Delta SkyMiles: measuring its influence on financial performance

In Loyalty & CRM by vincentreLeave a Comment

Delta SkyMiles: measuring its influence on financial performanceNear the end of January, Delta Air Lines announced that it achieved an $854 million annual profit, an impressive feat given the global economic conditions.

The ‘About Delta' section briefly mentions how its SkyMiles program is the world's largest FFP. Certainly, it had to help out in some degree – think of all those business travelers that stick to Delta for leisure trips because of all the miles accumulated.

But how much of Delta's success can be attributed to SkyMiles? Consider the following variables in the decision making process:

· Pricing – If Delta's price for a given route is the same as its competitors, SkyMiles could be that added weight that gets someone to book Delta over another airline. Delta could also potentially secure bookings for a few dollars higher (or potentially more) if the miles are that important to a particular customer.

· Route network – Delta is a global airline with destinations and partners all across the world. However, some places which would require a transfer on Delta's network could be a direct flight for another carrier. Some people prefer the convenience of direct, even if it's at the cost of points.

· Scheduling and frequency – If certain destinations are not available at the right time of day or week, some customers may prefer to fly a carrier that offers the availability.

SkyMiles can make some very nice swings in Delta's favor. But at the end of the day, it comes down to understanding the needs of customers (i.e. I want to fly here in a safe and affordable manner) and providing a relevant offering that fulfills those demands (for which Delta is succeeding based on its earnings).

Customer loyalty engagement,  loyalty programs, customer retention, social media marketing, and multichannel marketing will be key discussion points at the upcoming Loyalty World USA event in Las Vegas, October 29th-31st.

The world's leading B2C brands will be presenting case studies and their strategies, so if you're looking to refine your loyalty and customer retention campaigns, you need to attend.

Click here for more information

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