Rewards points and miles hold true cash value. However, with fewer monitoring and protection measures in place than traditional bank accounts, the unfortunate reality is that loyalty reward programs are seen as easy targets by fraudsters.
Loyalty program members, especially those in the financial services industry, expect those companies to guard their personal information in the most robust way possible. And while 72 percent of loyalty program managers report experiencing fraud, many are challenged to build a case internally for this type of protection.
Economists report there is currently $238 billion dollars’ worth of loyalty currency in accounts that is vulnerable to hackers. This high value, relatively lower security and less protection (especially compared to bank accounts) makes loyalty and rewards accounts a prime target for hackers and thieves.
Rewards and frequent flier programs carry massive monetary value for airlines. A strong travel rewards program increases customer loyalty while generating revenue. But, if your rewards member base isn’t growing or points and miles aren’t being spent, it may be time to look for a new provider.
The right rewards mix encourages both customer engagement and point spend. But increasing loyalty rewards redemption requires a targeted customer segmentation strategy, often going beyond just typical travel rewards offerings.
What if a specific type of reward could create the ultimate travel experience, one that’s exciting, memorable, something your customers have never experienced before? Would you consider it a nice-to-have or need-to-have?
To help brands increase ancillary travel attachments, Connexions Loyalty partnered with research company Ipsos to survey a specific demographic: Millennials.
Revenue. It’s why airlines buy hotel rooms and travel agencies add ancillary products and providers. To generate revenue, travel inventory suppliers must be able to provide: