FORLOOP Articles

3
Aug

Predictive Analytics to Build Customer loyalty

Loyalty, and loyalty programs in the airline industry are huge. In fact, there would be very few airlines in the world without a loyalty program When customers are faced with so many travel options, loyalty programs can often be the key differentiator for customer choice and retention.

In the early days, loyalty programs were based on giving the same points and offers to everyone. Predictive Analytics has changed all that, as airlines have had to become smarter as most people join multiple airline loyalty programs.

Predictive Analytics in building customer loyalty is now utilised to analyse trends and customer behaviour from multiple sources.  The objective is to improve customer engagement and satisfaction by only serving offers which are most likely to be taken up. This ensures a customer centric business model.

For instance, relevant offers, products and services can be personalised to a customer based on the airline's knowledge of their preferences and travel habits. This targeted approach has the dual benefit of being able to offer the highest value products to the most loyal customers, and minimising customer churn by recognising those customers that are at greatest risk of switching their business to another carrier or loyalty program. But with most airlines now deploying a similar predictive analytics strategy, the next horizon will probably see the use of Artificial Intelligence by pulling data from external sources to serve up real time relevant offers.