Loylogic adds raffle & auction redemption features
The loyalty solutions provider Loylogic has unveiled new auctions and raffles through its LoyRewards service, allowing members of loyalty schemes using the platform to have a little fun while redeeming points toward aspirational rewards.
From the programme operator's perspective the idea is a win-win: Not only do programme members get extra features but they also have an incentive to burn points, which eventually leads to a much lower points liability. This is significant, Loylogic points out, in light of forthcoming changes in accounting standards for loyalty schemes in most countries around the world (see 20 Jul. 2007, for example).
New auction features Loylogic recently launched its new auction and raffle redemption options for the Etihad Guest Reward Shop. Apart from a standard auction process, Loylogic has also developed a new travel industry focused process called Multi-Item Bidding, which allows airlines to auction any amount of flight seats for a given destination (e.g. 6 seats from London to New York), with members bidding (using loyalty points) for the number of tickets they need.
Loylogic's system automatically calculates the best deal for the airline within all possible bidding combinations. The winning members (e.g. member A with a bid on 1 ticket and member C with a bid on 5 tickets) can then settle their auction bids using a combination of points and cash, depending on their current points balance and payment preferences.
Multi-ticket raffles Along similar lines, Loylogic's raffle process has a Multi-Ticket Raffle sliding scale, in which the platform exponentially calculates the number of raffle tickets the member is given based on the number of points they want to redeem.
In addition to the "fun factor" for members, auctions and raffles provide programme operators with a very cost effective points burning mechanism, along with several useful options to better control their liabilities stemming from the ever increasing number of unused miles in frequent flyer programme accounts.
Fun beats figures, anytime "The new interpretation of the International Accounting Standards Board is going to hit loyalty programme sponsors' balance sheets with an increase in points liabilities. This is why we aim at innovative, fun and rewarding redemption options for members at competitive burning costs for programme sponsors," explained Dominic Hofer, CEO for Loylogic.