Loyalty programmes as a direct sales platform: a cardholder segmentation based on air flight redemptions

There are increasingly more loyalty programmes that offer cardholders the opportunity of buying additional programme points or obtaining rewards, such as package holidays or air flights, by paying some of the cost in cash. This feature of the programmes, together with their very nature and structure...

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Main Authors: José Manuel Ponzoa Casado, Pedro Reinares Lara
Format: Article
Language:English
Published: Universidad del País Vasco (UPV/EHU) 2010-12-01
Series:Management Letters/Cuadernos de Gestión
Subjects:
Online Access:http://www.ehu.es/cuadernosdegestion/revista/index.php/en/numeros-publicados?y=2010&v=10&n=3&o=9
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author José Manuel Ponzoa Casado
Pedro Reinares Lara
author_facet José Manuel Ponzoa Casado
Pedro Reinares Lara
author_sort José Manuel Ponzoa Casado
collection DOAJ
description There are increasingly more loyalty programmes that offer cardholders the opportunity of buying additional programme points or obtaining rewards, such as package holidays or air flights, by paying some of the cost in cash. This feature of the programmes, together with their very nature and structure and the current situation in which the tourism sector finds itself, has allowed for their development as sales platforms offering services directly to their members.This work discusses the potential of such programmes as a tool for a better knowledge and segmentation of customers by differentiating between them on the basis of those who redeem their rewards on a points-only basis and those that do so using points-plus-cash.Using information from a leading, Spanish, multi-sponsor, loyalty programme, this article analyses the importance of redeeming air tickets only, as against other rewards, and cash contributions as a means of completing the redemption transaction. By means of decision trees, as a segmentation method, it can be seen how variables related with buying behaviour, within the programme member companies, have an influence on the redemption of air tickets by the programme’s cardholders.
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spelling doaj.art-5fb3e85880c440e1bcef0ec268c16f402022-12-22T03:15:21ZengUniversidad del País Vasco (UPV/EHU)Management Letters/Cuadernos de Gestión1131-68371988-21572010-12-01103197213Loyalty programmes as a direct sales platform: a cardholder segmentation based on air flight redemptionsJosé Manuel Ponzoa CasadoPedro Reinares LaraThere are increasingly more loyalty programmes that offer cardholders the opportunity of buying additional programme points or obtaining rewards, such as package holidays or air flights, by paying some of the cost in cash. This feature of the programmes, together with their very nature and structure and the current situation in which the tourism sector finds itself, has allowed for their development as sales platforms offering services directly to their members.This work discusses the potential of such programmes as a tool for a better knowledge and segmentation of customers by differentiating between them on the basis of those who redeem their rewards on a points-only basis and those that do so using points-plus-cash.Using information from a leading, Spanish, multi-sponsor, loyalty programme, this article analyses the importance of redeeming air tickets only, as against other rewards, and cash contributions as a means of completing the redemption transaction. By means of decision trees, as a segmentation method, it can be seen how variables related with buying behaviour, within the programme member companies, have an influence on the redemption of air tickets by the programme’s cardholders.http://www.ehu.es/cuadernosdegestion/revista/index.php/en/numeros-publicados?y=2010&v=10&n=3&o=9Loyalty ProgrammesTourism ServicesDecision treesDirect Selling
spellingShingle José Manuel Ponzoa Casado
Pedro Reinares Lara
Loyalty programmes as a direct sales platform: a cardholder segmentation based on air flight redemptions
Management Letters/Cuadernos de Gestión
Loyalty Programmes
Tourism Services
Decision trees
Direct Selling
title Loyalty programmes as a direct sales platform: a cardholder segmentation based on air flight redemptions
title_full Loyalty programmes as a direct sales platform: a cardholder segmentation based on air flight redemptions
title_fullStr Loyalty programmes as a direct sales platform: a cardholder segmentation based on air flight redemptions
title_full_unstemmed Loyalty programmes as a direct sales platform: a cardholder segmentation based on air flight redemptions
title_short Loyalty programmes as a direct sales platform: a cardholder segmentation based on air flight redemptions
title_sort loyalty programmes as a direct sales platform a cardholder segmentation based on air flight redemptions
topic Loyalty Programmes
Tourism Services
Decision trees
Direct Selling
url http://www.ehu.es/cuadernosdegestion/revista/index.php/en/numeros-publicados?y=2010&v=10&n=3&o=9
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AT pedroreinareslara loyaltyprogrammesasadirectsalesplatformacardholdersegmentationbasedonairflightredemptions