Historically there have been 2 leading loyalty models – Frequent flyer program (FFP), aimed at people who use airline services frequently and Coalition Loyalty model, aimed at everyday consumers / infrequent travelers. FFP offers the best value proposition globally for frequent / corporate travelers, and Coalition Loyalty model offers most for everyday consumers / infrequent travelers.
PINS created a third loyalty model which was coined as the Shopper Flyer Program model, or SFP in short.
This model is believed to represent a very strong business opportunity for especially mid-size airlines and low-cost carriers to serve infrequent customers based on best practices from the Coalition Loyalty models, while also maintaining certain core elements of the FFP offering. Key differentiators versus the existing FFP model (which is limiting airline programs in getting much larger revenues and loyalty penetration in key categories such as grocery) are:
1. shared database access, based on agreed database principles
2. a strong and partner independent loyalty brand (most FFPs brands are uniquely linked to the airline’s brand in the consumer’s mind and thereby limiting the retailer’s willingness to display the brand on product level (POP branding) in their stores which is a requirement to get >60% revenue penetration of store sales via the loyalty card
3. storing data on product level (SKU level) in the database as retailers want to run time-bound loyalty promotions on product level and don’t want to have to offer double points for example on all their products during a certain period
PINS was launched in May 2014 and since then has grown into a daily shopping and travel companion for more than two million members in Northern Europe. Members can collect PINS for a wide variety of everyday purchases and activities with more than 700 local, global and online brands represented. An extensive and redesigned Online Rewards Shop launched in 2015 offers to spend PINS on various coveted rewards from both local and global brands. These milestones have earned the program numerous industry awards and international acclaim, while the PINS brand was also the most searched for brand in Google in 2014 in Finland. The PINS program is poised to roll out in many new markets in 2017 across Europe and Asia.Find out more