Frequent flyer programs – Beneficial for companies and employees
Do you, your employees or your colleagues fly frequently on business trips? Then you might have heard about the numerous frequent flyer programs offered by various airlines. But have you heard of PartnerPlusBenefit, Lufthansa’s frequent flyer program for companies? With PartnerPlusBenefit, employees earn BenefitPoints for the company as well as additional miles for their personal Miles & More accounts.
Get to know PartnerPlusBenefit. Lufthansa's extensive corporate bonus program offers small and medium-sized businesses the unique opportunity to save on travel costs for corporate trips while motivating employees with rewards such as BenefitFlights, in-flight upgrades, retail vouchers and lounge access.
Background information on this topic
Customer loyalty – A definition
Customer loyalty programs include all the measures a company takes to intensify and build a lasting relationship between suppliers and buyers. Here, the efforts of the company are not focused on attracting new customers, but on its already existing customer base. The purpose of customer loyalty is the achievement of repeat business by building commitment and brand loyalty.
Customer loyalty success factor
Many companies consider the acquisition of new customers a key factor for economic success, even though the increased intensity of competition in many industries is leading to rising costs in acquiring them. In fact, studies show that, from a statistical perspective, acquiring a new customer is seven times more expensive than efforts to keep an existing customer and motivate this customer to purchase from the company again.
Therefore, investments in systematic customer loyalty management should be a top priority. In addition, the full potential of a customer, such as high and stable profits and a good relationship, can only be fully tapped in time.
Additionally, satisfied and loyal customers recommend the supplier to others – making this the cheapest form of marketing to gain new customers.
Various tools for gaining customer loyalty
Customer loyalty programs have become ubiquitous and are offered across all industries by almost every major company.
In particular, individual retail or service companies use these programs most frequently.
The most commonly observed instruments for customer loyalty are:
- Bonus programs
Customers receive a bonus, by earning Miles or BenefitPoints, for example.
- Discount card
Customers are granted a direct discount on their purchase by presenting a corresponding card.
- Customer cards without regular incentives
The holder of such a customer card receives discounts or premiums only sporadically.
- Points-related promotions
Customers receive adhesive dots for purchases over a certain value, which can be exchanged for a reward at a later date.
The customer receives a bonus or a discount by presenting a coupon.
When choosing the right customer loyalty program, many factors must be considered. Here, the industry, the business model, the positioning, the operational and technical capabilities and the brand itself all play a key role.
Frequent flyer programs – a good example of customer loyalty
Almost every airline currently offers a frequent flyer program. Here, frequent flyers benefit from the frequent use of the same airline through the receipt of flight and product awards and benefits related to their status.
Due to agreements between airlines or airline alliances, the use of other airlines is often recognized in a frequent flyer program, making the program even more attractive and inclusive. After all, it offers more options for earning more points.
Many loyalty programs also work with other companies, such as car rentals or hotel chains. This means that the use of their services is also recognized within the frequent flyer program.
Lufthansa frequent flyer program
Lufthansa offers two large, free frequent flyer programmes:
- Miles & More: The Lufthansa miles program for individuals
- PartnerPlusBenefit: The Lufthansa corporate bonus program for small and medium-sized enterprises