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Do customers reward commitment points the exactsame method that they reward conventional cash? And, how do they select to invest one versus the other? The authors of this post present researchstudy findings from their analysis of data describing over 29,000 special commitment points earning and costs deals made throughout 2 current years by 500 airlinecompany commitment program customers. They discovered that points users fell into 4 unique classifications: 1) Money supporters, who choose money over points, even when their worth is similar in terms of getting power; 2) Currency impartialists, who regard points and money interchangeably, valuing them similarly based on their monetary worth; 3) Point players, who actively lookfor out the most useful point redemption chances, deciding to invest points especially when their worth considerably goesbeyond that of money; and 4) Point fans, who worth points more than cash even if their purchase power is the verysame or lower. This post checksout the tactical ramifications of these findings for business that handle commitment programs.
In the years consideringthat The Economist spotlighted the impressive scale of commitment points — especially frequent-flyer miles — as a possible international currency equaling conventional cash in 2005, use hasactually grown quickly in
