Understand the changes in air miles programs
The proposal by the Chamber of Deputies to change the rules for air miles programs is likely to bring about changes in the loyalty market. The measure, which aims to limit the expiration of miles and increase transparency, among other measures, could be a watershed for this sector, especially for coalition programs.
Why is change inevitable?
- Market saturation: Competition between coalition programs makes it difficult to differentiate brands and requires innovation in the business model.
- Regulatory wave: The House proposal is not a one-off adjustment, but a significant change that could make coalition programs less attractive to consumers and more challenging for companies.
- International examples: Limiting the expiration of miles (the European Union implemented measures in 2019 that regulate, among other things, the expiration of points) and the points exchange system (Canada has a system that allows points to be exchanged between different loyalty programs, increasing flexibility and value for consumers).
- Greater regulatory transparency: Australia has adopted strict regulations that guarantee a fairer relationship between companies and consumers in loyalty programs.
- Value challenge: The diversity of companies participating in a coalition program often dilutes the value perceived by consumers.
Given the changes in the scenario, loyalty programs are emerging as a promising alternative.
Advantages of in-house programs
- Greater control and flexibility: They allow you to personalize the customer experience precisely, meeting their needs and expectations.
- Direct customer relations: Opening doors to a closer and longer-lasting relationship with customers, building loyalty and increasing brand value.
- Higher ROI: Studies show that in-house loyalty programs offer a significantly higher return on investment (ROI) than coalition programs.
Impact for companies and consumers
- Companies: Adapting to regulatory changes can be challenging, but it also represents an opportunity to innovate, improve and create a more efficient and profitable program of your own.
- Consumers: The change could bring more certainty and understanding about the rules of loyalty programs, transforming the customer experience and providing more relevant and tangible benefits.
Conclusion
Changes in mileage programs seem to be inevitable and represent an opportunity for companies to get closer to their consumers and adapt to a new scenario. Their own loyalty programs appear to be a win-win solution, providing greater control, flexibility, value and return on investment.
