American Airlines was one of the first airlines to implement their own program.
And they now generate the most revenue out of any airline.
A significant portion of flyers choose who to fly with based on extra rewards like 'points'.
Despite its AAdvantage miles being notoriously difficult to redeem, the promise of rewards drives more customers to choose American Airlines.
According to one study, their points are worth 1.5 cents per mile. (to be honest, I'm not entirely sure what this means - I'm Australian. But apparently, this is a kind of good deal?)
But everyone neglects the fact that they're only worth that if you win the lottery of finding a points seat on the flight you want.
A significant portion of flyers choose who to fly with based on extra rewards like 'points'.
Despite its AAdvantage miles being notoriously difficult to redeem, the promise of rewards drives more customers to choose American Airlines.
According to one study, their points are worth 1.5 cents per mile. (to be honest, I'm not entirely sure what this means - I'm Australian. But apparently, this is a kind of good deal?)
But everyone neglects the fact that they're only worth that if you win the lottery of finding a points seat on the flight you want.
Encourage customer loyalty with rewards.
The rewards must be valuable.
BUT you make more money when the perceived value of what you give out is higher than your actual value.
Generally, people overestimate the true value of a low-probability bet. This is also one reason why gambling is so profitable. This is the dangerous side of consumerism and capitalism.
PS. don't miss the chance to get a weekly insight in your email (it's free).
Don't miss my next conversion examples! I share a new one every week.
Once a month I share a new conversion example. It’s a cool newsletter. I promise.
