see how the conversation between customers and the service providers evolves.
How do you want airlines to pursue your business going forward?
Mods: I was not sure which forum to place this, feel free to move.
The trend seems to be moving to points awarded based on dollars spent versus distance, and the benefits of elite status are undermined by
a) $99/year credit cards which provide fee relief and
b) upgrades sold before given complimentary to elites.
For me the net effect is a reduced switching cost: for years I've been very loyal to United in exchange for elite benefits, but now must really look at every ticket as a transaction.
Here in Silicon Valley everyone approaches the world from a "growth hacking" and "programmatic marketing" perspective. I think that there is a place for these strategies, but that relationships drive loyalty. A recent blog post reframed my perspective.
Part of my relationship with United were several individuals at the domestic SFO club who I met when it was a much smaller CO outstation club. My favorite Thai bartender was outsourced, and I have not seen the other staff for perhaps a year. Through various FlyerTalk community DOs I also developed relationships with a variety of the staff who engaged our community here. I have this personalized experience more at the SFO DL club.
In an environment where airlines are both in a commodity transportation business, but also in the service business, it will be interesting to see how the conversation between customers and the service providers evolves.
How do you want airlines to pursue your business going forward?
Mods: I was not sure which forum to place this, feel free to move.
