The tier-based system in reward programs has a two-fold impact. Firstly, it acknowledges and honors initial loyalty. Secondly, it encourages future purchases with an award structure that gets progressively better with more consumer activity.
Virgin Atlantic's Flying Club is a loyalty membership that is precisely a triple tier-based system. Individuals are granted access at the Club Red level, where they can earn miles on flights and get discounts on their travel necessities like rental cars, airport parking and hotels. The next status is Club Silver where members have a 50% increase in point-earning and enjoy expedited check-ins and priority standby. Virgin Atlantic's tier-based system concludes with Club Gold -- flyers get double miles, as well as priority boarding and entry to exclusive clubhouses at the airport.
Tiered Airline Loyalty Programs
Virgin Atlantic's Flying Club Operates on a Tier-Based System
Trend Themes
1. Tiered Reward Programs - Offering tiered reward programs acknowledges and honors initial loyalty while encouraging future purchases with an award structure that gets progressively better with more consumer activity.
2. Triple Tier-based Systems - Incorporating a triple tier-based system in loyalty memberships provides more incentives for consumers to earn higher statuses and rewards.
3. Priority Standby - Providing priority standby as a reward for loyalty can benefit both the airline and consumer by increasing efficiency and customer satisfaction.
Industry Implications
1. Airline Industry - Tier-based loyalty programs can be applied to the aviation industry to increase customer retention and engagement.
2. Hotel Industry - Incorporating a tiered reward system in hotel loyalty programs can increase customer satisfaction and encourage more bookings.
3. Car Rental Industry - Offering tier-based reward programs in car rental companies can encourage customer retention and repeat business.