ABSTRACT
This chapter focuses on loyalty to explore what airlines have done, and what they can do, in order to build a loyal customer base and premium-price-commanding brands which will allow them to achieve the success that companies in others industries have enjoyed. Peeter Kivestu highlights that one critical success factor in developing loyalty is to pursue knowledge at the individual level. He stresses starting out simply, such as in terms of developing metrics and targeting just a few customer value components. He summarizes that continuous testing, measurement, and the implementation of continuous improvement facilitated by the appropriate processes, technologies, and corporate culture is critical to reframing loyalty. According to the Affinity Capital Exchange, in some markets, notably Australia, the uptick is even higher, prompting Qantas multiple non-exclusive relationships with banks in the country. The focus of loyalty programs more recently has been on the earning and burning aspects of miles, in some cases to the point of playing a game.
