Loyalty Program Popularity. Airlines Double Counting. Why do customers like loyalty programs? https://qr.ae/pNkcgW

As I highlighted in my book entitled FROM DISLOYALTY TO OMNICHANNEL CUSTOMER ENGAGEMENT: Brands Have Come A Long Way In Fostering Retention, Enrichment And Advocacy:

Loyalty programs give reward points to consumers for making purchases and let consumers redeem their reward points for gifts. Loyalty programs have a powerful value proposition because they offer rewards for spends anyway made by consumer. As a result, they’ve become very popular. According to reports, an average American is a member of seven loyalty programs, with some of them having as many as 15 loyalty cards in their wallet. I couldn’t find equivalent figures for the rest of the world but it’s safe to say that loyalty programs are dime a dozen in all countries.

What’s not to like about loyalty programs, huh:)

When it comes to Airline Loyalty Programs aka Frequent Flyer / Miles programs, I recently read that there’s another driver for their popularity, which is deeply rooted in an odd quirk of consumer behavior.

“Consumers mentally double count their reward points.” ~ Why the Survival of the Airlines Depends on Frequent Flyer Programs