In the accompanying blog I argued that Air NZ has just made changes to its trans-Tasman ticket pricing that have seriously undermined its customer loyalty program. I made the distinction between ‘reward’ and ‘loyalty’ programs and said that rewarding customers is always going to be difficult to sustain but that loyalty was easier.
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By my reckoning changes just made to Air NZ’s trans-Tasman ticket pricing have disemboweled its loyalty program. Untangling the logic behind what they have done helps clarify the differences between loyalty and reward and how (infuriatingly) branded customer service trumps them both.