CONSULTING SERVICES

frequent flyer program consulting

On Point Loyalty Consulting
Providing a variety of consulting services across strategy, members, marketing, partners, rewards and finance disciplines
On Point Loyalty Consulting has a unique approach to client engagements.  

Interdisciplinary Teams
On Point Loyalty Consulting builds project teams with executives from a variety of backgrounds including operators, technologists, strategists, financiers, statisticians and marketers, but all with a deep knowledge of airline loyalty.

Flexible Solutions
On Point Loyalty Consulting creates custom solutions based on the specific objectives of each client. The boutique attention to each client is designed to deliver long-term, breakthough strategies and rapid reaction to business environments.

Lean Management
On Point Loyalty Consulting applies lean design principles to engagements leveraging rapid cycling, experimentation and innovative technology platforms to generate greater transparency, facilitate coordination and shorten time spent in feedback loops.
See our case studies

STRATEGIC CONSULTING

  1. Program Design
    Creation of all program policies, currency, branding, partnerships, rewards and member services. Modeling of the economic flows to ensure commercial success and sustainability.
  2. Due Diligence
    In-depth study and analysis of program health, strategy and growth prospects by individuals who have run airline loyalty programs and know where to look for potential skeletons.
  3. Business Plan Development
    Creation of business plans for airline loyalty programs or cobranded credit cards by combining market assessment with internal capabilities evaluation.
  4. Innovation Architecturing
    Airline loyalty operates at the intersection of virtual currency, banking, airline, data analytics, marketing and technology. Development of new ideas will flourish in this frontier environment.
  5. Organizational Design
    Zero-base organizational designing to develop optimized corporate structures. Talent assessment and sourcing to create high performance organizations.
  6. Growth Strategy
    Market mapping of potential growth opportunities through customer research, industry benchmarking and innovation workshops.
  7. Program Diagnostic
    Comparison of key program indicators relative to industry benchmarks to determine overall health, strengths and weaknesses of the loyalty program.
  8. Monetization Evaluation
    Evaluation of the monetization potential of the airline loyalty program. Analysis of pros and cons of potential monetization from commercial and financial perspective.
  9. Competitive Analysis
    In-depth comparison of airline loyalty program relative to programs of credit card issuers, coalition loyalty and other airlines to determine relative strengths and areas of opportunity.

MEMBERS AND MARKETING CONSULTING

  1. CRM
    Comprehensive design of customer relationship management operations, systems, tactics and strategies to enhance and harness the value of program database.
  2. Member Direct Sales
    Creation and improvement of member direct sales techniques including the sale of program currency to membership or other ancillary products and services.
  3. Data Analytics
    Build entire data analytics strategy utilizing information from across the airline as well as 3rd party sources. Technology architecture, marketing capabilities and human resources.
  4. Brand Positioning
    Brand development specific to airline loyalty to identify and determine core brand personality, value proposition and visual identity expression in conjunction with partners and members.
  5. Tier Structure Optimization
    Determination of optimal number of elite frequent flyer tiers and the benefits associated with each. Economic modeling of return on investment for elite benefits.
  6. Breakage Impact Evaluation
    Actuarial and econometric studies of the impact to breakage estimates based on various potential program design change scenarios.
  7. Member Segmentation
    Classification of all members in program database to determine size, characteristics and profitability of each discrete segment. Development of action plans for priority groups.
  8. Campaign Management
    Management, coordination and optimization of direct marketing through email, direct mail and text messaging. Creation of experimental design procedures.

PARTNERS CONSULTING

  1. Pricing Strategy
    Analysis of optimal price points for selling program currency to partners based on product, volume and redemption behavior. Pricing guidelines for new partners and promotions.
  2. Partnership Acquisition
    Development of strategy to build loyalty program coalitions and value proposition structuring to appeal to target coalition partners.
  3. Cobrand Negotiation
    Management of entire cobrand negotiation process from RFP development to proposal analysis to contract negotiation. Also represent issuers dealing with airlines.
  4. Partnership Development
    Assistance with acquiring new partnerships for airlines seeking banks or other partners and credit card issuers seeking airlines.
  5. Network/Franchise Negotiation
    Management of entire network negotiation process from RFP development to proposal analysis to contract negotiation. Also represent networks dealing with airlines.
  6. Intercompany Agreements
    Development of contractual arrangements between the loyalty program and airline to establish arms-length terms and better understand program economics.

REWARDS CONSULTING

  1. Redemption Product Optimization
    Creation of redemption product set including variety of air redemption alternatives and non-air redemption options to maximize customer satisfaction and profitability.
  2. Redemption Cost Analysis
    Identification of real unit costs through sophisticated marginal cost and displacement cost analysis and recommended product/grid changes based on analysis.
  3. Non-Air Rewards Strategy
    Construction of portfolio of non-air rewards to match the airline program and market. Determination of optimal unit cost and promotional plans.

FINANCE CONSULTING

  1. Accounting Advisory
    Assessment of appropriate accounting treatments including broad revenue recognition principles under IFRS 15. Liaising with auditors as needed.
  2. Financial Reporting Creation
    Building of financial reporting packages, creation of key reporting metrics and systematization through technology and Balanced Score Card methodologies.
  3. Budgeting and Forecasting
    Construction of financial models built from the bottom up with key program drivers to accurately project future business performance. Scenario planning and Monte Carlo simulation.
  4. Valuation
    Assessment of the enterprise value of loyalty program business. Identification of goodwill associated with intangible assets and revenue linked to marketing components.
  5. Mergers and Acquisitions
    Advisory on potential merger and acquisition opportunities and corporate development frameworks.
  6. Breakage Estimation
    Actuarial and econometric modeling to determine activity and population breakage estimates.

Contact Us
Contact information
If you have any questions, please do not hesitate to send us a message. We will reply within 24 hours.

Locations

New York|Los Angeles|Montreal|Sao Paulo| Sydney|Singapore

Name
Phone
Message
Email
Submit
Connect on LinkedIn