Rewards points programs are one of the best ways businesses maintain relationships with new and existing customers. The program not only assists enterprises in attracting buyers, but offers strong incentives to customers to make repeat purchases. It also ensures that the existing loyal customers still feel valued by the business and may be willing to introduce their friends and family to their business. By this, it’s much easier for companies to achieve business goals with limited resources and budgets.
Before joining a reward points program, you should clearly understand the program, the benefits you will enjoy, and the type of loyalty program that suits you. In this guide, our focus is on the airline loyalty program’s frequent-flyer points program. Let’s explore all you need to know!
What’s a loyalty program?
Loyalty programs are sponsored by retailers and other corporations to offer discounts, rewards, and other incentives to attract and retain customers. They are designed to be a reward for customers’ repeat business. The more you prioritize the merchant and spend, the higher the rewards.
Many companies benefit from loyalty programs by developing customer loyalty and providing vital details on how customers spend, the type of products, and the type of offers they find appealing.
How did frequent flyer programs come about?
Three decades ago, airline loyalty programs, popularly known as frequent flyer programs (FFP), were introduced to encourage customer loyalty. Frequent flyer programs gained traction when various airlines started tracking their customers and flight activities between the 1950s and 1960s. However, airlines did not fully implement the idea until 1979, when Texas International Airlines established its first frequent-flyer program, mileage-based, to offer customer rewards.
As a customer, the frequent flyer program can assist you in earning a free flight. But, it still can be confusing and overwhelming considering the strict airline rules while redeeming and collecting the miles. New to flight rewards? Read and learn more about classic frequent flyer points program.
Should airline rewards be of concern to you?
Airline rewards should only bother you if you don’t have answers to the questions below. All main U.S airlines have loyalty programs. The idea is that if you often fly and spend money with one airline, you will get points or miles to redeem for better seats, free flights, and preferential treatment.
The term ‘miles’ is what most airlines refer to as reward currency. It’s not about the distance you’ve flown.
Should you sign up?
Yes. Frequent flyers points programs are easy to sign up for. Most airlines have a specific sign-up guide. You can sign up online and then later fill in the frequent flyer number after purchasing tickets to learn more about the reward points. You may or may not earn enough rewards to redeem, but you won’t get better upfront ticket prices unless you’re a member.
Should you put any effort into the program?
This depends on your loyalty to an airline or two or three more airlines. Your answer narrows down to your locality and how often you fly. Your locality will help you select the best airline, but according to experts, it’s best to disregard the frequent flyer program if you can access multiple airlines in your locality.
How will you benefit from the program?
The main reasons for joining a frequent flyer program are to get;
Free flights
Seat upgrades
Elite status
When considering what you tend to benefit from the program, think about your goals. A typical decision that most members consider is whether to use it on more trips or luxury rides. For example, flying in a business class will cost you many points, which may equal two economy class trips.
How to earn frequent flyer points
The best way to earn points is through flights. Though these points are called miles, you get rewards depending on how much you spend, not the distance covered. For instance, you can earn 5 miles on every dollar spent. Meaning a round trip of $500 flight makes you 2,500 miles.
Other ways to earn from frequent flyers points program include;
Shopping with your travel credit card
Buying, pooling, or transferring airline miles
Dining programs and shopping portals
Book with airline’s rental cars partners and hotels
Gain elite status
How to redeem and use frequent flyer miles
Generally, you get more redemption alternatives for credit card miles than the miles earned through an airline’s specific frequent flyers points program. You can redeem credit card miles for cash back and gift cards, while frequent flyer miles may be limited to only travel redemption such as booking airfare. Always check the specific redemption guide for your chosen program. Then, compare the redemption choices to be sure you’re getting the best deal.
The bottom Line
You can earn frequent flyer miles on purchases you’re always making by signing up for the loyalty program with your favorite airline. Airline loyalty programs differ so much in terms of earning and redeeming miles. Generally, whether the rewards point program is worth it depends on your time and efforts of how loyal you can be to an airline to get more out of it.
