The loyalty sector is experiencing significant growth, with businesses in various industries turning to loyalty programs to attract and retain customers. Loyalty programs have evolved into complex ecosystems that can drive profitability and sales, leading to what some are calling the “golden age of loyalty.” Consolidating multiple loyalty programs into a unified currency has become increasingly important to simplify the process for consumers and enhance their overall experience. IAG Loyalty, the company behind Avios, conducted surveys to better understand the importance of currency consolidation from both consumer and business perspectives.
Consumers are increasingly overwhelmed by the number of loyalty programs they belong to, with many struggling to keep track of their memberships. The surveys conducted by IAG Loyalty revealed that a majority of consumers prefer the idea of consolidated loyalty programs, as it offers greater accessibility and ease of use. Younger generations, in particular, are seeking simplicity and flexibility when it comes to loyalty programs. Consumers are also looking for more flexibility in both earning and redeeming loyalty points, making a consolidated currency an attractive option.
While consumers are clearly in favor of consolidated loyalty programs, there seems to be a perception gap among business leaders. Many business leaders underestimate consumer demand for unified currencies, potentially missing out on opportunities to enhance customer satisfaction and engagement. However, there is a recognition among business leaders that loyalty programs will need to evolve to meet changing consumer needs. By linking with a unified currency, businesses can attract more customers, enhance marketing effectiveness, and increase customer engagement.
Consolidating loyalty currency offers benefits to both consumers and businesses. For consumers, it provides the convenience of earning and redeeming points across various brands, products, and services, without diluting individual brand identities. For partners, it enhances customer engagement and allows them to reach new audiences while maintaining control of their program. By tapping into a consolidated currency like Avios, businesses can attract new audiences, drive growth, and retain existing members in a cost-effective manner.
IAG Loyalty’s Avios currency has already seen success with partners like Qatar Airways and Finnair, leading to increased customer numbers and higher points collected and redeemed. By offering partners autonomy in designing their program benefits and reward structures, while leveraging the broad reach and flexibility of a consolidated currency, IAG Loyalty is enabling brands to maintain their identity while enhancing customer engagement and loyalty. The Avios currency is also being expanded into everyday transactions, offering consumers the ability to convert everyday spending into travel rewards.
Looking to the future, IAG Loyalty is committed to expanding the reach of the Avios currency across more airlines and travel verticals. By fostering cross-category collaboration and remaining adaptable to changing consumer preferences, the loyalty industry can continue to thrive and deliver meaningful benefits to customers and partners. As the loyalty sector evolves, cooperation and creating value for customers will be key to staying competitive. By focusing on customer feedback and demonstrating the benefits of loyalty programs for both customers and businesses, loyalty programs like those offered by IAG Loyalty can continue to drive value for all stakeholders in the loyalty industry.
