#426: Virgin's Velocity - the loyalty program from Virgin Australia - Rewarding Customer Loyalty Super Fast!
Aug 30, 2023
auto_awesome
Virgin Australia's loyalty program, Velocity, focuses on rewarding customer loyalty quickly. Nick Rohrlach, CEO, shares their latest campaigns that drive engagement and earn publicity. The podcast discusses the program's challenges during the pandemic and its recovery process, including the decision made by Bain Capital to buy the business. The value of loyalty marketing, non-airline redemption options, and the importance of alternative ways to maintain status are also discussed.
Virgin Australia's loyalty program, Velocity, focuses on customer loyalty and rewards Australian customers with innovative campaigns that drive intense engagement and excitement among members.
Personalization and immediate rewards are key to driving engagement and behavior change in loyalty programs, as demonstrated by Velocity's successful one-point rewards store and middle seat lottery campaigns.
Deep dives
Velocity: Transforming the Loyalty Business of Virgin Australia
Virgin Australia's loyalty program, Velocity, has undergone a dramatic transformation in recent years, focusing on customer loyalty and rewarding Australian customers. The program's innovative campaigns, such as the one-point rewards store and the middle seat lottery, have generated intense engagement and excitement among members, leading to a surge in new sign-ups. The program's mission is to provide value and recognition to its core customers, who are small business customers, price-conscious corporate customers, and premium leisure customers. Velocity's strong partnership ecosystem, including airlines, supermarkets, fuel stations, and financial services, offers members a wide range of earning and redemption opportunities. Future plans include launching partnerships with luxury escapes and ANA, as well as exploring options for tiering and enhanced recognition for members.
The Power of Personalization in Loyalty: Insights from Velocity
Nick Rorlack, CEO of Velocity, emphasizes the importance of personalization in loyalty programs, drawing inspiration from YouTube and Instagram's algorithms. The ability to customize and personalize the member experience is a key focus for Velocity, aiming to know more about their members than they know about themselves. By tailoring the experience and delivering value quickly, Velocity aims to reinforce the message that loyalty is easily attainable and rewarding. The recent success of their one-point rewards store and middle seat lottery campaigns demonstrates the value of personalization and immediate rewards in driving engagement and behavior change.
The Rebirth of Virgin Australia: From Phoenix to Success
Virgin Australia's journey has been one of resilience and transformation. After facing financial struggles and going into administration due to the impact of COVID-19, the airline was acquired by Bain Capital, sparking a rebranding and repositioning effort. The focus was on delivering a wonderful travel experience, with value and recognition at the core. The relaunched airline, along with the velocity loyalty program, aims to reward and recognize customers for their loyalty. The success of their recent campaigns, such as the one-point rewards store and middle seat lottery, highlights the brand's ability to engage customers and restore their trust, ultimately leading to a surge in membership sign-ups.
Exponential Growth and Future Prospects of Velocity
Velocity has experienced exponential growth, reaching a milestone of 11.5 million members. The program's broad coalition of partners, including airlines, supermarkets, financial services, and retail, offers members a wide range of earning and redemption options. The focus on delivering value quickly and offering compelling rewards has been instrumental in attracting new members and re-engaging existing ones. Future plans for Velocity include expanding the partner ecosystem, introducing luxury escapes and ANA as new partners, and enhancing the member experience through innovative products and additional recognition options. The program also aims to strengthen its position as a leading airline loyalty program while exploring opportunities for tiering and status recognition.
As one of the world’s most famous challenger brands, Virgin enjoys a global portfolio of inspiring businesses that are dedicated to delighting customers around the world, and Virgin Australia's Velocity programme does exactly that!
Our guest is Nick Rohrlach, CEO of Velocity, who shares with us the dramatic transformation of both the airline and its loyalty business in recent years.
Customer loyalty is at the heart of their propositions, with a laser focus on proving to Australian customers that they will be rewarded for their loyalty super fast.
Nick shares their latest campaigns, which are earning Velocity a reputation for bringing back some fun, even at a time of intense economic pressure for consumers.
These campaigns are proving to be incredibly powerful tools that drive impressive levels of engagement for the programme, as well as earning welcome publicity for the airline itself – truly remarkable in such a mature and competitive market.
Listen to enjoy my conversation with Nick Rohrlach, CEO of Velocity from Virgin Australia.
This episode is sponsored by ValueDynamx (Part of Collinson Group)
