The value of loyalty: How Qantas and Bookworld built profitable businesses
From customer acquisition to customer retention and the cultivating of brand advocates in between, a good loyalty program can have a huge impact on a company's bottom line as two of the best in the business demonstrated at the ad:tech conference held in Sydney in March 2015.
For Australian airline Qantas, the benefits of its Qantas Frequent Flyer loyalty scheme, first launched 27 years ago, keep adding up. With 10.6 million members – effectively every second Australian household – the pay-off for Qantas is substantial, according to Qantas Loyalty chief marketing officer Stephanie Tully, who delivered a keynote address at the conference.
"The exciting thing from a marketing perspective is that it gives us 27 years of history on those members," Tully said, adding that the scheme has a "strong presence in the affluent sector, but also a growing presence in the mass market as well".