Getting to know customers’ preferences will go a long way in building loyalty, writes Khairul Ashraf Kammed
ALMOST all airlines today have a Frequent Flyer Programme (FFP) which enables customers to accumulate points by flying with them or by doing business with their partners, which may then be redeemed for air travel and other rewards.
FFPs are designed with the simple goal of giving customers a reason to keep coming back, and today they’ve become a profitable revenue source for airlines — so much so that even low-cost carriers like AirAsia, Jetstar, and Cebu Pacific have adopted the idea.
But according to Amadeus South and Southeast Asia Airline Group regional director Nanda Pillai, airlines today need to look beyond their FFPs and do more to capture loyalty from travellers.
“The reality is that 50 to 80 per cent of them are infrequent travellers. Although more people are travelling than ever before, accumulating enough points to redeem an upgrade or free flights is less attainable and less attractive,” he says.
Furthermore, there is a growing sentiment that airlines are becoming less generous with FFP benefits, making it harder to earn and burn mileage points.
MAGIC RECIPE
So how can airlines win greater loyalty from travellers who are more diverse, empowered and have more choices than before?
Nanda says that it is by going back to basics, and this means making customers feel truly valued through highly-personalised experiences.
“The magic recipe starts by having a central view of the customer and understanding what value means to each individual as well as what he or she might be willing to pay for it,” says Nanda.
Passengers might want to be recognised as soon as they connect with an airline. They want offers to be tailored to their travelling patterns, and their personal preferences and requirements taken into account.
Above all, they want to feel special. This is where the FFP becomes an invaluable asset, providing a goldmine of information that can be analysed to provide deep insight into each customer.
This means knowing the specific situation of the customer in pre, during and post-trip, and delivering relevant information and offers to him in real-time, tailored to support him in any circumstances.
This is how Amadeus is working with the airline customers today — shaping the future of loyalty with personalisation across the entire travelling experience.