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Frequent flyer programmes – lucrative for companies, too

Frequent flyer programmes – lucrative for companies, too

Are you a frequent traveller or do your colleagues have to make frequent business trips? Then you'll have heard about the frequent flyer programmes offered by various airlines. But have you heard about PartnerPlusBenefit? Because with this "Lufthansa frequent flyer programme for companies”, employees earn BenefitPoints for the company as well as additional miles for their personal Miles & More accounts.

Get to know PartnerPlusBenefit. The free and powerful Lufthansa corporate bonus programme offers small and medium-sized enterprises (SMEs) unprecedented opportunities to save on travel costs for business trips and motivate employees. With free flights, upgrades and vouchers for excess baggage, frequent travellers are sure to enjoy the rewards.

Find out more and benefit now

Background information on the topic

Customer loyalty – a definition

Customer loyalty includes all measures a company takes to intensify and build a lasting relationship between suppliers and buyers. Here, the efforts of the company are not focused on attracting new customers but on its already existing customer base.1 The purpose of customer loyalty is the achievement of repeat business transactions2 by building commitment and brand loyalty.

Customer loyalty success factor

Many companies consider the acquisition of new customers a key factor for economic success. Even though the increased intensity of competition in many industries is leading to rising costs in acquiring new customers.3 However, studies show that, from a statistical perspective, acquiring a new customer is seven times more expensive than efforts to keep an existing customer and motivate this customer to purchase from the company again.4

Therefore, investments in systematic customer loyalty management should be a top priority. In addition, the full potential of a customer, such as high and stable profits and a good relationship, can only be fully realised over a longer period of time.

Moreover, satisfied and loyal customers recommend the supplier to others, making this the cheapest form of marketing to gain new customers.

Various tools for gaining customer loyalty

Customer loyalty programmes have become ubiquitous and are offered across all industries by almost every major company.
In particular, individual retail or service companies utilise these programs most frequently.5

The most commonly observed instruments for customer loyalty in Austria are:6
- Bonus programmes - Consumers receive a bonus by earning miles or points, for example
- Discount cards - Customers are granted a direct discount on their purchase by presenting a corresponding card
- Customer cards without regular incentives - The holder of such a customer card receives discounts or premiums only sporadically
- Points-related promotions - Customers receive adhesive dots for purchases over a certain value, which can be exchanged for a reward at a later date
- Couponing - The customer receives a bonus or a discount by presenting a coupon

When choosing the right customer loyalty programme, many factors must be considered. Here, the industry, the business model, the positioning, the operational and technical capabilities and the brand itself, play a key role.7

Frequent flyer programme – rewarding customer loyalty for business travel

Almost every airline currently offers a frequent flyer programme. Here, frequent travellers benefit from the regual use of the same airline through receipt of flight and product awards and benefits related to their frequent flyer status, for example.

Due to agreements between airlines or airline alliances, the use of other airlines is often recognised in a frequent flyer programme, making the programme even more attractive. After all, it offers more options for earning points.

Many frequent flyer programmes also work with other companies such as car rental or hotel chains. This means that the use of their services is also recognised within the frequent flyer programme.8

Lufthansa frequent flyer programme

Lufthansa offers two large, free frequent flyer programmes:
- Miles & More – the Lufthansa frequent flyer programme for individuals
- PartnerPlusBenefit – the Lufthansa corporate bonus programme for small- and medium-sized enterprises

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Footnote

1 See Wirtschaftslexikon24 "Customer Loyalty", online at http://www.wirtschaftslexikon24.com/d/kundenbindung/kundenbindung.htm (As of: N/A)
2 See Wirtschaftslexikon Gabler "Customer Loyalty", online at http://wirtschaftslexikon.gabler.de/Definition/kundenbindung.html (As of: N/A)
3 See Kundenbindung: Miles & More – Kundenbindung in der Luft (Customer loyalty: Miles & More – customer loyalty in the air), Oliver Wagner, Springer-Verlag Berlin Heidelberg, 2005
4 See Customer Loyalty, by Hans Jürgen Ott, Martin Hubschneider
5 See Frustration in hierarchischen Kundenbindungsprogrammen - eine empirische Untersuchung (Frustration in hierarchical customer loyalty programmes - an empirical study), online at http://www.wissenschaftspreis.org/fileadmin/user_upload/wp/Downloads/Einreichungen_2014/Blacha_Kirsten_Bewerbungsbogen.pdf (As of: N/A)
6 See Praxiswissen Kundenbindungsprogramme: Konzeption und Operative Umsetzung (Practical knowledge of customer loyalty programmes; conception and operational implementation), Alexandra Ranzinger, Gabler Verlag, 2011
7 See Praxiswissen Kundenbindungsprogramme: Konzeption und Operative Umsetzung (Practical knowledge of customer loyalty programmes; conception and operational implementation), Alexandra Ranzinger, Gabler Verlag, 2011
8 Wikipedia "Frequent Flyer Programmes", online at http://de.wikipedia.org/wiki/Vielfliegerprogramm (As of: N/A)