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A proposal of loyalty program for Air New Zealand

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A proposal of loyalty program for Air New Zealand
A proposal of loyalty program for Air New Zealand
Introduction
Air New Zealand is the biggest airline operation within New Zealand, and offers a fantastic airline service around the world. Our airline offer first class, business class and economy class to all customers. However, we plan to increase brand awareness, market share, sales and profit in the future, thus we want to launch the loyalty program to increase the number of loyal customers. This report includes loyalty program, customers’ demographic, CLV, wallet analysis, the value of customers gaining, the benefits for our airline, communication strategy and cost. Finally, I will explain those elements below to conduct a clear and effective loyalty program for the airline.

Loyalty program
Recently, Jetstar has launched a member club program to attract customers in the market, and we should take tactics to protect our territory. Advertisement only can maintain the awareness and sales within a short term. Thus, we need to launch a loyalty program in our business to increase the awareness and sales for a long term, and also maintain the relationship with the current clients and attract future customers. Moreover, we can gain more benefit within 5 years or longer once we use the airpoint program to engage more loyal clients. The airpoint program can improve the relationship between our airline and clients, and then a trust will be formed between our airline and clients. They will continue to buy tickets from us, which would benefit us for a long term. Thus, the airpoint program is a valuable project to invest.
Airpoint Card
We would issue an airpoint card, which will help ticket buyers collect the points from their consumption. The airpoint card has three types card, and they are silver, gold and platinum. In other words, the airpoint card holder is our VIP guest, and the card will be valid within 5 years. The distance of 1000 kilometres can collect 1 point. In

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