Airmiles case studies

We're proud to tell you about our success stories with global brands, when Avios was Airmiles.

Lloyds TSB

One of the scheme's biggest partners, Lloyds TSB gives Airmiles members up to 1 mile per £10 spent on a Lloyds TSB Airmiles Duo Credit Card Account.

Launching their partnership with Airmiles in June 2007, in the first three months Lloyds TSB saw a 60% uplift in their credit card sales and became market leader in the new credit card market.

As a result, they've increased their involvement in the scheme, developing new products including a Premier card account.

Success in the first year:

  • Credit Card spend with Lloyds TSB has increased by 7% since launch4
  • 25,000 applications made in the first five days of Lloyds TSB's reward-earning credit card account
  • 60% increase in Lloyds TSB credit card sales since launch
  • The account won 'Best New Credit Card Product of the Year' at the Card Awards, 2008
  • Over 1 million people now collect with the account
  • Lloyds TSB's share of the new credit card market soared – they now lead the market and have sustained this lead over time

What they said

There is no doubt that Airmiles has had a demonstrable positive impact on the financial performance of Lloyds TSB's credit card business and has helped us create one of the largest American Express consumer card portfolios outside of the US.Colin Walsh, MD Cards and Payments - Lloyds TSB, 2008

British Airways

In 2007, British Airways appointed Airmiles to deliver high-speed, high-value loyalty projects. This led to us cultivating redemption engines for ba.com, one of the largest online applications in the UK, via five dedicated teams.

The success of The Mileage Company's relationship with British Airways has led to the airline making many quick-win changes to their Executive Club proposition – the airline’s frequent flyer loyalty scheme. These changes could not have been achieved in house to the same timescale, due to a lack of specialist resource and focus.

Successes:

  • Since May 2008, Airmiles has produced significant increases in BA loyalty bookings and profit into the business. The project was delivered faster than previous BA-run projects, with no compromise on quality. We followed an incremental approach, delivering six implementations between August 2008 and February 2009
  • As a result, British Airways has received a positive return on investment in just a few months, with revenues continuing to grow and forecast to exceed targets
  • The team has become a model for British Airways, with many BA Executive Directors, including the CEO Willie Walsh, visiting the team to understand their success formula and discover how they can roll it out across the business
  • IAG CEO, Willie Walsh, feels the speed and quality of delivery, fast decision making and clear accountability across stakeholders makes the scheme a good example for other areas of BA to follow

Tesco

In March 2002, we switched from Sainsbury's and launched with our new supermarket partner, Tesco.

Since the launch, we've become a key part of Clubcard Deals. Deals is the aspirational element of Tesco's Clubcard proposition, which was designed to add greater engagement, especially among families.

And Airmiles brought something new and unique to Tesco's Deals.

Successes:

  • Sainsbury's lost 1% of its sales volume - and 60,000 of its most valuable customers
  • Sainsbury's said this was a result of "the loss of the Airmiles contract, a slow down in consumer spending and a tough period of comparison" - Financial Times, 2002
  • 21% of collectors moved their weekly Sainsbury's shop to Tesco
  • Tesco received much positive press coverage over its main competitor, Sainsbury's
  • The launch's success has led to Airmiles becoming the largest single partner in Clubcard Deals
  • Tesco's Airmiles collectors are intensely loyal - consistently reflected in spend lift, product holding and customer value performance indicators

We have offered Airmiles and BA Miles to our Clubcard customers since 2002, and throughout we have seen a very active and motivated customer base take up the offer. Miles appears to have a real emotional pull for customers who collect them, and is a good balance to our more value driven Clubcard Deals scheme. Now that taxes and fees are included in the Airmiles proposition we are seeing customers respond positively to the idea of flying the world for free - with nothing else to pay. It's a feel good thing and even more relevant as the economy gets tougher and hopefully will keep customers coming back for moreSteve McArdle, Director - Tesco Freetime Ltd

4Based on market research

Back to top

Primary navigation

Secondary navigation

Need to contact us?