Northern Lights Air - Galaxy Loyalty Program Analysis

Northern Lights Air (NLA), a small Canadian airline is looking to boost enrollments into their Galaxy Loyalty Program. They’ve experienced steady year-over-year growth so far, but executives feel underwhelmed.

In an effort to improve, they ran a promotion offering 1.5x loyalty card points for bookings made between February and April 2018, with targeted marketing in key areas including Ontario, British Columbia, and Quebec.

The goals were to:

1- Increase enrollments into the program before the peak summer season

2- Increase bookings during the summer for new & existing members

Key Insights and Recommendations -

1. How Did NLA's Galaxy Loyalty Program Campaign Performed? - NLA's campaign succeeded in increasing members count and bookings during campaign and prior to the summer season but did not deliver expected results in targeted regions. This opened the question of target customer profile. Who is their customer? Did the campaign change their preferred demographic?
2. Is NLA's Customer Profile Evolving? - NLA's campaign did not significantly change the Demographics mix of the Galaxy Loyalty Member Program. NLA should consider to 1/ design a new target customer profile, especially for targeted regions or 2/ refine campaign messaging for existing customer profile. Due to this outcome, an analysis of the Galaxy Loyalty Program performance was needed.
3. Is NLA's Galaxy Program Performing? - 2018 Activity KPIs are up but lack of Targets prevents proper business health check. Bookings and CLV trends show signs of volume business. NLA should consider new initiatives to increase the share of wallet as well analyzing competitor's loyalty programs and revisiting routes and schedules against targeted regions and customer profile.