Unveiling the New Era of Finnair Plus: A Digital Revolution for Loyalty Rewards
Finnair is a century-old world-class flag carrier of Finland. For over 30 years, the Finnair Plus program has been a mainstay for frequent flyers. But the travel landscape has changed dramatically. Finnair Plus is undergoing a digital revolution to reflect these significant shifts in traveller behaviour and provide members with an unmatched experience in the loyalty scheme. With ”Spend more, Earn more” as its grand incentive in the airline business model, this will boost engagement with old and new customers and provide a robust revenue-driven approach in encouraging more repeat bookings.
A350 carrier
With over 5 years of experience in product management, Jennifer Elizabeth is the mastermind behind the digital strategy and execution of Finnair Plus. In this exclusive Q&A interview, she plunges into revolutionising the user experience with increased transparency on award and tier points upon the adoption of the loyalty currency named as Avios. By ensuring a seamless transition for members, and communicating with them through various touchpoints, catering to different travel styles (from frequent flyers to budget-conscious explorers) and leveraging a robust database to understand their purchasing habits, they can solidify success and stay at the forefront of travel upheaval.
What are some key goals and strategic objectives Finnair aimed to achieve with the Finnair Plus program renewal? And how did the digital implementation of the program renewal tie into these overall goals and strategy?
The Finnair Plus program, established over 30 years ago, has maintained a consistent structure throughout its history. However, the landscape of air travel and related services has evolved significantly. Ticket types have diversified, the selection of travel extras has expanded, and loyalty programs have advanced. Our recent updates aim to reflect these industry changes.
The shift to a spend-based model, for instance, aligns with trends seen in many retail loyalty programs. Adopting Avios as our new loyalty currency is designed to provide our members with greater flexibility, offering a vast array of collect-and-use opportunities through an extensive partner network. Additionally, members can now transfer Avios between Finnair Plus and the British Airways Executive Club, enhancing the benefits and options available.
From a digital perspective, our goal is to provide our members with a seamless and reliable online experience for managing their memberships and benefits. Additionally, we aim to communicate these changes clearly and transparently across all relevant touchpoints, ensuring a smooth transition into the new era of Finnair Plus.
Business Class Cabin
What challenges did you face in ensuring a smooth digital transition for members adopting Avios?
As part of adopting Avios as our loyalty currency, we made several changes that impact our members. Our challenges were to communicate these changes clearly and contextually across various touchpoints, ensuring they are easily understood throughout the user journey and to ensure the online services function smoothly and that we are showing accurate membership information and status.
For instance, we needed to transparently explain the 3:2 ratio conversion of members’ award and tier points upon the adoption of Avios, emphasizing that the value of existing award points remains unchanged. While we communicated this change through multiple channels, it was crucial to prepare contextual notifications at relevant touchpoints to prevent any surprise when members notice a different points balance.
To address this, we added a feature in members’ profiles on both our website and mobile app that displays their points balance before and after the Avios adoption. This provides reassurance and clarity when they check their Avios balance. We applied a similar approach for other changes, highlighting them in appropriate places across different stages of the user journey.
We also performed thorough testing across our digital touchpoints to ensure that all of the functionalities are working as expected and that membership information is accurately displayed.
Beyond Avios adoption, were there specific features or functionalities introduced during the digital revamp that aimed to enhance the overall user experience for members?
With the adoption of Avios, we have begun displaying the estimated Avios members can earn from Finnair flights during the booking process. Given that Finnair Plus is now spend-based, providing accessible Avios earning information is crucial to assist our members in making informed purchasing decisions. We also factor in members' tier levels when presenting this information.
Additionally, we have introduced a new benefit called milestones, which rewards members within their current tiers, complementing the existing tier benefits. Members can now dynamically view their milestones progress in their profiles on our website.
How did the digital platform cater to different member segments (frequent flyers, occasional travelers, budget-conscious individuals)?
Our digital touchpoints tailor member experiences and features based on their tiers. For frequent flyers with specific tier benefits, we highlight these on the Finnair website and mobile app when they are logged in, ensuring they have access to features relevant to their tier. For instance, certain tier members can view upgrade availability information before booking, helping them make informed decisions about utilizing their upgrade benefits.
For other member segments, we display Avios-earning information based on to their tier and ensure a seamless booking experience by pre-filling personal information and special diet preferences if they have indicated these in their loyalty profiles. Additionally, we tailor profile content based on members' associations with specific Finnair Plus partner products, enhancing their overall experience.
In-Flight Service
How do you envision data and analytics playing an even greater role in loyalty program management in the future?
The key is to leverage data and analytics to deliver an exceptional value of the loyalty program to our diverse member segments, surpassing their expectations. While much has been discussed about the role of data and analytics in personalization—tailoring benefits and offers based on preferences, location, and past purchases—it is equally important to focus on the core foundations of loyalty programs. This includes helping members maintain or upgrade their tier levels and providing personalized recommendations on how to achieve this based on their profiles.
For example, some members primarily collect Avios through flight purchases, while others accumulate loyalty currency via credit card and partner transactions. By understanding these patterns, we can offer tailored advice and opportunities to maximize their earnings and benefits.
From an organizational perspective, data and analytics are crucial for forecasting trends and member behaviors, informing long-term strategy and decision-making.
Beyond Finnair Plus, what are some other innovative digital trends you see emerging in the airline loyalty program space?
While personalization and machine learning have been widely discussed, sustainability is now an emerging trend in airline loyalty programs. Many airlines are integrating sustainability elements into their loyalty program initiatives. Using digital channels like mobile apps, they introduce interactive features that allow members to earn points by participating in eco-friendly activities. This approach not only enhances member engagement in meaningful ways but also fosters positive brand affinity.
Back View of Finnair Carrier
You are speaking at this year’s Digital Travel APAC Summit. Can you share what the audience can expect to hear from you and what excites you about this event?
I am excited to join a keynote panel alongside seasoned professionals from the airline and travel industry. I will share insights on the current and future state of personalization in the airline sector, highlighting the initiatives we have implemented at Finnair and discussing the current challenges we face in this area.
Bonus: Finnair is a Finnish airline, and Finland is known for its stunning natural beauty. If you were recommending a hidden gem or off-the-beaten-path destination within Finland to a tourist, where would it be and why?
I highly recommend visiting Rauma, located on the western coast of Finland. In the old town, known as "Old Rauma," you can explore colorful wooden houses that make up a UNESCO World Heritage Site. The town boasts a rich maritime history and is renowned for its traditional lace-making technique. Additionally, you can enjoy the beautiful nature and sea around the islands of the Rauma archipelago. Rauma is easily accessible from Helsinki by bus.
Hear from Jennifer Elizabeth at Equarius Hotel, Singapore, on 15th August, 9:30 AM Keynote Panel: Driving the next phase of personalisation – How much progress has the travel industry made in personalisation, what challenges you have faced, and how can you eliminate booking noise to create memorable moments? Find out more here!