A Wren Says

“Points systems like frequent flyer miles and credit card rewards have become such a meaningful part of our economy that many Americans view their rewards points balances as part of their savings.” That is what U.S. Transportation Secretary Pete Buttigieg said when asked about the FTC probe on the four major airlines. The airline carriers- Delta, Southwest, United, and American Airlines -were asked to provide detailed records of their practices when it comes to their customer loyalty programs. The probe is intended to protect customers from unfair practices when it comes to points and airline miles. As someone who has signed up for and flies based on loyalty programs, that idea hadn’t struck me.

I had been placing so much value on the additional benefits that comes of participating in a loyalty program, that I hadn’t rely though about the idea of points being like money. Or rather that other consumers might view it that way. I don’t know what the end result will be of this FTC probe, but it is already making me think about what that might mean for a business thinking about way to run their loyalty programs.

There are then multiple reasons why someone would choose to join a loyalty program. You have your people who are looking for special perks that they can only get as a member. You have the people who are looking for the money saving that comes from accruing points with purchases and perhaps free shipping. But what are the other reasons why someone would be enticed to join? How do you then use all of those reasons to build a more effective loyalty program that really gets you to the results you’re looking for and delivers the benefits customers desire?