This document suggest the up-coming trends in airlines loyalty programs and how can they be improved.

1. www.niit-tech.com
NIIT Technologies White Paper
Frequent Flyer Programs: Achieving Next LevelFrequent Flyer Programs: Achieving Next Level
Amogh Joshi &
Syed Masood

2. CONTENTS
Executive Overview 3
Reaching Next level 3
Acquire 3
Know your members 4
Retain 4
Grow 5
Conclusion 6

3. TRANSPORTATION
JOURNEYJOURNEY
TRANSPORTATION
TRANSPORTATION
TRANSPORTATION
TRAVEL
TRAVEL
TRAVEL
TRAVEL
TRAVEL
TOUR
GUIDE
GUIDE
GUIDE
CARGO
CARGOCARGO
CARGO CARGO
LOGISTICS
LOGISTICS
PACKAGING
Acquire
Customer loyalty is earned by virtue of an
enriched user experience that compells the
traveller to come back willingly. However, it
does make a differece, to have more
members on roll so as to understand them
better and offer delightful service accordingly. Attracting more
members and getting them to reveal themselves has always been
a tough job. Member acquisition can be taken to next level by
means following key measures:
(Next Level) Channels:
Traditionally paper forms and website were the only channels of
enrolment. With the need to grow, loyalty managers have been
busy exploring more and more accessible channels for
enrolment. Enrolment through mobile apps and in-flight
enrolments via smart tabs are getting trendy. With such channels,
enrolment has become not only hassle free for the airlines, but
also convenient to cutomers.
Next Level of Enrolment Channels
Loyalty not only builds better connections with travelers, but also is
a significant revenue generator for airlines. A plethora of changes
are being made to airline loyalty strategies so as to comply with the
digital customers’ expectations and the rapidly changing industry
landscape. Abundance of digitally available customer information
has opened up new vistas to understand and connect with
travelers; however, such opportunities call for major reforms in
existing loyalty strategies.
The mismatch between opportunity and capability is because of
saturated strategies, which very often inhibit fruitful connection with
frequent flyers, and out of pace technological innovation. In order
to achieve an equilibrium, airlines must strive hard to improve the
service experience and minimize disconnects through alternate
means like product differentiation, innovation and personalization.
Contrary to the convention of just retaining a frequent traveler,
loyalty has a new goal today - to earn the members as brand
ambassadors, endorsing the services to other prospects. This
white paper intends to explore the much needed capabilities,
required to embrace the next level of FFP.
Reaching Next level
Reaching to next level needs sound interpretation of customer
behavior, acumen to gauge the current and upcoming shifts and a
futuristic vision to provide better customer experience. If the course
to Next Level of FFP be mapped, four key factors emerge as
important and non negotiable milestones in the due course:
i. Acquire: Identify the means to source in more loyal customers.
ii. Know: Analysis of traveler data to capture customer behavior
and traits for better decision making.
iii. Retain: Strategize to prevent the current base from competitors.
iv. Grow: Increase value proposition for enhanced customer
satisfaction
3
Executive Overview
Mobile Apps: Rise of smart phones has brought enrolment to
the finger tip of customers. A dedicated app surely helps.
Tabs / Other Hand
Held Devices:
Use of Tabs and other HHDs can make enrolment easier
during the journey lifecycle, especially at port or in-flight.
Social Platforms: Enrolment through social connect – like fetching profiles
from Face-book, linked in etc.
Kiosk: Self-service options like kiosk at lounge and at airport is
an faster way to enroll and print membership card
instantly.
Portals: Travel portals like Expedia, makemytrip, Cox and
Kings etc. can be exploited to gain more frequent flyers.
SMS Enrolment: Another channel to enroll, where in customer send a
quick text e.g. Enroll and someone from customer
service calls back to take details.

4. Know your members
The only way to serve your member
and gain the patronage is to know
them better. The two step process to
understand your member is to capture
as much information about them, and
being able to process this information
to analyze the pattern, need, preferences, likes and dislikes.
Data Acquisition
The traditional approach of capturing member details upfront, at
the time of enrolment, gives a mere peek into customer’s
lifestyle and traveling preferences. The questionnaire method is
not only cumbersome but also conceives fabricated results
(though not always).
The Steady Way:
A reliable way of understanding customer is to take a steady and
ongoing approach towards data capturing. Such an approach
consists of two principal components:
i. Identify reliable touch points:
The travel lifecycle of a passenger goes through various services
touch points e.g. Reservation office, Check-in desk, in-flight,
post-flight instances etc. At every point customer offers crucial
clues to its preference. A loyalty manager should invest effort to
identify such touch points which provide reliable information
without compromising convenience.
ii. Examine the touch point affairs:
To obtain information it is critical to have an ongoing audit of the
touch point affairs and drain the information to a central database
where it is collated and associated with an entity (Profile). If need
be, the touch point transactions could be modified to obtain
desired information, however this should never come at the cost of
customer experience.
There are approximately eight touch points, which can be used to
capture information in a steady approach. Of them all in-flight and
lounge time, because of their longevity, can be well utilized to
understand customer behavior. Tools (like Quiz, questionnaire,
games) accompanied by incentives may bear more fruits during
this time. Travel preference, e.g. Carrier, schedule, frequency etc.
and in-flight preferences can be deduced from booking and
check-in data.
Analytics
Access to data never concludes to a clear understanding, unless it
is sorted, processed and analyzed. Raw data is just an increasing
on the disk size unless it is analyzed effectively to understand flying
patters, preferences, like and dislikes. Even the analysis is waste if
the conclusion reached is not actionable. The next level dimension
to analytics is time and action. Information not fetched in time or
not put to action leads to an opportunity lost. The next level of
loyalty calls for better formulation of data and if required,
investment in next generation intelligence tools.
4
(Next Level) Convenience:
Airlines, which consider customer convenience as paramount, are
more likely to get better results. Choice of a channel must always
consider ease as an essential factor of decision. Also the
enrolment pitch should always be researched and well timed so as
not to burden or bore the customer. Travelers are more
approachable when in flight; however, enough measure should be
taken to keep the enrolment forms short and pleasing though not
discounting the required information.
(Next Level) Campaign / Promotion:
Wonderful results are expected once the offer to enroll is
accompanied with an instant value or a promise to deliver value in
real short terms. Campaigns are instrumental in educating the
prospects about the benefits, privileges and attention associated
with a FFP. Promotions not only persuade customers to join the
group of the recognized (program) but also facilitate cross/up
selling products. Important events, leisure or commercial, can be
utilized to launch well crafted campaigns or promotions.
Retain
The primary objective of FFP is to
retain the travelers, thereby mitigating
the risk of losing business and any
erosion of existing customer base. This
objective is achieved in two ways -
firstly by understanding customers’ travel preferences and
serve them exactly the way they want. Secondly, by making
efforts to improve customer engagement through social media,
mobile apps and dedicated member portals.

5. smooth redemption process involves uniform conversion rates,
wider currency acceptance and almost equal value of currency
across all partners.
Grow
Grow with Partners
Growth is a function of both acquisition and retention of members.
Both the factors, contributing to growth, are proportionally related to
value offered through a wide network of easily accessible partners.
Coalition with air and non-air enterprises motivates frequent use of
loyalty program which not only leads to higher rate of enrolment but
also delivers a surge in popularity of FFP. The alliances with partners
from various industries particularly from banking and financial have
enabled travelers to earn and redeem miles through a single
program irrespective of their airlines preferences.
Grow with Programs
Every traveler has its own purpose of travel; some travel for business
while others for leisure. The need and expectations from a journey
are subject to the purpose of travel, and thus comes the need for
programs that are customized for a particular traveler type. The fact
is that loyalty programs have already gone niche with corporate
programs, leisure programs, family/group programs and student
programs. However, it still remains a challenge to get maximum
benefits from such programs as careful classification and tactical
program designs along with smooth and easy transactions are very
important to get desired results.
Grow with Promotions and Campaigns
If not overdone, members feel connected as well as recognized
through cleverly designed campaigns and promotions. Beyond the
tradition of letter campaigns, loyalty has numerous platforms at its
disposal now. Some of the recent promotions tactics that not only
motivates the existing members but also increases the customer
base are:
• Launch a mobile game for members.
• Personalized gifts to members travelling First Class or Business
Class. – A personalized bag tag with imprinted member details
could do wonders.
Apart from routine benefits, like priority baggage or immigration
pass etc. loyalty managers must also consider the following
perspectives to stay ahead of competitors.
Stay in touch
FFPs need to explore more touch points apart from existing eight
basic air journey touch points. Devices like smart phones and
tablets improve brand visibility and reach out to travelers through
service messages, alerts, greeting and promotions. Also, wallet
presence and brand recall can be enriched by customized cards as
well as a network of good partners.
Localize
Localization of program features based on the commitment to social
behavior and cultural integration will be an important factor for
penetrating the local market other than the home base. While British
members will like to be involved Co-Creation of program benefits,
Indian prefer instant and confirmed, available air rewards.
Personalize Loyalty
Customers love personal attention.
Research proves that members feel
privileged when addressed by their
name while being served in-flight, at
check-in gate and other points of interaction. Top tier members
even expect personal meet and greet service imparting a sense
of recognition.
Personalized communication, customized cards, and greetings at
the right occasion along with a personalized service package surely
do wonder to air loyalty programs.
Missing you mailer
A missing you mail to frequent flyers that have not flown with airlines
in last few months can motivate member to choose the airline
whenever they plan to fly next. An interesting promotional offer
attached with the mail will bring favorable results faster.
Simplify
Customers find complex loyalty programs frustrating as excess of
rules make redemptions a difficult task. As complexity often
discounts the value, FFPs must strike a perfect balance between
offered value and complexity associated with the redemption. A
5

6. • Organize member only events yearly - Qantas Frequent Flyer
members have exclusive access to a selection of trusted wine
brands from Qantas epiQure cellar.
• Provide access to lifestyle events – Hopscotch Entertainment
One Offer allows Qantas Club members access to local and
international films at cinemas.
• Offer surprise benefits to top tier members - instant onboard
class upgrade etc.
6
Conclusion
Global changes in political and economic environment are
continuously shaping needs and expectations of frequent
travelers. The ‘next level’ of loyalty can be achieved not only by
staying in pace with these changes but also by keeping a futuristic
vision and precise understanding of customer behavior. Because
of lower acquisition cost, profitability requires increase in repeat
business resulting from a delightful service experience. As the
expectations are continuously changing, a delightful experience
can only be offered by a reformed loyalty proposition packaged
with exciting add on.
To get the FFP future ready, next level of reforms is required on all
loyalty dimensions i.e. Acquire, Know, Retain and Grow. As long as
loyalty managers have novel ideas to stand out on these
dimensions; viability, growth and profitability of a scheme remains
much achievable.

7. D_62_170414
Write to us at marketing@niit-tech.com www.niit-tech.com
NIIT Technologies is a leading IT solutions organization, servicing customers in North America,
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About NIIT Technologies
About the Author
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Amogh Joshi
Amogh is a Business Solution Specialist with NIIT Technologies TTL vertical. His passion is to provide
creative CRM strategy that positively impacts on customer service, cost reductions and profit
realization. Amogh has also worked extensively on various aspect of Airline Operations and
processes. He has actively participated and contributed in designing and implementing different
loyalty programs around the globe for CRANE for King Club (FFP for Kingfisher Airlines), CRIS for
Skywards (FFP for Emirates Airlines), and CIS for Flying Club (FFP for Virgin Atlantic Airlines).
With around 11 years of work experience in design, development and support of IT systems for
airlines and travel domain using SDLC and Agile methodologies, Amogh has been a catalyst in
steering and formulating business strategies for organizations to achieve maximum gains on
information technology investment.
He is a Certified Scrum Master, Oracle Certified Professional and an accomplished senior
information technology professional with a sharp focus on designing quality solutions that is
required in materializing customer centric business strategies.
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Syed Masood
Syed is a Business Analyst with NIIT Technologies Ltd, TTL vertical, one of the largest IT service
providers to Airlines. He has been instrumental in implementing CRM and Loyalty solutions for
global airlines, hotel chains, cruise lines and railways. Apart from Loyalty, he plays a crucial role in
developing business assets on other airline operations including, Passenger services, Border
Security, Passenger Screening and Profiling.
Across the globe, he has designed and implemented key IT solutions for airlines, ITCOS and Travel
Agencies like American Express, Air India, China Eastern, Swiss Air, British Airways, South African
Airways, SITA and Sabre. As an avid writer he has published several whitepapers and case studies
on airline processes.
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