Air Canada’s decision to relaunch its Aeroplan program has turned heads in the aviation industry. The journey to reclaim control over its loyalty program illustrates both strategic foresight and operational challenges.
As global travel faces unprecedented disruptions, the importance of a well-managed loyalty scheme cannot be understated. With Aeroplan’s relaunch, Air Canada aims to redefine customer engagement and satisfaction amid a transforming landscape.
When Air Canada initially outsourced its frequent flyer program to Aimia, it encountered surprising restrictions. Mark Nasr, who led the loyalty arm, faced barriers accessing critical financial partnerships. Nasr expressed frustration at the level of control Aimia exerted, which included managing credit card partnerships crucial for revenue. This separation led to a fragmented customer experience, where passengers often didn’t know the correct point of contact for their queries.
Air Canada’s announcement to establish a new loyalty program from scratch, post-Aimia, was met with challenges. The airline risked losing customer trust, valuable data, and established loyalty points. After extensive negotiations, Air Canada managed to buy back the program, ensuring continuity for its passengers. The new Aeroplan, set for launch, promises features that enhance user experience, supported by seamless technology integration.
Nasr believes that solving these technical issues creates what he describes as ‘magic,’ where systems work harmoniously, offering more flexibility and options to customers. It’s this unremarkable reliability that sets a benchmark for customer expectations in an ever-evolving travel industry.
While recognising the cost implications of such redemptions, Nasr asserts that maintaining ‘sweet spots’ within the program can foster customer loyalty. Consumers seeking value through strategic point usage will find opportunities to maximise their benefits, promoting engagement and brand affinity.
Nasr emphasises that while the dynamics of loyalty may shift, the intrinsic value and enjoyment derived from these programs remain constant. He cites industry veterans who view loyalty schemes as one of the most successful marketing innovations, highlighting their global appeal and enduring relevance. The loyalty landscape may evolve, but its core offerings continue to captivate consumers.
As the new Aeroplan prepares to launch, the airline’s ability to adapt amid industry challenges serves as a beacon of resilience. Air Canada’s journey reflects a broader trend of airlines reevaluating their loyalty strategies to meet modern traveller expectations.
Air Canada’s Aeroplan relaunch signifies more than just a business decision; it marks a pivotal move in enhancing customer relationships. The airline company’s efforts underscore its ability to adapt and thrive amidst industry challenges.
This strategic initiative not only promises a refined travel experience for its customers but also sets a precedent for others in the aviation field.