GSummit SF 2014 - Taking Airline Loyalty Beyond Flight by Francisco Schnaas

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Putting Gamification into Play in Coalition Loyalty Francisco Schnaas President – Club Premier June 12th, 2014

Transcript of GSummit SF 2014 - Taking Airline Loyalty Beyond Flight by Francisco Schnaas

Putting Gamification intoPlay in Coalition Loyalty

Francisco SchnaasPresident – Club Premier

June 12th, 2014

1992 1996 1997 2000 2001

Frequent flyer program with earn and burn for

AM flights.

PartnersSales of KmP to

different partners

Sales of KmP and points conversion

Exchange of KmP and benefits between

partner airlines

“Best Frequent Flyer Program”

Freddie Awards

2002

Club Premier Familiar

Club Premier Corporativo

ALFA

1°“Club Premier de Aeroméxico

changes the history of Frequent Flyer

Programs”

2003 2004

Club Premier Empresarial

2005 2007

American Express

Corporate Aeroméxico

2010 2011 2012

GroupeAeroplan invests US$22 million in

Club Premier

Groupe Aeroplanchanges to AIMIA and

invests US$11.8 million in Club

Premier

?Credit card American Express

Aeroméxico

club

premier.co

m

Redemptionon line

Effie

Evolution of Club Premier

Launches new branding campaign

Redemption of

KmP in hotelsAcquires 49%of Club Premier investing US$88

million

1 200Loyalty

Professionals

Entrance of several

new Retail brands

Relanzamiento de

2012 2013

Evolution of Club Premier

Club Premier is a subsidiary company of Grupo Aeroméxico,Mexico’s flagship airline, and AIMIA, Worldwide leader in loyaltyprogram management.

Club Premier: Loyalty experts in Mexico

Club Premier: Loyalty experts in Mexico

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•Wider reward variety

•Single card

•Simpler value proposition

•Everyday spend earning

•More relevant offers

•Richer bonus offers

•Member communities

Better Stronger Faster

•Best earning velocity

•Faster ROI

•More efficient communications

•Faster business decisions

•Leverage partners for richer offers

•Larger customer base

•Richer database

•Cross-partner data

•Better behavioural levers

•Multiple channels

•Stronger analytics

•Economies of scale

Why coalitions work

Our Members accrue KmP in most spend categories

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Airlines

Banks

Retail and more

Hotels

Car rental & taxi

91 Earn Partners

Our commercial Partners represent a strong coalition in Mexico and globally

Best in class Reward Portfolio

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Flight Awards

Hotels

Car rental Activities

Merchandise

Experiences

Auctions

Charity

Games

Behind Club Premier’s loyalty program there exists a sophisticated CRM and 1:1 marketing company

Member

Communications

CRM

1. New customer acquisition

2. Increasing spend

3. Retaining existing customers

4. Changing consumer habits

Club Premier

Gamification Case Study: Premier Rally

Premier Rally: a gamified promotion

ChallengeEducate CP Members in a fun and cost effective way about the variety of Premier Km earn opportunities within CP

SolutionWe designed a gamified promotion by which CP Members were challenged to perform certain earn transactions with CP Partners representing our various earn verticals (ie. travel, gas, retail, etc)

Why did we design the Premier Rally?

How it worked?

Design considerations1. Simple and attainable goals2. Targeted and relevant communications3. Fun for Members and financially sound for

CP Partners and CP4. Learning approach for CP

How it worked?• Members had to opt-in into the Premier

Rally• 8 weekly earn challenges• Members were rewarded depending on

challenges completed:

Design Highlights

Earn KmP with: Win:

3 Partners 20% bonus KmP

4 Partners 30% bonus KmP

5 Partners 40% bonus KmP

6 or more Partners Double your KmP

Premier Rally communications plan

• CP newsletters:• Enrollment• Challenges• Status

• Banners and landing page on clubpremier.com

• Member account promotion tracking widget

• POS advertising in certain Partners’ stores

Design Highlights

Earn Challenge Example #1

Earn Challenge Example #2

Earn Challenge Example #3

Member account promotion tracking widget

0 500 1000 1500 2000 2500 3000 3500 4000

1

2

3

4

5

6

7

8

9

10

11

12

15

17

Number of Members

Nu

mb

er

of

Par

tne

rsM

em

be

rsEa

rno

n

Sin reto

Con reto

Members’ Earn behavior was positively impacted

Premier Rally Results

2.2% of Active Members opted-in

61% of opt-ins, participated

17% got bonus KmP

10% duplicated their KmP

28% increase in earn transactions

3% overall earn volume growth YoY

Member #2Member #1

Premier Rally Educated Members About New Earn Options

Before Rally During Rally

Aeromexico Aeromexico

Banamex Banamex

MembershipRewards

MembershipRewards

Scotia Rewards Lots.com.mx

Palacio de Hierro Office Max

Gandhi

80% new

Before Rally During Rally

Aeromexico Aeromexico

American Express American Express

MembershipRewards

MembershipRewards

LAN Restaurants

HSBC City Suites Hotels

Lots.com.mx

Hertz

Gandhi

La Europea

120% new

Let’s fly together

Francisco [email protected]