Loyalty as a service continued...

The loyalty program can be viewed as a service to the firm and this enables organizations to gain competitive advantage because the loyalty program will grow to be more robust, more creative, and more intuitive. Cloud services provide infinite amount of flexibility and this gives the businesses the capability to be more creative by testing different types of campaigns that appeal to its customers. Further, with the popularity of the program and growth, the firm can extend the capacity of its package without much effort. It also has the capability to connect to businesses’ backend systems and deliver real time campaigns. Real time campaign creation facilitates companies to identify a sudden change in consumer demand and modify its loyalty program to address such changes.

For example Virgin America provides just one example of how Cloud services can be used to create competitive differentiation through their frequent flyer program. Its frequent-flyer population of 1.8 million is the industry’s fastest growing at over 40 percent a year and they are also the most engaged.