Loyalty Programs from firms like Caesars and United Are More than just intangibles. Our Executive Vice President, Strategy and Executive Creative Director Sean Claessen comments on the importance of loyalty program data and program valuation.
Marketers are told all the time that their customer data is valuable, but when it comes to some loyalty programs, that value is measured in more than marketing metrics. It's measured in dollars.
Take United Airlines. Its MileagePlus rewards program is so valuable other companies including Chase Bank pony up hundreds of millions of dollars to pre-purchase miles to offer as incentives to their own customers.
Creditors of recently bankrupt Caesars Entertainment Corp have valued the firm's coveted TotalRewards loyalty program at $1 billion -- higher than the price tag placed on any of its physical casino properties.
"I love that a marketing construct would add this kind of valuation to your brand," said Sean Claessen, executive VP, strategy and executive creative director at Bond Brand Loyalty. "The job of marketing is to produce value."Read More