In many ways, businesses attempt to expand their customer base by tackling new markets and attracting new groups of people through introducing new services or products; However, to achieve business sustainability and growth, one must implement strategies to retain the most accessible and predictable group of people: your loyal clients. According to Inc., a current consumer spends 67% more in comparison to new customers. This clearly shows how vital it is to maintain the valued relationship that a business has with it’s loyal customers in terms of nurturing that stream of revenue.

One of the most successful loyalty programs are the rewards systems designed by airline companies. The aim of these reward systems is to encourage customers to be “frequent flyers” and to gain benefits by getting more “mileage” in their accounts and moving up different levels. Personally, I am a United Airlines MileagePlus member and I frequently fly across the U.S. so it absolutely is beneficial for me to gain points and take advantage of the benefits. The appeal of these programs stems from the tier-based structure and their achievability; Members are introduced into the most basic level, where they can earn “miles” depending on the distance of their flight and get discounts for things such as hotels and car rentals. Each level has a required amount of miles which allows members to be inducted into more “premiere” statuses that grants them more exclusive benefits (priority check-in, extra baggage, priority baggage handling); customers eventually realise that these levels are achievable, which compel them to travel more and enjoy these benefits.

https://www.youtube.com/watch?v=jv97qoOmv6c

Another reason for my extensive use of my MileagePlus is because United is a part of the world’s largest airline coalition: Star Alliance. Star Alliance boasts 28 member airlines and they also have their rewards program, which seamlessly intertwines with the MileagePlus program. I believe that having this scope of connection, providing an excellent selection of major airlines with just one account, gives a phenomenal value that no traveler should miss out on.

Sources:

http://www.staralliance.com/en/benefits/earn-and-redeem/

http://www.united.com/web/en-US/content/mileageplus/premier/default.aspx

http://www.inc.com/guides/2010/08/get-more-sales-from-existing-customers.html