Why would they? 11 million members comply with the current position/offers
....Why wouldn't they?
I could rattle off figures all day long like 30% of all points created expire, less than 5% are redeemed for biz/first class flights.
Or that other airline programs make a fortune from selling miles - having to provide almost nothing in exchange for upfront cash.
It's an excellent high revenue opportunity.
My professional industry expert opinion is that QFF has probably considered this, however for fun here is some of
my thought process on why QFF might
not sell points like other programs do:-
1) Their largest customers (banks/woolies etc..) may feel it somehow (not sure how) may devalue the QFF offerring with their brand being linked to the program (this is easily negated by QFF forcing them to promote it more/buy more points).
2) "Velocity isn't doing it so don't bother just yet..." (Seriously, how boring and non-commercial is this logic - fire any person who says this)
3) QFF lacks genuine game marketing mechanics and is out of touch, mainly due to the internal people (nothing wrong with it - just means things are very old school as their audience is mainly business people over 40 who are perceived as primary target customer - downside with this thinking is almost everyone under 30 years old doesn't give a fk about the program).
4) QFF doesn't think there will be much uptake outside 'hardcore FFers" (the term is really "people with disposable income wanting a good deal")... which couldn't be further from the truth (and highlights point 3)
5) Potentially pressure and/or an agreement from partner airlines not to sell points (blatantly selling points may breach this).
6) QFF thinks people will load up on points and not buy revenue fares thus costing the company lost revenue (Anyone in the FF loyalty game knows most people want to redeem for aspirational trips and not SYD-MEL daily bus rides. In this sense - people tend to 'trade up' when redeeming points. FFers will use on flights they otherwise may never take and thus creating a new revenue stream for this sub-segment. Additionally: this could capture the existing market of ever-growing people who are loyal to points and not to a FF program - again a revenue opportunity hidden under the same banner).
7) QFF may believe members will not take out a new credit card or shop at woolies as often if they have an 'easy' way to obtain points (true to a degree but this would be one sub-segment of the overall audience who may consider buying miles. Mum isn't going to stop shopping at woolies because she can now blow $2k on upfront points to get her accross the line on a trip she's been saving up for - and even if it was the case - which it's likely NOT - QFF has the CASH upfront and those points are likely sold at a higher rate than woolies is paying per point. Win:Win for QFF and customer)
8) QFF may be concerned all existing award seats in the system will be snapped up faster than usual thus 'annoying' members who are not interested in purchasing lumps of miles (SIMPLE SOLUTION: LOAD IN MH,JL, BA,AA.... create more flight options to redeem... anyone who knows anything in the FF business is aware that a member burning points on a partner airline is THE BEST value proposition for the FF program. A total no brainer approach)
9) Some type of agreement with max redemptions QFF members can use on partner/oneworld airlines (see point 8)
10) "This is the way it's always been and we don't do xx_x" (final words of a company heading down the drain)
11) Creating personal tax issues. Can of worms or yesterdays news?
12) "Too much in the pipeline" (what a good problem to have..... get more people!)
13) Potential fraud issues (totally negated by internal process and minor restrictions like targeting the offer to existing, active members)
14) Points being devalued by putting a price on the purchase amount (If I can get access to basic United & Delta statistics on this - so can QFF. And from what I see this argument is bogus).
15) Doing so will cannibalise the existing buy QFF points system (not if you run it as a limited time frame offer)
16) QFF is afraid of generating new revenue (never know!)
QFF SuperGods - here is how you design a perfect gaming system where everyone wins and you achieve business goals without pissing off anyone:-
- 1 Purchase per year
- Minimum purchase (10K+)
- Maximum purchase (150k)
- Under 2c/point all-in
- Can only purchase if earned more than x,xx_ points in past 12 months
- Targeted offer only to members who have paid for flights in past 12 months
- Make it a 'once off deal'
Any offer to buy that is highly restrictive over 2c/point with low purchase limits is likely to fail so best not to trial it out in this fashion.
I can think of a few other minor issues but my fingers are ready for zzZzz.
The PR & Communications opportunity here is equally as large. You'll also get an influx of new members from all over the world wanting to partake and checking out the program. For some this may be the first time they have engaged with the Qantas brand.
You're welcome.