Future airline loyalty programs will be fueled by social networks

Over 80 percent of airline loyalty programs never earn enough miles to redeem a flight, says consultant Shashank Nigam, and most of the other 20 percent of participants “fly so much that the last thing they want to do is step on another plane.”

Writing in SimpliFlying,  Nigam  —  a consultant on airline branding and customers engagement strategy  —   suggests that may be why some loyalty program managers are worried.

He concludes the future of frequent flyer programs has become a “pressing question, given the growth of social technologies.”

The result is that many airlines are rushing to find ways of driving social loyalty

Nigam says he partnered with Cranfield University in the UK to conduct a study on how frequent travelers (who travel at least five times a year) use social media. These were some highlights of what they found:

—There are more airlines on Twitter than there are airlines with frequent flyer programs (191 vs 179).

—Almost 90 percent of frequent flyers use Facebook regularly, and over 65 percent “Like” at least one airline on Facebook.

—To frequent fliers cheapest fare is the least significant loyalty factor among customer service.

—Almost three-quarters or 72 percent of frequent fliers would join a social loyalty program.

—Almost two-thirds or 65 percent of frequent fliers would like to earn social loyalty points via check-ins or by contributing ideas to an airline’s Facebook page.

—Over 80 percent of frequent fliers would like to earn social loyalty points by recommending the airline to a friend or providing positive feedback.

Shubhodeep Pal, also writing in SimpliFlying, points out the ever-changing internet is regularly finding new ways of change in the virtual socialization of human society. “And the most important part of this change is the growth in two-way conversations instead of one-way advertisements,” he writes.

Instead of for-fee and pre-determined messages, social networks have shaken up the historically cold company customer relationship.

In a recent presentation, he points out that for the airlines, the future of airline loyalty is a pressing question with the growth of new technologies.

“Traditionally, loyalty programs have never been good at addressing the issue of how to drive loyalty.  However, what if you’re not a frequent flyer but do fly occasionally all the same?” he asks. If that is the case, do the usual loyalty programs provide incentives?

Airlines are increasingly finding various ways for social media to drive loyalty. They’re even finding ways to make air travel more attractive and rewarding even to non-frequent flyers.

Social media takes on even more importance when airlines realize that some of their most ardent flyers are also the most vocal advocates of their brand.

He predicts the next wave of loyalty programs won’t be restricted to just coupons, reward points and cabin upgrades. Recognition will be a future key feature, with some already in place.

The writer also concludes that social loyalty is the future of frequent flyer programs.

By David Wilkening