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Tuesday, July 7, 2009

An update: Which came first, loyalty or rewards?

(Or, "Is loyalty the cause or the effect?")

Moments after I published the posting about loyalty programs this morning, colleague Steve Marx forwarded an email to me that he had received from Delta Airlines, calling it a stroke of marketing genius. It said:

"We understand your ability to travel is more restricted this year, due to the economy and other factors, but we hope you'll continue to fly with us and enjoy your Medallion status benefits while continuing to add even more Medallion Qualification Miles to your balance."

The email then informed Steve he would receive a “Jump Start” of 15,000 free miles toward Medallion status.

Implications: Losing his preferred status with a frequently-used carrier may have prompted Steve to consider an alternate airline as his primary carrier. But Delta pre-empted that consideration by continuing to treat this valued customer… like a valued customer.

Jim Hopes, another of my colleagues, received a similar email from Delta. Here's how he reacted: "It made me check my account online and I realize now I still have a shot a Platinum for next year. Not guaranteed, but now it’s feasible. About a month ago I had given up on the notion. I will remember to consider Delta for every trip yet this year. Who knows? I could be Platinum again."

Historically, Medallion miles have been the reward for loyalty; today, they may be the cause of it.

Mike Anderson

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