Re: VA and flybuys 3mths Gold offer and challenge
Could be a loss leader.
I understand the principle but don't agree with it...
To cheapen your product offering for a potential short term gain, in my mind is a very narrow view
One question is, do I cheapen the product to attract " new " customers who may or may not stay in the long run ( ie give away status ) or do I look after Gold and Platinum flyers with improved or "enhanced" ( in the right sense ) benefits that in the long run, retain the loyalty of customers so that they don't look elsewhere and provide products and services that encourage people to pursue higher status and higher spend. In turn this encourages non status passengers to improve their status as they perceive value in doing so..
In this situation, I don't think you sustain revenue growth by offering a loss leader on one hand and on the other, have some of your highest status customers not even wanting to maintain Platinum as Gold is close enough or some just requalifying as Platinum and redirecting further spend elsewhere.. I think you end up losing both ways.