Loyalty ConnectOS reposted this
American Airlines reversal to restore miles earning through travel agents feels inevitable and avoidable. It is easy to understand the rationale, which is also commonly pursued by hotel programs where booking direct gets rewarded, and via travel agents does not. But in my view it should not be administered as a binary, blunt instrument. Loyalty programs enable quality data to be captured on customers, for airlines and hotels to individualize incentives driving positive behaviours and monetize these data into huge corporate assets. So why not provide more rewards to book direct, but don't cast customers through alternate distribution channels into the lost, unidentified wilderness, keep them in the fold of the loyalty program. So differentiate the reward rates but continue to nurture a relationship. And the best way to persuade a customer to change channels is to know them and encourage them rather than try to rip away the comfort blanket entirely. In short, loyalty programs can support and enhance channel strategy and push other positive behaviours in the airlines' and hotels' agenda. But ideally not through exclusion but via varying the incentive. In this way you retain the enormously powerful data collection and targeted marketing capability a loyalty program offers to the maximum audience to drive the most value. #nextgenloyalty #urbanleopardventures #loyaltyconnectOS #FFP #loyaltyprograms https://lnkd.in/gJ3MGjEY