Qantas: External partnerships crucial to customer loyalty growth

Qantas CMO talks about the 'coalition loyalty business' driving the Frequent Flyers customer loyalty program

114248
114248

A ‘coalition loyalty business’ is the driving force behind the high engagement of Qantas Frequent Flyers, according to its CMO.

Presenting at the Ad:Tech 2015 conference, Stephanie Tully, EM of brand and marketing/CMO for Qantas spoke about how the airline has turned a consumer loyalty program into a strong revenue stream with the help of business partners like Woolworths and Optus.

“People often ask us, how does a loyalty program make money? Today, Qantas’ biggest source of revenue for the rewards business is to sell points to our partners,” Tully said.

Qantas business partners, such as the major banks, Woolworths and Optus, purchase Frequent Flyer points as another service to customers as part of its overall rewards strategy, because “they can see that this shifts the way their customers in the market interact with their brands.”

Tully said Qantas refers to this arrangement as a “coalition loyalty business”, which leads to a “multitude effect”, as consumers engage in the program in multiple ways. For example, since being linked with Woolworths’ Everyday Rewards in 2009, the Frequent Flyers membership base has grown by more than 80 per cent.

Off the coalition loyalty strategy, Qantas has also born some new businesses. One example is the Qantas pre-paid travel card, released in 2013 as a joint offering between Qantas and major banks. The card was a means to engage customers by combining finance and travel, while also serving as another Frequent Flyers card.

“We launched it very conservatively because obviously people earning points with their [existing] Qantas credit cards are key to our business,” Tully said. “But we actually saw that people who had Qantas credit cards were starting to spend more with the Qantas cash card as well… it shows the more engaged you get someone, the more likely they are to participate with all partners.”

Qantas also began to set up customer communities such as the Qantas Golf Club and Qantas EpiQure, a wine retailer.

“The Qantas loyalty business as a strategy is really an innovation growth engine. A lot of the growth opportunities we've had are because of the continued investment in those other business,” Tully added.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

We can deliver DIP N PAY JP54,JET A1,D2,FOB @Rotterdam CRUDE OIL CIF /DIP N PAY TANKFARM CHINA ,we have sellers that can work based on st...

JSafra Bank

Google+ and Blogger cozy up with new comment system

Read more

JP54,D2, D6, JetA1 EN590Dear Buyer/ Buyer mandate,We currently have Available FOB Rotterdam/Houston for JP54,D2, D6,JetA1 with good and w...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

Great content and well explained. Everything you need to know about Digital Design, this article has got you covered. You may also check ...

Ryota Miyagi

Why the art of human-centred design has become a vital CX tool

Read more

Interested in virtual events? If you are looking for an amazing virtual booth, this is definitely worth checking https://virtualbooth.ad...

Cecille Pabon

Report: Covid effect sees digital events on the rise long-term

Read more

Thank you so much for sharing such an informative article. It’s really impressive.Click Here & Create Status and share with family

Sanwataram

Predictions: 14 digital marketing predictions for 2021

Read more

Blog Posts

A Brand for social justice

In 2020, brands did something they’d never done before: They spoke up about race.

Dipanjan Chatterjee and Xiaofeng Wang

VP and principal analyst and senior analyst, Forrester

Determining our Humanity

‘Business as unusual’ is a term my organisation has adopted to describe the professional aftermath of COVID-19 and the rest of the tragic events this year. Social distancing, perspex screens at counters and masks in all manner of situations have introduced us to a world we were never familiar with. But, as we keep being reminded, this is the new normal. This is the world we created. Yet we also have the opportunity to create something else.

Katja Forbes

Managing director of Designit, Australia and New Zealand

Should your business go back to the future?

In times of uncertainty, people gravitate towards the familiar. How can businesses capitalise on this to overcome the recessionary conditions brought on by COVID? Craig Flanders explains.

Craig Flanders

CEO, Spinach

Sign in