Velocity Frequent Flyer partners with freedom for launch of new loyalty program

At a time of waning participation in loyalty programs, re-designed myfreedom program debuts with airline partnership offering points and other rewards

Virgin staff with free freedom throws given away to launch the new brand partnership
Virgin staff with free freedom throws given away to launch the new brand partnership

Virgin Australia’s Velocity Frequent Flyer and freedom have formed a new partnership as part of the launch of myfreedom, the furniture retailer’s new customer loyalty program.

myfreedom will allow customers who sign up to the program and link their Velocity account to earn one Velocity Point per $1 spent when they shop with freedom in-store or online. Members will also receive $100 in freedom credit for every $2000 spent, bonus points offers and in-store benefits as part of the program. Members will go into the draw to win one of seven weekly prizes of 100,000 Velocity Points when they join myfreedom and link their Velocity account.

“Freedom is committed to providing its customers with great value. This exciting new partnership offers exceptional value to both myfreedom and Velocity members,” said freedom general manager of marketing, Jason Piggott, in a statement.

Velocity Frequent Flyer CEO, Karl Schuster, added the program will give members more ways to earn points and get closer to getting a holiday. The partnership comes off the back of research conducted by the airline that found 87 per cent of Australians believe buying furniture is almost as refreshing as taking a holiday, with millennials and Gen X respondents leading the list of supporters.

The launch comes shortly after cinema chain, Hoyts, re-designed its loyalty program, Hoyts Rewards, as part of an ongoing drive to improve customer experience in the cinema and combat the widespread trend of program fatigue among Australian consumers to offer instant benefits and new membership tiers.

Despite the popularity of Amazon Prime, the behemoth of paid customer loyalty programs, which counts some 100 million members in its ranks, the member participation in many programs is languishing. The recent For Love of Money 2019 report found less than half of Australians participating in loyalty programs have actively used their card or number when making a purchase in the last 12 months.

It's the lowest number recorded in four years in the annual consumer study, which takes the pulse on customer loyalty and Australian loyalty programs, commissioned by customer loyalty consultancy, Point of Loyalty.  The reasons for people losing interest in a program is when the rate of earning is too low or the value of points is too low. 

The Point of Loyalty CEO and founder, Adam Posner, told CMO that from the business side “Loyalty programs are seen as a way to connect customer data and also give more value back to customers to get that incremental spend... and retain and grow the value of my existing customers."

On the other hand, consumers have certain expectations, which are growing all the time, that a program should deliver on. 

CEO and founder of Loyalty & Reward Co, Philip Shelper explained to CMO the heightened expectations” of members means any business has to keep investing to ensure their customer loyalty program delivers.

“The average person’s expectation of receiving a personalised service is increasing. It’s not just about getting an email with their name at the top. It’s about getting communication across a wide variety of channels serving up specific products they know will resonate.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia.   

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