Posts Tagged ‘mileage’

AAdvantage Members Making the Most of Their Points

Tuesday, April 14th, 2009

While doing an update of the AAdvantage program I’ve stumbled across some interesting 2008 stats for the program:

Q: How many AAdvantage Awards were claimed in 2008?
A: The number of awards claimed in 2008 in each AAdvantage mileage redemption category were as follows:

MileSAAver® and AAnytime® Awards: 2,858,222
Upgrade Awards: 769,527
Product Redemptions: 407,074
Special Mileage Awards / Other Airline / Other: 780,533
Total Redemptions - 2008: 4,815,35

It’s pretty interesting to see that most miles (60%) are redeemed for flights using American Airlines even though there are 20 leading airline partners that members can redeem their points with. Total redeemed on Flights is an astounding 92%.

All flights within continental US are worth 25,000 points flying AA. A flight from New York to Los Angeles on American Airlines is worth around $382. Meanwhile, if we compare this with a 25,000 point merchandise reward we are looking at getting $250 worth of value for our 25,000 points. It certainly seems that AAdvantage members are making the most of their points.

-Me

Why we don’t overdo the mileage point programs

Thursday, December 11th, 2008

We received some pretty negative feedback today from a new user, but ALL feedback is welcome at Perkler so we were happy to hear it.

Not impressed, boys. Not cool. Should have connections to mileage accounts off the bat. I won’t use this. Ya lost me, and everyone I know. There are better options out there. I would never use this for networking. There are far too many other places to have to chat and connect with people. That is stupid. Posted by a visitor. 

 

The core issues raised here revolve around mileage programs and Perkler as a network, let me address these points.

Mileage Programs. In the Australian version of the site we have actually entered quite a few frequent flyer programs, purely because there aren’t that many and they have some good brands in them. But for US and other users we are concentrating less on the high-end points based mileage programs and more on retail. Why?

Because retail perks are more immediate and offer pretty much instant benefits to a much bigger number of consumers than the mileage programs.

Don’t get me wrong - we love unlocking the great merchandise and brands in Flyer programs and will do as we build relationships with airlines, but for now our focus is on retail because that’s what people need in the current economic climate. And because there are lots of cool brands there for people to build an affinity with and discuss.

Another point about Mileage Programs - people who are into them are really into them (just ask Randy Petersen). As a result our ‘Perkler’ is right - there are lots of products out there servicing that market. But in the end, even though they are huge these programs only represent about 20% of the total loyalty membership (in the US). So not only do we love retail, travel, grocery etc - we’d be crazy not to cater to 80% of people’s real memberships. Otherwise we wouldn’t be doing a very good job of getting that virtual wallet going. Remember Perkler is about ALL your memberships in one place.

Second point - Perkler as a network. We should get this straight from the outset. We are not trying to build Facebook, or Linked-In or any other uber-network. We are trying to use the community to simplify the loyalty and rewards experience. We think one of the keys to getting better results for consumers and retailers out of loyalty programs is sharing information, rating programs and finding out about programs from people.

Eventually we will link in (yes I get it) with the larger networks and are looking already at openid and Facebook Connect to integrate our community with them.

So, we may have lost this user (and everyone he knows) but we aren’t being flippant about the feedback - we appreciate it and take it on board. Rest assured though, because we don’t have blanket coverage of mileage programs doesn’t mean we have failed the loyalty test. People are much more than their airline travel!

Having said that I’m standing by Aeroplan - call anytime ;)

Justin