The evolution of travel loyalty programmes from frequency-based to revenue-based earning models continues apace - and even as customers continue to complain about the changes, the changes always seem to boost both member participation and programme revenue. The move positions travel loyalty programmes to do what they do best: demonstrate loyalty and commitment to the brand's best customers. The latest proof of concept comes courtesy of South African Airways, which has announced new earnings milestones 15 months into its changeover from a frequency-based to a revenue-based model.
The South African Airways (SAA) news comes courtesy of News24.com, which reports that the airline's Voyager loyalty programme has exceeded 7.8 billion miles earned and 5.7 billion miles redeemed since the changeover. The site further reports that the airline has issued an average of 15,000 Voyager Miles per minute during the previous 12 months, while members have redeemed an estimated 10,000 miles per minute during the same period. Money quote from Suretha Cruse, SAA Executive Customer Loyalty:
�Member research has shown that the growth in both earning and spending of Miles is directly attributable to the positive changes made in both product and service levels over the past 15 months. SAA Voyager is already the largest airline loyalty programme on the continent with ambition now set on becoming the largest on the continent with the widest reward base.�
Cruse tells News24.com that the programme membership has grown at an annual rate exceeding 14%. That's good news for the industry - these moves demonstrate that, properly structured to reward profitable behavior, loyalty programmes can deliver measurable impact to your company's bottom line.