With the launch of a new incentives program, Canadian Airlines has added a business-to-business layer to its consumer-based loyalty points program.
Canadian Plus Incentives allows businesses to buy blocks of travel points from Canadian and offer them to customers or employees through whatever incentive programs they choose. Possible uses are a typical customer loyalty program, an employee performance program or even a fundraising effort. It’s up to the company that buys the points.
‘We had done this on an ad hoc basis for the last couple of years,’ says Rob MacLean, director of marketing programs for the Calgary-based airline.
He says companies outside the travel industry would contact the airline from time to time with the hope of being able to purchase points.
But as loyalty marketing became more popular – and as more companies were excluded from the increasingly popular Air Miles program to allow the coalition program to make good on its promise of category exclusivity – inquiries at Canadian increased, he says. It got to the point where an outside customer – such as Ford of Canada or BMW Canada – would order more points for one promotion than that which a travel-industry partner would use in a full year, says MacLean.
It was at that point that the airline decided the demand was there to launch Canadian Plus Incentives.
For $3,000 and a start-up fee, a company can buy a block of 100,000 points in the form of customized reward vouchers provided by Canadian or through custom pc software which allows a business to transfer points directly into the recipient’s Canadian Plus account.
Not only can the points be redeemed for air travel to over 500 destinations, they can also be applied toward hotels, car rentals and other services.
So far, the program – which is being promoted through a direct mail campaign – has proven successful, says MacLean. ‘To be honest, it’s a good source of new members for us.’ There are over three million Canadian Plus members.
MacLean is quick to say that the 70 existing partners within the Canadian Plus program – all travel-oriented companies – will still play the more important role within the program.
‘We don’t want to rob Peter to pay Paul.’