Thursday, June 09, 2005
Ooh, I got something right!
I have this habit of sending ideas to senior executives in companies where I see a specific marketing opportunity, and over the years, have started collecting and organizing them into a specific folder, tagged with the company name and area of marketing that I was focused on. I browsed through the folder last night, and found a couple of interesting coincidences:
In December of 2001, I wrote this email to Douglas Hacker, then the President of United Airlines Loyalty Services.
Dear Mr. Hacker,
I’m a marketing strategist, but more importantly, have spent more than $162,000 with United Airlines this year. I’ve flown over 180,000 miles with you in the past eleven months, and it looks like I’m well on my way to making the 1K loyalty tier.
The problem, Mr. Hacker, is that you’re going to treat me exactly the same as someone who bought 100 short-segment tickets for $200 each, for a total of $20,000. You’re going to do that because the miles-based system has a major flaw in it. It doesn’t take into account that the same miles can be purchased for very different prices.
Of course, creating a new tier based on more miles is not going to solve that issue. What is going to make me feel special is if you were to treat me and others like me, who fly the miles and spend the bucks a bit differently. Let me explain:
What if you were to mine your Mileage Plus data, and pull out a list of the top 10,000 individual revenue generating customers per year, based on ticket prices paid. Then, what if you created an invitation-only club for these customers that gave them all the benefits of 100K flyer, plus a lot more. Here are some potential benefits:
- Dedicated 800 line, accessible globally. No wait time, period.
- Free upgrades, priority placement.
- Booking privileges on overbooked flights.
- Instant Star Alliance Gold Status.
- Full-fare business purchase on international flights auto-upgraded to first, based on availability.
- Partnerships with other exclusive clubs (like American Express’ Centurion.)
- Heavily subsidized membership into the Red Carpet Club.
- Partner-flying coupons.
You should make it clear to the invitees that this is because they have not only flown a lot with United, but spent a ton of money with you, and that this exclusive membership lasts just one year. You should have special cards for them (I like American Express’ Black Card concept) and a special name for the club, like the Global Services Club or United Elite.I promise you, the numbers will work out—they have to. I can’t imagine I’m the only one who spends as much with you. We’re out there, and you should find us.
Warmly,
--krish menon
At the end of 2002, United Airlines sent private invitations to 25,000 high-revenue customers, inviting them to a new club that they called Global Services. The New York Times published an article about it this year, where they talk about United’s bid to create a black card concept like American Express’ Centurion card.
I never heard back from Mr. Hacker, but it’s nice to know that he had similar thoughts.