Interesting Interview with Aeroplan’s CEO

An interesting finding about the effect of successfully redeeming frequent flyer miles, from the head of the Aeroplan program:

One thing that’s very interesting is that when they do a redemption for an airfare or a gift card or an iPod they actually become more loyal afterwards for about a six-month period. Actually, the accumulation rate of the currency goes up substantially.

He suggests that frequent flyer programs aren’t just a rebate, they’re a way to leverage a relationship.

[B]y developing a longer term relationship with a consumer, you actually encourage them to focus their spending in a way that they wouldn’t normally do. And, it’s not normally because they get 1 or 2 per cent cash back, because that’s what loyalty schemes essentially represent. You’re actually becoming part of their behaviour and their everyday lives as opposed to just a transaction.

Read the whole interview.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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