"When it was time for us to revise our loyalty strategy, we counted on the experts from ICLP. The results were extraordinary, our active membership increased by 15% and the income generated from our partners increased by 17% in one year. We will certainly utilise ICLP services in the future."
Dr Abdulaziz Khayat, General Manager, Alfursan Saudi Airlines
Saudi Arabian Airlines is the second largest airline in the Middle East. It has an expanding international network and an unparalleled domestic network. Established over 30 years ago, it was the first to introduce a frequent flyer programme (FFP) in the Middle East with the support from ICLP. ICLP was instrumental in setting up their FFP 'Alfursan' and has been their strategic loyalty marketing partner since 1995.
Saudi Arabian Airlines needed a revised loyalty strategy to prevent the loss of members to regional competitors, and ensure that new FFP members were active within the first six months of joining the programme.
- ICLP identified through a comprehensive data audit that many members had lapsed over the years. This was partly due to them not being contactable through email and missing out on critical programme communications.
- Insight from member surveys and market research showed that a significant number of new members were indirectly enrolled into the Alfursan programme through travel agents in Saudi Arabia, rather than enrolling themselves. This was a key reason behind low overall activity rates as the member was not aware they were part of the programme.
- Extensive data analysis and segmentation aided the accurate targeting of programme members and resulted in greater member engagement and response rates.
- ICLP's expertise in loyalty programme management was fundamental to the success of this new strategy and our role has evolved with Saudi Arabian Airlines over time to deliver programme consultation, database management, communication management and partnership development.
- In order to increase penetration and drive member activation, ICLP developed a three-step strategy. This involved a substantial on-going database enhancement project aimed at increasing data accuracy and relevance, while paving the way for a more conclusive data segmentation and analytics strategy.
- Identified lapsed and new-active member segments which had a high propensity to fly Saudi Arabia Airlines and/ or transact with its FFP partners.
- Member segments, established through various data analytics, were targeted through an on-going and highly focused communication campaign which included attractive 'First Flight bonus Miles' for new members and 'Back-on-board Bonus Miles' for lapsed members. This was supplemented with attractive and relevant offers from partners.
- An overall 14.8% increase in active members within one year of starting the campaigns.
- The incremental revenue generated from targeted members over the first 12 month period since the launch of the new initiative far exceeded client expectation and resulted in a substantial increase in the share of FFP revenue contributed to the airline.
- ICLP conducted a comprehensive benchmarking study with regional and international FFPs which led to a revamp of the programme structure (Earn and Burn) aimed at enhancing the value proposition to Alfursan members and making it more competitive.
- ICLP has been appointed to manage an annual member survey to benchmark member trends and identify programme enhancements based on member feedback.