Today, the majority of airline loyalty programs drive non-air redemptions via a combination of channels such as their online reward shops, vouchers and gift cards, hotel and car rental partnerships, and even direct redemption possibilities with selected partners. The reward shop model in particular has worked well for a long time, but it’s under pressure in a world where consumer expectations are constantly rising in the face of the relentless growth and sophistication of ecommerce. The reward shop model is being stressed on three fronts. Firstly, complex ecommerce experiences such as fashion, ticketing or those which involve personalisation cannot typically be accommodated on reward shops. Secondly, the depth and breadth of product selection in any category can never match that which can be found directly on a given retailer’s website. Third and finally, in a world where consumers can price match online in an instant, there is constant pressure on programs to ensure they are offering competitive value pricing on their reward shops to match leading retailers.
At Loylogic, we have a long history of bringing innovation to the loyalty market, and this week marks another chapter in that story as we launch a new partnership with SWISS Miles & More to disrupt the way in which loyalty programs engage with their members. Miles & More, Europe’s largest frequent flyer program, is a sophisticated program with an industry-leading range of both redemption and accrual options for its members. Continuing along this path of ongoing innovation, SWISS Miles & More will now be using Loylogic’s PointsPay in Switzerland and Liechtenstein to empower their members to both spend and collect miles when shopping online directly at a growing network of online retailers.
In the field of online redemptions, PointsPay will ensure that SWISS Miles & More can stay ahead of its competitors by addressing all of the reward shop challenges mentioned above. SWISS Miles & More members can now shop online with their miles directly with a range of attractive retailers across categories not typically available for rewards redemption including fashion, leisure and luxury– simply by clicking the PointsPay button integrated into the retailer’s checkout page. Catalogue limitations no longer apply, as members are browsing the full range of the retailer’s latest and greatest product selection. And of course, members are paying the best price from the retailer directly.
The disruption isn’t just limited to the redemption side of the loyalty business. On the flip side, for miles collection, PointsPay also ensures that SWISS Miles & More members maintain the fullest opportunity to collect when shopping online directly. If members don’t have enough miles for the entire purchase, they can pay using a combination of miles and cash using their payment card – and crucially members will be collecting miles back on the paid cash component. This simultaneous redemption and collection leads to the highly engaging scenario whereby even members with just a few miles who are using them to partly pay for a purchase will hence collect more miles when topping up the payment using cash, thus keeping them engaged. Furthermore, members doing their regular shopping online can choose to solely earn miles by using PointsPay even when no redemption at all is taking place. The icing on the cake is that the earning is instant, enabling members to more quickly feel the benefits of collection and drive engagement with the program.
This combination of innovation both on the redemption and collection front presented a compelling opportunity for SWISS Miles & More to further develop their already sophisticated program. They are now taking advantage of a growing network of online retailers, including leading brands in their core Swiss market such as Vögele ShoesTM and MagandoTM, to engage their members in new and attractive ways. The loyalty market is clearly evolving towards one of increased flexibility and choice for members, and SWISS Miles & More is continuing to show leadership in this regard. The question for other programs is how long will their members be willing to remain loyal whilst waiting for similar benefits and absolute freedom of choice?
PointsPay is the powerful yet simple one-button solution which empowers loyalty program members to seamlessly shop at participating online merchants with their points or miles. It provides a unique triple checkout possibility, letting the loyalty program member collect or redeem their loyalty currency at checkout, or to pay using a combination of points and cash when choosing to redeem. It delivers value to all stakeholders in the ecosystem. PointsPay is a solution by Zurich-based Loylogic, the world’s leading innovator and creator of points’ experiences, insights, commerce and engagement, Loylogic caters to both present and future needs in delivering powerful solutions which amplify engagement and build loyalty.