What is left of true 'loyalty'

[leny]

With recent events, I, as well as many others, have been able to become:

1. Qantas Platinum as a result of double SC promotion
2. Velocity matched Platinum tier member with Velocity
3. IHG/Hilton highest tier member thanks to Velocity
4. Europcar Privilege elite, again through Velocity
5. AClub Gold thanks to Europcar

In effect, some of us are walking around as 5-time elite members, with so called 'loyalty' cards in our wallets, even though all that was needed to start this cascade of highest tier recognitions was half the amount of loyalty with just one program (QFF in my case).

I have rarely, if ever, needed to be a member of any of the other four programs.

What is going on here? Does true loyalty to a brand mean anything anymore? I am walking around with these 5 premium cards in my wallet, but have no history to show for them, at all. How can I, and why should I be treated the same way as the brands' most loyal and frequent of guests/customers?

 

[777]

How can I, and why should I be treated the same way as the brands' most loyal and frequent of guests/customers?

I think it helps to think of them all as marketing schemes and assume you're being marketed to not rewarded for their loyalty.

 

[connieguy]

With recent events, I, as well as many others, have been able to become:

1. Qantas Platinum as a result of double SC promotion
2. Velocity matched Platinum tier member with Velocity
3. IHG/Hilton highest tier member thanks to Velocity
4. Europcar Privilege elite, again through Velocity
5. AClub Gold thanks to Europcar

In effect, some of us are walking around as 5-time elite members, with so called 'loyalty' cards in our wallets, even though all that was needed to start this cascade of highest tier recognitions was half the amount of loyalty with just one program (QFF in my case).

I have rarely, if ever, needed to be a member of any of the other four programs.

What is going on here? Does true loyalty to a brand mean anything anymore? I am walking around with these 5 premium cards in my wallet, but have no history to show for them, at all. How can I, and why should I be treated the same way as the brands' most loyal and frequent of guests/customers?

You only get the status for 12 months or in the case of the Hilton for 6 months. During that time you are expected to retain the status level. I suspect that in 12 months a lot of those cards will be no longer active. All that has happened is, in effect, 12 month top tier taster to try to get you like the treatment and to lure you to spend enough to retain the benefits.

VA has done an exceptional job in offering the best top tier taster I have every seen created. Well done VA.

 

[oz_mark]

What is going on here? Does true loyalty to a brand mean anything anymore? I am walking around with these 5 premium cards in my wallet, but have no history to show for them, at all. How can I, and why should I be treated the same way as the brands' most loyal and frequent of guests/customers?

A loyalty program is nothing more than a structured marketing effot, designed to encourage you to spend more with the company promoting the program. The idea being, that they will reward you for spending with them.

So the new cards you have got are basically attempts to get you to spend more with them.

 

[leny]

I agree that this is a taster and I would be tempted to stay with these businesses to enjoy the benefits they offer, but I certainly believe that they are pi****g off their truly loyal guests, who might not remain so loyal given the dispersion of perks to 'nobodys'.

 

[leny]

And I think that this whole new exciting Velocity Australia thing will blow over once all these loyalty cards do start expiring! Unless there are some more permanent benefits, instead of being a once off in a lifetime.

 

[777]

I agree that this is a taster and I would be tempted to stay with these businesses to enjoy the benefits they offer, but I certainly believe that they are pi****g off their truly loyal guests, who might not remain so loyal given the dispersion of perks to 'nobodys'.

Clearly this is an issue that VA - in particular - need to balance very carefully. There's a probably a number they can absorb and it will be barely noticeable but there's a certain point where in order to add benefits for more people you effectively dilute the benefits of others. At some point the lounges become too full, the premium queues become too long, the person who is used to sitting in row 3 (that would be me!) starts getting bumped to row 5 or 6 and it becomes appreciable that they're missing out. I don't think they're there yet but it will be important to get it right.

 

[connieguy]

I agree that this is a taster and I would be tempted to stay with these businesses to enjoy the benefits they offer, but I certainly believe that they are pi****g off their truly loyal guests, who might not remain so loyal given the dispersion of perks to 'nobodys'.

Top tier FFers are not 'nobodys'. They have demonstrated their ability to spend enough on travel to earn top tier status and would have earned their status by real butt in the seat miles. They are an excellent tightly targeted and I suggest desirable market for both VA and their benefit partners. The VA partners get to benefit from all the VA promotion that will, in effect, deliver big spending customers right into their open doors.

 

[simongr]

I think in reality most people are not aware of the status match and don't really care about how other people got status - all they care about is their own status.

 

[maninblack]

Top tier FFers are not 'nobodys'. They have demonstrated their ability to spend enough on travel to earn top tier status and would have earned their status by real butt in the seat miles. They are an excellent tightly targeted and I suggest desirable market for both VA and their benefit partners. The VA partners get to benefit from all the VA promotion that will, in effect, deliver big spending customers right into their open doors.

Right. I keep seeing people saying "thank you thank you VA" on here. What? As top tier flyers they are thanking us for joining their program by giving us a few up front perks to kick off what they hope will be a long and lucrative relationship for them. I applaud it as good marketing, good strategy and probably good business. When you get comped into a high tier of a program it is an encouragement to use that company and the benefits you might receive. It generally works from my experience. I think Virgin are still running the promotion so they have not reached saturation point yet.

 

[scottpilot10]

I like that QF staff recognise me have a chat about ordinary things and go out of their way to help me. I like the controlled informality of Qantas where I see rude people treated accordingly and nice people looked after. The point of difference that Qantas has is their experienced staff that have a good old fashioned service ethos. So what if they don't look like models and cavort with all that contrived jolliness that I get on DJ. AJ look out, if you don't look after your staff, you are just another carrier. Attract and retain good staff and I will continue to fly QF.

 

[connieguy]

Right. I keep seeing people saying "thank you thank you VA" on here. What? As top tier flyers they are thanking us for joining their program by giving us a few up front perks to kick off what they hope will be a long and lucrative relationship for them. I applaud it as good marketing, good strategy and probably good business. When you get comped into a high tier of a program it is an encouragement to use that company and the benefits you might receive. It generally works from my experience. I think Virgin are still running the promotion so they have not reached saturation point yet.

For me I will retain both QF and VA WP. What is new to the VA offer is the top tier hotel and car rental statuses. Before I booked what ever was the most convenient but now my spend, from both QF and VA flights is focused to my new top tier hotel and car rental providers. This then gives them access to the matched FFer's original program customers, who may not have been their customers.

Very clever JB and the VA team. One can only wonder at what JB would have done with QF?

 

[leny]

I like that QF staff recognise me have a chat about ordinary things and go out of their way to help me. I like the controlled informality of Qantas where I see rude people treated accordingly and nice people looked after. The point of difference that Qantas has is their experienced staff that have a good old fashioned service ethos. So what if they don't look like models and cavort with all that contrived jolliness that I get on DJ. AJ look out, if you don't look after your staff, you are just another carrier. Attract and retain good staff and I will continue to fly QF.

I couldn't agree more with you on this.

 

[Mal]

I don't really understand. Status matches and shortcuts are nothing new. They happen frequently. So what if someone is top tier for a year. They either need ti show loyalty to retain or drop down the tiers.

 

[Undercover Brother]

It should be no surprise to anyone in this day and age that a company will mostly spend 3x more (in money and effort) on trying to obtain a new customer, rather than please an ongoing one.

 

[drron]

without status matching many of us would not change as it would mean a year in the wilderness.
I status matched my Hhonors diamond status with SPG.So for 12 months I had top tier in both programs and basically played them off against each other.It certainly helped that my first SPG stay in Madrid i was upgraded to a 6 room suite that overlooked the route of the night time parade for spain day.I developed the royal wave

So SPG have a new loyal customer thanks to that status match.so thats why they do it.

 

[Justchecking]

I agree, it's just a marketing ploy to assist you in not shopping around and instead just booking into the Hilton or whatever loyalty brand card you have. A lot of status elites will drop off the radar within 6 months. If you've been comped platinum with an airline you've still got to spend like a plat to keep it. Something for nothing it isn't.

 

[harvyk]

I think that we need to stop confusing "Loyalty" and "Loyalty Program"

"Loyalty" - Using a particular company for a product or service regardless of any other factors

"Loyalty Program" - A program designed to create additional revenue for the company running it by encouraging customer loyalty to chosen companies. Apart from the name "Loyalty Program" containing the word loyalty in it the two are mutually exclusive. If it was a true "loyalty" program twice a year flyers who only ever fly QF (and don't even look at other websites) could be considered more loyal than a QF WP who is also a DJ gold...

Just food for thought...

 

[JohnK]

In effect, some of us are walking around as 5-time elite members, with so called 'loyalty' cards in our wallets, even though all that was needed to start this cascade of highest tier recognitions was half the amount of loyalty with just one program (QFF in my case).

The cards you have in your wallet mean nothing until you use them.

And when you start using their services they have achieved their goal of getting money/loyalty from you and in return offer you what costs very little to them but you feel is a good deal.

e.g A hotel charges $200/night on a basic hotel room, charges $22 for breakfast that in reality costs the hotel $7 and charges $25 for internet access that in reality costs the hotel <$1.

Without status you would not stay at that hotel due to the exhorbitant charge for breakfast and internet access. Through so called elite status you now stay at that hotel and they offer you free breakfast and free internet access which in reality costs the hotel a lot less than what they actually charge you for it but they now make a tidy profit on that hotel room plus incidentals.

At the end of 12 months you will either keep that status or lose it.

 

[samiam]

Top tier FFers are not 'nobodys'. They have demonstrated their ability to spend enough on travel to earn top tier status and would have earned their status by real butt in the seat miles. They are an excellent tightly targeted and I suggest desirable market for both VA and their benefit partners. The VA partners get to benefit from all the VA promotion that will, in effect, deliver big spending customers right into their open doors.

Of course, there are those who have obtained WP, as alluded by the OP, through double SC promotions. I'm not saying that the mechanism is invalid, just pointing out that all 'real butt in the seat miles' are not equal, and that such promotions will not always be tightly targeted nor deliver big spending customers.