Topics>>Innovate Your Approach to Loyalty in the Digital Age

Innovate Your Approach to Loyalty in the Digital Age

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Tags:

  1. Brian Clough13:10
  2. Canada dry0:30
  3. Peter Ryan3:12
  4. Arad10:51
  5. Assam10:29
  6. Gardena9:56
  7. cutting edge8:48
  8. Box office0:54
  9. travel industry3:01
  10. loyalty program2:41, 3:12, 3:50
Mon, 24 Oct 2016|

Christopher Barnard, President, Points

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Automatically Generated Transcript (may not be 100% accurate)

I was local carriers overcome the complex. We throw in the year 2000 so we've been around the world is space for quite awhile now and seen many different changes. Do find that we title company allotted forum. It's space in general is very few people actually really Irish PM the underlying. Business dynamics for. Really true economics of loyalty programs. NII Canada dry Europe eyes to the Santa. Circled area com royalty around the world our estimation would be that world team generates approximately seventy billion dollars the Euro. In revenue. To meet travel passed the tallies are space. Seven and about 504050. Billion dollars in North America. Just by comparison the US. Box office take last year was about thirteen billion not. These figures are all of that stuff you read in Forbes magazine in post online about the US movie industry how much play. But bad industry gets. In in people's and a social and business conscience the loyalty industry is more than four times larger by revenue. Then US movie industry. So. See yet I think as a see through this presentation an important player loyalty that we think is really is a very good business. Is another seeing that. Ill winds and hotel sell to their members they style rooms. They sells heads in beds in bums on seats but they now also sell miles and whites to third parties. In fact. 60%. Of the miles and point people lying island outside of the brain and of that quality program took a sign of a plane flight. A hotel stay. That's third parties buying those miles and points from the airline or hotel program. That's a significant and again those purchases by third parties are back currency adds up to seventy billion dollars you're gonna put it. In context of one program. Take anywhere forum orange American large American network carriers. I'd I'd estimate that each one would be somewhere in between. A billion and how to two billion dollars annually in revenue from their frequent flier program. It would be shocking if they spent. That more than a billion dollars still runs programs in up probably at a three corners of the kind of billion dollars you're right not programs that's. Costa why bully cast of the redemptions custom technology overhead and marketing what I. So that loyalty program is putting all over a billion dollars a year into the operations. Or wood is actually not a great business or otherwise. Where is expensive high cap forecasts fuel is expensive. Highly were passed really unpredictable. So the world to programs have been burned though at a little bit actually have the saviour of the travel industry or the last twenty years. All via partners in a deal worth as a C a bit we're every major north American and wine program. In hotel program but Peter Ryan loyalty program partners in their MySpace have gone bankrupt at least whites and some twice the last fifteen years. N all of them have secured dare day period Odeo key financing going through that because we process and with their cash was from the loyalty programs. Douglas doubled anytime minor economics as a think that is a fundamental. Piece of the puzzle I think people need under stay and bet. The other point is that Nawaz loyalty of big business it really effects are very worried businesses and just some of these that 67 in has so as a travel part for itself. I'm 67% of travellers are in some way engage in loyalty program along the way. So knowing that using that information yields on average that information. And to get them to do something that you want the deal. If they're not part of that if if that will determine NASA joys improve your brain and but being involved maverick that information. And transaction is important and if you look at our retail and in the payments world. It's it's certainly. Stall there you see that dominance of Walton for a rams throw. You know 45% of consumers say that they will change they're buying behaviour based loyalty programs. These are these are just some either somewhat or leave it there through the make you can read through them. Am I pick back background image for a very important progress cause that is actually the power wealthy. That is what people think of the Euro clinging on his miles and points. And a flight did DDB to stay at that hotel where you know pay for my. Hotel room at that hotel what my points in two he. It's an extremely aspiration off. The psychology that people get engaging his loyalty programs will now. Nine Tanzanian town people usable two miles to go because until wedding in the morning. Canada's been didn't want to pay for that the time. But the notion that I'm actually earning is up to go go out to Fiji Hawaii. I'm is really one of the drivers of loyalty for Reynolds. And that's where I think point restore important. They had been president and driving this business for thirty years now. M been very helpful for the brilliance and a along away. We that is so using them in in much different ways to a platform at flights we watched the first. RO TA focus our hotel booking. I'm bit gave travellers a choice of rewards so you book through our channel Cobb quite sound. And you can shoes Europe bonus of free got WiMax. We convert the commission we get through their hotel booking infrastructure. Into the finds that we need to then purchase you when you're going to choose a last amounts plan or why miles or. Base money say five miles and we bylaws must review and adviser manure account. Now you've booked your hotel room in you've got their reward this most important deal. I'm easy slack it it's likely that through that that choice. We've taken that. Technology and actually now create a private British experience for African flier program. The miles per programs. Any real well men. The free file program C used that seem. Incentive. To gain extra revenue yeah more readily into their program. By engage their members more by aligning Africans Weimar bonus for booking hotel made. In a much higher degree than they can get anywhere else in in this example which has because their average transactions we have way forward thousand miles. For a 400 dollar bucket. The margin that we get for a 400 dollar booking we are able to average are access the industry to give somebody if 4000 mile bonus. When someone else they'd be used to. 400 miles of these little break credit current. But again. That's 1000 miles gets that person much closer. To that notional off why indication. An end. That is really a driver if you go back similar statistics in this presentation only real woman package some of the statistics though on how much loyalty drives at activity. We believe before about a mile bonus now for a hotel bookings. Is is a very compelling and very compelling opportunity and engaged will ultimately. You know it is not just our technology this has been starting to really show up in the OTA space up around the world. Some of the big guys like undergo an RSC trip. Armaments and smaller start ups like a rocket. Right miles of the boring about cal ago I'm all adopting that seem I have proposition of if that customer is unhappy don't have irrigation hotel loyalty program all of their hotel properties don't have a loyalty program that their interests within. Why not give them the miles or points that bill actually address the it was not just their traditional energy space we type a bit about the -- economy our earlier in the conference that. In Italy India as a good example. The inaudible white river relationship with Qantas at last W this week last week. Better than doubling in some other activities again understanding that the customers. Is there in competition with a hotel space for that room night or replaced through that that customers today. Then they have to be completely under on the loyalty field as well. Not just I'll be indeed. Back under liberian leading organisations like Newburgh trying you know as well. So inability resembles a pretty cutting edge people would typically think a little bit more younger demographic focused organisations. There are able to. Start testing and learning. The ability to affect people's actions. In behaviourist by making the rate. What incentive at a time knowing that the member of the membership rewards programme while. I'm up in Canada in March program on but yesterday program as well. As I just travel related unit. Now you see Starbucks changing their loyalty program. Those Starbucks stars are now straight shot outside of the star bulletin boards. A staff writers seem that's seen marked off our freedom fighter programs have been very very good at developing a master the years and strainer monetise their loyalty program. As a second business. Now cycle ideas. Ian has struck rockstar is just another product. The Starbucks has now able to sell. I think when you add up the fact. That there are. Thousands of programs around the world. End very engaged membership base so that is one thing I would disagree with JR Gardena and industry statistics show these programs continue to grow. One I'm worried hotel program partners of one of the major Buenos. Is still adding a million new members a month. And as a percent decades decades all brilliant still getting back kind of traction on attracting new members of the propositions. In the US a wannabe average has almost 29 different royalty provides end one will look at that is negative confusing met Ed I don't disagree with that that. A lot of ferez can get pretty confusing. Part of that is a little bit of the benefit programs the Assam in my bias is more about industry partner to the world to programs. You're taking a severe trip around the programmes does. Three that building which like they can place. C tell her multiple you know her twenty different places for a seem C minus employing. They had done an amazing job of signing a mile to a co brand credit profile Arad a penny a quarter selling and that seem mild to. Put offer for a penny how radical kind of for a one point 75 cents. Flower shop for two cents in if we actually self close it was a miles a year to any consumers to tie up after account for 33 assets. That's seen skew that seem pride at the same widget that frequent flier mile. Is being sought for a penny a quarter after three and a half cents. And that's kind of there that the value traded by the S multiple engagement in theory. Engaging proposition her. So. The real. The real focus that that we are seeing in the industry in and try or product suite is hoping these programs get their points and miles I would have thereon. What guidance in. Because LaSalle engaging they have so many millions of members. I'm Tim Jack those Mars and whites as idea affordable percent of all over foreign payments. Into as many channels passport. So we use the model definition westerner. The new world more war and Warner free phone will just the move that the auditor has put billions of miles and points. I'm. As I mentioned we've developed a network of water from the partnerships around the world. Cannonball memberships. Insider programmes therein to regenerate but one analyst. I'm getting closer a billion. Different consumers. And contact of that immigration and we don't we col loyalty commerce platform gives us transaction capabilities into each of these loyalty program accounts. So much like a PayPal for royalty. We can confirm that Zhou is a member of the village program. We in the region edges account and follow a mile or put another mile in in conduct a financial transaction. Beside that to me energy that process of helping third parties and use that information to Sanjay. To use their private service and were seeing a layer of activity and interest from many different. Areas that again. Back to that very first slide of how dominate loyalty is in no overlap between somewhat larger industries. Among our working now to engage those 700 million different consumers in a different way. I'm gonna rule would try do a simple fired back that taps so one immigration Brian Clough one in theory. Expeditious a very efficient based on our. Clutch going to be key hires and any third party pipeline whether its and LTA. A boutique hotel chain. A digital wallet like go same saying pay hero arrange a pay. And online retailer. They can all add. It's Secretary General loyalty program began all add functionality to Vincent. With the program point two actually analogy is think about the points as we heard betfair. Some other of those. 39 programs or someone has America. Per household. To be used as a really hard. Very targeted. Incentive make retired or personalisation look for a our vision is still how that distribution showers hotel property area retailer. Two. Be very targeted with that information. In get all the way down into a the experience where maybe wakin astore. If you are for a 1002 and fifteen delta miles away over 90% chains are buying that's what. And I think that's really the power of personalise loyalty. Because. GD. The end buying those miles is good for the program economic forum program. Environs master retailer. As a side by some house that's under consumer attitudes towards changing your purchase behaviour. Isn't is in many cases cheaper from a retailer than offering. 15% half. Or the other day. Twenty hours as the same value for 20 for me twenty dollars isn't very out operational. But 2000 master Jay maybe not last 2000 miles but he needs to get away. So buying a sweater get into Hawaii. That is a pretty powerful. Multi trade for the retailer. Whether loyalty program then I'm sedan for.

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