Changes to QF Loyalty Bonus (now includes status credits)

[trippin_the_rift]

Not too sure how some of you are drawing conclusions between LTx and loyalty bonuses!

It does seem like a positive step.. for now! Thanks, Qantas!

However, I feel this might be the beginning of the end for loyalty bonuses.
Consider the history: Upgrade Credits -> 5,000 pts (uncapped) -> 8,000pts (capped) -> 8,000pts (capped) or 50 SC.

Each transition in loyalty bonuses has a positive cost saving impact for Qantas Loyalty.
Status credits don't have a real cost like 8,000 points does - so by taking up 50 SC you're effectively saving QF Loyalty a few bucks.
And those 50 SC which *might* have been flights, otherwise? There aren't many flights in the QF system which would give you 8,000 points for 50 SC, which is what QF Loyalty would have generated in revenue from you flying (actually - probably less than 8,000 pts are worth since QF would have sharper internal transfer pricing). Also keep in mind you'd need to be Silver (nearly) Gold to even take advantage of this.

So effectively - it's a cost-saving measure rather than a true member benefit. The flip side is that status credits are highly valued to some members so that it will appear as a positive move.

My prediction:
Next, email up (in 1-2 years) will be something like this..... "Most members have opted in for the 50 SC, and as such - we're removing the 8,000 pts option"
2-3 years later will be "We are replacing Loyalty Bonuses with <something terrible>."

 

[RooFlyer]

<snip>

My prediction:
Next, email up (in 1-2 years) will be something like this..... "Most members have opted in for the 50 SC, and as such - we're removing the 8,000 pts option"
2-3 years later will be "We are replacing Loyalty Bonuses with <something terrible>."

Nailed it.

 

[pagingjoan]

Finally received the email.
Would have been better had I not.

The PlatOne version is ..... less than rewarding?

".....However, please note that Loyalty Bonus[SUP]+[/SUP] Status Credits do not count towards retaining Platinum One.
It's all about providing you with a more rewarding experience."

Explain that to me again?

 

[cmon0005]

I reckon this is more of a 'screw you' (marketing counter-offer) against Flybuys/Velocity for offering SC's with shopping which I think is far worse than offering this bonus for actual flying QF which I will happily accept.

 

[Mr_Orange]

My prediction:
Next, email up (in 1-2 years) will be something like this..... "Most members have opted in for the 50 SC, and as such - we're removing the 8,000 pts option"
2-3 years later will be "We are replacing Loyalty Bonuses with <something terrible>."

I can't help but feel you will be proven right, but you really shouldn't post these ideas publically. Let QF work them out for themselves, it might take longer .

 

[oz_mark]

I reckon this is more of a 'screw you' (marketing counter-offer) against Flybuys/Velocity for offering SC's with shopping which I think is far worse than offering this bonus for actual flying QF which I will happily accept.

Maybe it comes down to who knew what and when, but there is no way Qantas put this together in the few weeks since the FlyBuys thing was announced.

 

[cmon0005]

Maybe it comes down to who knew what and when, but there is no way Qantas put this together in the few weeks since the FlyBuys thing was announced.

You might be surprised where I used to work I used to implement pricing and marketing offers, and we certainly had a team of people in marketing that just looked after rapid competitor response, which often had came up with counter offers and implemented them in quick time.

 

[oz_mark]

You might be surprised where I used to work I used to implement pricing and marketing offers, and we certainly had a team of people in marketing that just looked after rapid competitor response, which often had came up with counter offers and implemented them in quick time.

Offers within an existing framework I can see. Changes that require updates to terms and conditions (and its legal review and what not), design and development of new functionality etc., I'd be surprised....

 

[bismarck]

You might be surprised where I used to work I used to implement pricing and marketing offers, and we certainly had a team of people in marketing that just looked after rapid competitor response, which often had came up with counter offers and implemented them in quick time.

You'd think this would be a pretty straightforward implementation as well, so would be a fairly easy tactical response to something like that.

 

[mviy]

I hope it doesn't happen, but I would not be surprised if the thresholds to get LTS and LTG are increased to reflect the ability to earn SCs faster. If someone with a low lifetime SC tally barely scrapes in to retaining WP currently, with the bonus SCs they may be able to get to LTG close to one year sooner than they would otherwise.

 

[cmon0005]

Offers within an existing framework I can see. Changes that require updates to terms and conditions (and its legal review and what not), design and development of new functionality etc., I'd be surprised....

Without giving away what things we did and what industry I was in, we did some pretty crazy tactical offers/products based on CMO or CEO's 'just do it command', that required co-operation between Marketing, Operations, IT, Vendor and Legal, implement now ask questions later/fix problems later.

So I wasn't saying you are wrong but things become possible when the push comes from the top and co-operation exists between all involved, there were plenty of things that just couldn't be done as they were complex. Never say never

 

[oz_mark]

Without giving away what things we did and what industry I was in, we did some pretty crazy tactical offers/products based on CMO or CEO's 'just do it command', that required co-operation between Marketing, Operations, IT, Vendor and Legal, implement now ask questions later/fix problems later.

So I wasn't saying you are wrong but things become possible when the push comes from the top and co-operation exists between all involved, there were plenty of things that just couldn't be done as they were complex. Never say never

I am just going on what I have seen and heard around the place. Qantas can respond in a tactical way and get things out quickly, but this particular thing would have already been underway (or waiting in someones back pocket waiting for the right time). More than a little bit of thought has gone into it!

 

[esseeeayeenn]

I can't see why threshholds for status would need to be increased as a result of this.
The number of high status pax was reduced when they stopped giving SCs for ASAs.
They are currently tumbling again as the end of the mining boom and the crash in the FIFO workforce washes through the system.
This will be a marginal flow against the tide, which will only benefit people who are already doing a significant amount of flying.

 

[Altair]

I can't see why threshholds for status would need to be increased as a result of this.
The number of high status pax was reduced when they stopped giving SCs for ASAs.
They are currently tumbling again as the end of the mining boom and the crash in the FIFO workforce washes through the system.
This will be a marginal flow against the tide, which will only benefit people who are already doing a significant amount of flying.

And with the introduction of "Fairer and Simplier" where SC was effected as they increased the sector lengths and also the changes to partner airliner SC earn, I thought would also see the reduction in the number of people with higher status.
I do not see the 50SC or 8,000 QFF points as impacting the number of higher status members or the need to increase the number you need for each level, do not forget QF reduced the PS requirements a number of years ago. If anything I think this change can be seen as an enhancement, in a positive way, to the programme but with the option of taking 50SC instead of QFF points which hit the QF financials while SC should not have such a large impact, as the number of people making last chance SC runs to obtain/retain status would be very small.

 

[Happy Trails]

Finally received the email.
Would have been better had I not.

The PlatOne version is ..... less than rewarding?

".....However, please note that Loyalty Bonus[SUP]+[/SUP] Status Credits do not count towards retaining Platinum One.
It's all about providing you with a more rewarding experience."

Explain that to me again?

There's virtually nothing there for a P1 with LTG.
Perhaps getting the 2400SC perks a few weeks earlier than otherwise, at a cost of 32,000 points.

 

[opusman]

There's virtually nothing there for a P1 with LTG.

Given that P1s already get quite a lot, including a lot of things that WPs used to get, forgive me if I don't cry too hard on your behalf

 

[Happy Trails]

Given that P1s already get quite a lot, including a lot of things that WPs used to get, forgive me if I don't cry too hard on your behalf

That's OK, I'm not crying either.
At least there's nothing negative and some will have a use for it.

 

[esseeeayeenn]

There's "my glass is half full", "my glass is half empty", and then there's "my bottomless cup is overflowing with champagne but you just gave that peasant the last dregs from the bottle".

 

[Princess Fiona]

Finally received the email.
Would have been better had I not.

The PlatOne version is ..... less than rewarding?

".....However, please note that Loyalty Bonus[SUP]+[/SUP] Status Credits do not count towards retaining Platinum One.
It's all about providing you with a more rewarding experience."

Explain that to me again?

So it's no change for us PJ, I'll be taking the points

 

[pagingjoan]

So it's no change for us PJ, I'll be taking the points

You and me both, PF!

[And, for the record, to the posters above PF's:
I was referring to the wording of the PlatOne letter, which

1) Announced "Great News!"
2) Described the move as "improving our existing Loyalty Bonus".
3) Then stressed that it did not apply to retaining PlatOne (in contrast with obtaining or retaining other levels).
And finally, finished with the statement:
"It's all about providing you with a more rewarding experience."]

My point was that the message could have been better expressed.
No crying. No glasses half empty or half full.