Flying Jet Airways: Is it really a privilege

By: Shubhadip

Biswas

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About• Major Indian airline based in Mumbai,

Maharashtra• Market leader in the domestic sector.• Operates over 400 flights daily to 67

destinations worldwide.• Main hub is Chhatrapati Shivaji

International Airport, with secondary hubs at Delhi, Chennai,Ahmedabad, Bengaluru, Pune and Kolkata.

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Seamless service helping in facilitating CRM

• Creating value for its shareholders and the economy

• The aim is to provide a flawless service to the customer, external and internal.

• The employees must know their customers.• Abridging the gap across departments and across

destinations as one strong chain.• Providing services to the customers in a effective

mannerRESULT: The loyalty rate will automatically be

increased

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The loyalty program of Jet Airways--- ‘Jet Privilege’

• 5 Membership tiers—i. Elite tiers--platinum, gold,

silver--specially created for most frequent flyers.

ii. blue plus and blue• The Dynamic Tier Review (DTR)

System – DTR evaluates a member's tier

based on Tier Points and Tier JPMiles.

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The loyalty program of Jet Airways--- ‘Jet Privilege’

Tier Points / Tier JPMiles /Tier Upgrade 6-month 12-month Fast Track Fast Track Upgrade

UpgradeBlue to Blue Plus 5/ 7500 Not ApplicableBlue Plus to Silver 15/ 22500 20/ 30000Silver to Gold 30/ 45000 40/ 60000Gold to Platinum 45/ 67500 60/ 90000

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The loyalty program of Jet Airways--- ‘Jet Privilege’

Facility:Tele check-inWeb check-inKiosk check-inAdditional baggage allowancePriority taggingLounge accessGuaranteed reservations upto 24 hrs prior to departureSpecial partner benefits etc.

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The loyalty program of Southwest Airlines --Rapid

Rewards Program With SWA travelers earn points not miles.

Earning Southwest Airlines Points Fare Type Business Select Anytime Wanna Get Away

Points earned per dollar 12 10 6 Example cost of airfare $250 $200 $100 Example Points Earned 3,000 2,000 600

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Comparison of flat loyalty program—by TESCO and tier

system of JET AIRWAYS• Loyalty program by Tesco--flat one. • This program is a way of learning about how

consumers shop and what they want from their retailer

• Not just changing the one-to-one communication with the customer but changing the physical retail offer.

• It is directed at costs and benefits of an offering and not at the brand itself.

• Therefore, consumers are likely to switch once they perceive alternative offerings as being superior with respect to the cost-benefit ratio.

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Comparison of flat loyalty program—by TESCO and tier

system of JET AIRWAYS Jet Privilege offers 5 membership tiers.Benefit of JET PRIVILEGE : concentrates on a company’s most valuable

customers, may create more value at a lower overall program cost

It is a way to shift a customer into a partner It is a type of Affective loyalty which relates to a

favorable attitude towards a specific brand private label programs is the idea of recognition - "I'm

a Gold customer. Customers wear their recognition badge with honor.

After all, it says that "I am important.“

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Comparison of flat loyalty program—by TESCO and tier

system of JET AIRWAYSLabeling the tiers in status-signaling names

(e.g., silver, gold, platinum) makes consumers more sensitive to program hierarchy.

Basic benefits:• Shift - Acquire new customers • Lift - Increase the spending of existing

customers • Retention - Improve the natural churn rate of

customers • Profit mix - Shift spending to higher margin

products

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Comparison of 3 tier system and 5 tier system

How big of a gap exists in the benefits offered to the different tiers does not matter much to consumers.

Consumers feel good when they are in elite groupconsumers feel more specialAdding a subordinate elite tier enhances their

perceptions of status Inclusion of two more tires will help to

discriminate customers in a better way The intention is to make them feel specially

rewarded for their high level of loyalty

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Aggregate loyalty offering the right solution for Indian

market Indian markets are huge and diverse, It is quite challenging to understand each

customer individually. Indian customers can be broadly classified into two

categories—1. averse to change and is less experimental in

nature2. Choosy and no emotional bondIn this type of scenario open loop-aggregationloyalty scheme is the best choice--“sharing of thecustomer’s wallet”.

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Aggregate loyalty offering the right solution for Indian

marketEncourage the customer to spend where we

want them to spend.complimentary and non-competing partners

who can add value to the customer experience are chosen to participate in the program.

Identify potential customerReduce overall acquisition costTarget is to create, to keep and to leverage

customers

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