Loyalty Program Analytics

Air India's Maharaja Club just had one of the most significant loyalty program overhauls in Indian aviation history. Here's why it matters 👇 Most frequent flyer programs follow a predictable pattern - launch with generous redemption rates, build a loyal base, then quietly devalue points over time. Air India just broke that pattern. The newly revamped Maharaja Club has slashed point requirements across both domestic and international routes by up to 64%. This isn't a minor tweak. It's a strategic repositioning. What changed - and why it's significant: 1. Redemption rates are dramatically lower Domestic routes like Goa- Hyderabad dropped from 7,000 to just 2,500 points. Delhi -Jeddah fell from 26,000 to 12,000. Delhi-San Francisco went from 77,000 to 40,000. For context, these reductions range from 34% to 64%. In the loyalty program world, that's extraordinary. 2. Cancellation flexibility is now genuinely useful Points are refunded with zero charges - up to 2 hours before departure for Platinum members, 7 days for Gold, and 30 days for Silver. This removes one of the biggest psychological barriers to redeeming award tickets: the fear of losing points if plans change. 3. Tier progression is more accessible Silver status now requires just 20 flights (down from 30). Gold drops from 60 to 45 flights. More members will now qualify for meaningful perks, which deepens program engagement. 4. Award seat availability improved Lowest fare award seats are now bookable up to 30 days before departure, versus 90 days previously. This is a major win for travelers who don't plan months in advance. The credit card ecosystem matters here too The Maharaja Club's value is amplified significantly by credit card transfer partners. The Axis Olympus card offers a 1:4 transfer ratio — among the best in the Indian market. ICICI Emeralde, SBI Miles Elite, and HSBC TravelOne offer 1:1 ratios. HDFC Infinia and Diners Black come in at 2:1. For anyone optimizing travel spend through credit cards, this revaluation materially changes the math. The bigger picture Since the Tata Group acquired Air India, the airline has been investing heavily in fleet modernization, service quality, and now, loyalty program value. This revaluation signals a clear intent — Air India wants to compete seriously for the frequent flyer's wallet. The risk, of course, is sustainability. Generous redemption rates are expensive to maintain. But for now? If you fly Air India — - or are considering it - this is the best time in years to engage with Maharaja Club. The question isn't whether to redeem. It's how fast you can accumulate. What's your take - is Air India's loyalty overhaul enough to win you over from IndiGo or Vistara's successor programs? Story by Gopal Gidwani. If you'd like guidance on credit cards, you can book a call with us. Reply CC to this post!

If you're tracking Repeat Purchase Rate, you're already late. Most brands treat RPR as a north star for retention. But it’s a lagging indicator — it tells you what happened, not what’s about to happen. By the time your RPR drops, churn has already occurred. You’re in recovery mode, not optimization mode. So what should you track before churn shows up? Here are three leading indicators that are giving us far more predictive insight across the brands we’re working with: 1. Time-to-Second-Purchase (T2P) Your best early signal of habit formation. • T2P < 21 days → High retention probability • T2P > 45 days → Intervention window: • Loyalty trigger • Reminder • Friction removal Great retention programs are built around this clock — not arbitrary cadences. 2. Post-Purchase Engagement Rate The % of new customers who interact with any loyalty or brand touchpoint in the first 7 days: • Visited rewards dashboard • Clicked a referral link • Engaged with brand content or email • Redeemed a bonus or offer This shows whether customers are mentally subscribed to your brand — not just transactionally. 3. SKU-Driven Retention Mapping Not all products create loyalty. Some create habits. Others just create one-time spikes. We’re seeing brands track retention likelihood based on the first purchase SKU. Patterns include: • Product A → 2.5x higher repeat rate • Product B → 80% never return Use this to optimize: • Ad targeting • Onboarding flows • Post-purchase journeys RPR is still worth tracking. But if it’s the only thing you’re watching, you’re flying blind. Leading indicators help you act before the drop-off. So what signals are you watching?

They burned the points. They took the reward.... But they never came back. We love bragging about high redemption rates. "70% burn!" "Record redemptions this quarter!" But here’s the uncomfortable question: 𝗔𝗿𝗲 𝘆𝗼𝘂 𝗰𝗲𝗹𝗲𝗯𝗿𝗮𝘁𝗶𝗻𝗴 𝘄𝗵𝗮𝘁 𝘀𝗵𝗼𝘂𝗹𝗱 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗰𝗼𝗻𝗰𝗲𝗿𝗻 𝘆𝗼𝘂? Because high burn rates aren’t always a win. Sometimes, they’re just a symptom. A symptom of: – Weak reward design (𝗡𝗼𝘁𝗵𝗶𝗻𝗴 𝗮𝘀𝗽𝗶𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗼𝗿 𝗿𝗲𝗹𝗲𝘃𝗮𝗻𝘁 𝘁𝗼 𝘀𝗮𝘃𝗲 𝗳𝗼𝗿) – Poor in-brand engagement (𝗬𝗼𝘂’𝗿𝗲 𝗽𝗮𝘆𝗶𝗻𝗴 𝗿𝗲𝗮𝗹 𝗺𝗼𝗻𝗲𝘆 𝘁𝗼 𝗳𝘂𝗻𝗱 𝗼𝗳𝗳-𝗯𝗿𝗮𝗻𝗱 𝗿𝗲𝗱𝗲𝗺𝗽𝘁𝗶𝗼𝗻𝘀) – Or worse, members using up points before they churn (𝗯𝘆𝗲! 𝗯𝘆𝗲!) When burn becomes the KPI, two things happen: You confuse activity with loyalty. You cannibalise value that should have driven incremental behaviour. Not to mention the cost. Points redeemed 𝗼𝘂𝘁𝘀𝗶𝗱𝗲 your ecosystem = 𝗺𝗼𝗻𝗲𝘆 𝗼𝘂𝘁. Points redeemed 𝘄𝗶𝘁𝗵𝗶𝗻 your ecosystem = 𝘂𝗽𝘀𝗲𝗹𝗹 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆. I’ve seen this play out up close and personal, where a power brand in the region proudly quoted rising redemption rates, but behind the scenes, the redemptions are happening off platform, and the real value is leaking out. Burn was high, yes, but loyalty? Not so much. It was a reminder: High burn doesn’t mean high engagement if it’s not driving repeat spend or brand preference. So instead of chasing redemption for its own sake, ask: 👉 Is the reward driving repeat spend? 👉 Is it reinforcing the brand relationship? 👉 Or is it just a clean exit? Because loyalty isn’t about how many points get burned. 𝗜𝘁’𝘀 𝗮𝗯𝗼𝘂𝘁 𝘄𝗵𝗼 𝗰𝗼𝗺𝗲𝘀 𝗯𝗮𝗰𝗸, 𝗮𝗻𝗱 𝘄𝗵𝘆. What do you think of burn as a success metric? Would love to hear your thoughts. #LoyaltyStrategy #CustomerEngagement #CRM #RedemptionDesign #MarketingROI #postno18

✈️ 𝗖𝗮𝘀𝗵𝗯𝗮𝗰𝗸 𝗰𝗿𝗲𝗱𝗶𝘁 𝗰𝗮𝗿𝗱𝘀 𝗮𝗿𝗲 𝗻𝗼 𝗹𝗼𝗻𝗴𝗲𝗿 𝗸𝗶𝗻𝗴. 𝗧𝗿𝗮𝘃𝗲𝗹 𝗿𝗲𝘄𝗮𝗿𝗱𝘀 𝗮𝗿𝗲. Our latest SaveSage study, now covered widely in the media, reveals a clear shift in how Indians are using their credit card rewards beginning 2025: • 32% of all reward redemptions are now for flights & airline miles - overtaking cashback • ₹850 crore worth of rewards redeemed for travel by SaveSage users this year • Users earned up to 15.6% value back on travel bookings • The 30–35 age group emerged as the most financially savvy cohort 𝗪𝗵𝗮𝘁’𝘀 𝗱𝗿𝗶𝘃𝗶𝗻𝗴 𝘁𝗵𝗶𝘀 𝗰𝗵𝗮𝗻𝗴𝗲? Rising travel costs + better awareness = users treating points and miles as a strategic financial asset, not just a nice-to-have perk. At SaveSage, this is exactly what we’re building for — helping Indians unlock real, outsized value from rewards they already earn, and making travel meaningfully more affordable. The future of spending isn’t about discounts. It’s about optimisation. 🚀 𝗣.𝗦. Link to read the detailed findings in the comments.

Three years back, One of my friend faced a drop in repeat purchases in a fast-growing online marketplace. Instead of blindly increasing discounts, the team turned to SQL and data analytics to uncover the real reasons behind customer churn. SQL-Driven Approach 1. Identifying Lapsed Customers SELECT customer_id, COUNT(order_id) AS total_orders, MAX(order_date) AS last_order_date FROM orders GROUP BY customer_id HAVING COUNT(order_id) > 1 AND DATEDIFF(day, MAX(order_date), GETDATE()) > 60; 🔹 Insight: Target customers who haven’t ordered in 60+ days. 2. Discounts vs. Organic Purchases SELECT customer_id, COUNT(CASE WHEN discount_used = 'Yes' THEN 1 END) AS discount_purchases, COUNT(CASE WHEN discount_used = 'No' THEN 1 END) AS organic_purchases FROM orders GROUP BY customer_id; 🔹 Insight: Identify if customers only buy with discounts—these may not be loyal customers. 3. High-Value Customers Who Stopped Ordering SELECT customer_id, SUM(order_value) AS total_spent, MAX(order_date) AS last_order_date FROM orders GROUP BY customer_id HAVING total_spent > 500 AND DATEDIFF(day, MAX(order_date), GETDATE()) > 90; 🔹 Insight: Focus retention efforts on high-value customers. Challenges & Solutions Slow Queries? ✅ Added indexes on customer_id & order_date. Who to target? ✅ Used cohort analysis to find optimal re-engagement timing. Retention vs. Profitability? ✅ Ran A/B tests—loyalty perks worked better than heavy discounts. Business Impact ✔ 18% increase in repeat purchases with targeted campaigns. ✔ Optimized loyalty program to reward engagement, not just discounts. ✔ Reduced churn by identifying & acting on key retention signals. 💡 Key Takeaway: SQL isn’t just for reporting—it’s a powerful tool for understanding customer behavior and making smarter business decisions. What data-driven strategies have you used to boost retention? Let’s discuss!

✈️🛒 Earn Anywhere. Redeem Everywhere. When I speak with consumers across APAC and MEA, a common theme keeps emerging: “Why can’t I use my rewards the way I use my money freely, wherever I want?” And they’re right. In a world where payments are borderless and instant, many loyalty programs still operate like gated islands , siloed, restrictive, and frankly, underutilized. But the tide is turning. The rise of open-loop loyalty ecosystems is creating real flexibility: 1. In the UAE, Emirates Skywards lets members spend miles on everyday purchases at Dubai Duty Free. 2. In Singapore, Grab users can convert GrabRewards points to partner miles or vouchers and not just in the Grab app. 3. In South Africa, FNB customers can use eBucks across travel, groceries, fuel, and even flights, great example of frictionless checkout. And behind all of this? Payments as the enabling layer. When loyalty is integrated at the point of payment, everything becomes seamless around earn, burn and recognition. There is no app juggling, no scanning, no drama. 👉🏻According to McKinsey, programs that offer flexible redemptions see +20% engagement uplift and up to 2x increase in customer stickiness. It’s no longer about the points you give , it’s about the freedom they offer. Of course, most CFOs would prefer points stay inside the ecosystem. That’s understandable as it keeps liabilities controlled and spend contained. But here's the thing: limiting redemption doesn’t inspire loyalty. A well-designed program can offer a #lifestyle ecosystem redemption that’s both engaging and cost-efficient , through: 👉🏻Smart burn partners, 👉🏻Dynamic value controls, and 👉🏻Segmented reward strategies. 🎯 So the real question is: Are you building a program to protect margins, or to unlock relationships? Only offering closed-loop redemption limits engagement. Offering choice with the right control , drives both growth and engagement! #Loyalty #Payments #CustomerEngagement #OpenLoyalty #CXStrategy #LoyaltyPrograms #Fintech #Retention #DigitalTransformation #PointsEconomy

Aussies turn to loyalty programs to stretch budgets this festive season. The first Velocity Points Pulse Report from Virgin's Australia Velocity Frequent Flyer reveals: 1. Australians saved an estimated $3.5billion in the past year by redeeming airline loyalty points, with many planning a “cash-free Christmas” as cost-of-living pressures rise. 2. Members hold 783billion unused points worth nearly $2billion, and average savings reached of $400. 3. Retail redemptions are growing, led by Gen Z, as points increasingly support everyday budgets, not just travel. 4. 55% of Australians feel more financially pressured than they did a year ago, and 40% say they are struggling to afford daily necessities. As a result, millions are preparing for a “cash-free Christmas” by relying on their points balances. 5. Velocity Frequent Flyer has also seen a surge in retail redemptions since expanding its in-store partnership with Myer, with products like air fryers, coffee machines, luggage and headphones becoming popular choices. 6. Younger generations are driving this shift even further: 79% of Gen Z plan to use points for shopping 83% expect to redeem them for travel Velocity Frequent Flyer CEO Nick Rohrlach says the findings show a significant change in how Australians use reward programs. “Members aren’t just saving for flights anymore—there’s been a 40% increase in earning through non-air partners, meaning everyday spending is now turning into Christmas presents,” Rohrlach said. “As cost-of-living pressures grow, points are becoming a meaningful part of how many Australians manage their finances.” Velocity encourages members to check their balances and make use of unredeemed rewards, noting that timely redemptions can meaningfully offset seasonal spending. https://lnkd.in/gnFEZujM

💡 𝐑𝐞𝐝𝐞𝐦𝐩𝐭𝐢𝐨𝐧 𝐢𝐬 𝐥𝐨𝐲𝐚𝐥𝐭𝐲’𝐬 𝐦𝐨𝐬𝐭 𝐮𝐧𝐝𝐞𝐫𝐫𝐚𝐭𝐞𝐝 𝐬𝐮𝐩𝐞𝐫𝐩𝐨𝐰𝐞𝐫. 𝐁𝐫𝐞𝐚𝐤𝐚𝐠𝐞? 𝐀 𝐰𝐚𝐫𝐧𝐢𝐧𝐠 𝐬𝐢𝐠𝐧𝐚𝐥. In many loyalty programs, we see a familiar pattern: Plenty of members shop. But far fewer redeem. That 𝐠𝐚𝐩 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐭𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐫𝐞𝐝𝐞𝐦𝐩𝐭𝐢𝐨𝐧 isn’t just a statistic, it’s a missed opportunity. Because rewards aren’t just about value, they’re about 𝐜𝐫𝐞𝐚𝐭𝐢𝐧𝐠 𝐚 𝐦𝐨𝐦𝐞𝐧𝐭 of recognition, motivation, connection. And yet, far too often, the spotlight stays on earning points, not on spending them. Add to that a structural issue we see across industries: 🧨 𝐁𝐫𝐞𝐚𝐤𝐚𝐠𝐞. Often around 25% of points go unused, whether through expiry, inaction, or disengagement. It may look like cost savings on paper, but what does it say about the program’s relevance? If a loyalty program becomes profitable because customers don’t redeem, then it’s time to pause and ask: 𝐀𝐫𝐞 𝐰𝐞 𝐫𝐞𝐚𝐥𝐥𝐲 𝐛𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐥𝐨𝐲𝐚𝐥𝐭𝐲 𝐨𝐫 𝐣𝐮𝐬𝐭 𝐛𝐚𝐧𝐤𝐢𝐧𝐠 𝐨𝐧 𝐢𝐧𝐚𝐜𝐭𝐢𝐯𝐢𝐭𝐲? So here’s the strategic question: 🎯 𝐈𝐬 𝐛𝐫𝐞𝐚𝐤𝐚𝐠𝐞 𝐚 𝐜𝐥𝐞𝐯𝐞𝐫 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐥𝐞𝐯𝐞𝐫 – 𝐨𝐫 𝐚 𝐬𝐢𝐠𝐧 𝐲𝐨𝐮𝐫 𝐩𝐫𝐨𝐠𝐫𝐚𝐦 𝐢𝐬𝐧’𝐭 𝐫𝐞𝐥𝐞𝐯𝐚𝐧𝐭 𝐞𝐧𝐨𝐮𝐠𝐡? Because if your business case needs unredeemed rewards to stay profitable, you may not be building real loyalty, just a temporary margin buffer. Instead of asking “How much breakage is okay?”, maybe we should ask: ✅ 𝐇𝐨𝐰 𝐝𝐨 𝐰𝐞 𝐦𝐚𝐤𝐞 𝐫𝐞𝐝𝐞𝐦𝐩𝐭𝐢𝐨𝐧 𝐢𝐫𝐫𝐞𝐬𝐢𝐬𝐭𝐢𝐛𝐥𝐞? ✅ 𝐇𝐨𝐰 𝐝𝐨 𝐰𝐞 𝐝𝐞𝐬𝐢𝐠𝐧 𝐫𝐞𝐰𝐚𝐫𝐝 𝐞𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞𝐬 𝐭𝐡𝐚𝐭 𝐠𝐞𝐧𝐞𝐫𝐚𝐭𝐞 𝐚𝐧 𝐮𝐩𝐥𝐢𝐟𝐭 𝐢𝐧 𝐫𝐞𝐯𝐞𝐧𝐮𝐞𝐬 𝐚𝐧𝐝 𝐛𝐮𝐢𝐥𝐝 𝐫𝐞𝐥𝐚𝐭𝐢𝐨𝐧𝐬𝐡𝐢𝐩𝐬? What works (and what we’ve seen at scale): ✔️ Frictionless digital redemption ✔️ More options: instant rewards, donations, “points + pay”, low-threshold perks ✔️ Targeted reminders (don’t let value go unnoticed) ✔️ Gamification, challenges, and experiential moments ✔️ Rewarding the small behaviors 🚫 𝐁𝐫𝐞𝐚𝐤𝐚𝐠𝐞 𝐢𝐬 𝐧𝐨𝐭 𝐚 𝐬𝐮𝐜𝐜𝐞𝐬𝐬 𝐦𝐞𝐭𝐫𝐢𝐜. It’s often the symptom of disengagement. ✅ Redemption is where trust becomes action. ✅ Redemption is measurable loyalty. ✅ Redemption is the moment that matters. 𝐖𝐡𝐚𝐭’𝐬 𝐲𝐨𝐮𝐫 𝐭𝐚𝐤𝐞? Is breakage in your program a financial artifact, a design flaw or a strategic blind spot? #LoyaltyMarketing #CRM #CustomerEngagement #Redemption #Breakage #LoyaltyPrograms #CX #ProgramDesign #CustomerLoyalty

Last week, these were the themes that surfaced at The BIG Handshake Loyalty™ North America in Toronto: Dominant Themes 1. The economy is loyalty's most important context right now. Nearly every session touched on cost-of-living pressure as a defining variable. Loyalty programs are no longer competing for discretionary spend. They are competing with rent and groceries. The shift from "earn for a vacation someday" to "help me pay for dinner tonight" was articulated by at least four speakers. This is redefining what redemption means, what value means, and what programme design should prioritize. 2. Simplicity and trust are the same thing. Beth McCoy put it plainly: "Simplicity is an ally of trust. Complexity is the enemy of trust." This was echoed across sessions. Jason Beales on Air Miles' over-engineering. Len Covello on the 10-second window. Josh Meyer on keeping messaging simple at the member level. The consensus is that years of layering features, mechanics, and segmentation have created programmes that brands believe are powerful and members find confusing or exhausting. 3. Partnerships as the loyalty industry's defining strategic move. Partnerships were the most-discussed topic of the day. Four of the main brand sessions (Canadian Tire, WestJet, Skip, Petro-Canada) were partnership-centric. The room heard from practitioners at multiple stages: deal-making, launch, measurement, and long-term management. The unanimous view: this is not a trend; it's a structural shift. Canadians are now habituated to linking accounts and stacking value across programmes. The more interesting question is what comes next: creative, purpose-driven partnerships beyond the expected commercial categories. 4. Real-time and immediate value — the redefinition of "reward". The industry is moving away from accumulation toward immediacy. Len Covello's temporal discounting framework, Jason Beales' data on eVoucher redemption frequency, and Skip's 72-hour, WestJet point-to-order loop all pointed to the same thing. If the value isn't felt now, it's losing impact. The Starbucks data (12 lattes for a free drink in 2016 vs 31 today) served as a cautionary tale the room knew well. 5. Loyalty must speak CEO — or it won't survive. Trinh Tham's LoyaltyX talk and Bond Brand Loyalty's closing session converged on this from opposite directions. Trinh from her lived experience of sitting in both seats; Bond from 16 years of data showing that programs running as departmental exercises don't scale. The language shift — from engagement metrics to growth metrics, from programme KPIs to enterprise KPIs — was framed as urgent, not aspirational. 6. Human connection as the irreducible foundation. Jennifer Bryl's talk, the CAA/Maple session, and Skip's emotional loyalty strategy all circled the same point: data and technology amplify human connection; they cannot replace it. The Indigo ransomware anecdote — customers waiting 30 days for e-commerce to come back online — was the most concrete test of what genuine loyalty looks like. If you want to be part of these conversations next year, don't forget to become a NALA™ - North American Loyalty Association™ member: https://lnkd.in/dZavHDww #LoyaltyMarketing #TBHLoyalty #LoyaltyLeaders #RetailLoyalty #TBHToronto #NALA Hadie Perkas Costas Perkas Philippe Lazzarini

Dispensaries are usually tricked by strong retention numbers and assumes everything is fine. But is it? Many cannabis retailers overestimate their customer loyalty because their data is skewed by a small group of frequent shoppers. These VIPs visit often, spend more, and make retention rates look better than they actually are, while new and casual customers quietly disappear. → Where Most Dispensaries Get It Wrong X They focus on overall repurchase rates instead of breaking them down by customer type. X They assume a high repeat purchase rate means all customers are coming back. X They don’t see how many first-time buyers never return. If 20% of your customers are consistent buyers, they might be carrying your retention numbers while the other 80% churns. That’s a big problem for long-term growth. If 20% of your January customers are New and 80% are returning, you do not have an 80% Retention Rate. → How to Measure Retention the Right Way 1. Segment Retention by Customer Type ▸ Look at first-time customers vs. repeat buyers vs. VIPs. ▸ Are new customers coming back, or is your business relying on a small group of loyal shoppers? 2. Track Churn at Every Visit ▸ What percentage of first-time customers make a second purchase? ▸ How many second-time buyers make it to a third visit? ▸ The biggest retention drop-off often happens after the first or second visit. 3. Identify Where You’re Losing Customers ▸ Are people churning because of pricing, experience, product selection, or lack of engagement? ▸ Look at drop-off points and test win-back emails, personalized recommendations, and better onboarding strategies for new customers. → What to Do Next Pull your retention data and break it down by customer segment. If VIPs are keeping your numbers afloat while new customers churn, you have a growth problem. It might be why your monthly revenue has become stagnant. If you want to truly understand your retention and fix hidden drop-off points, my Team and I specialize in advanced customer lifecycle analytics for dispensaries. Let’s take a deeper look at your numbers.