Friday, 12 December 2008

If you are buying loyalty, the price apparently went down

Our favorite microcosm of loyalty experiments, the airlines, have apparently devalued their currency. At this rate they will beat the British Pound when it comes to debasing their currency, and that's saying something.

The WSJ reports that "plunging value of fliers' miles saps loyalty".

From this middle seat, this confuses loyalty with discounting. I'm not loyal to an airline because of frequent flier miles. I get an effective discount on my ticket, which attracts repurchase. Perhaps this basic confusion is at the heart of poor customer relationships in that industry.

Source: Satmetrix

0 comments: