Amtrak Revamps Loyalty Program to Drive Simplicity

Amtrak Loyalty Porgram

Simplicity was one of the major themes at the 8th annual Loyalty Expo earlier this year. That theme was the driving force behind Amtrak’s recent decision to revamp its Guest Rewards loyalty program.

Loyalty360 caught up with Vicky Radke, Senior Director, Amtrak Guest Rewards to find out more about the changes to the loyalty program.

What factors prompted Amtrak to revamp its loyalty program and what is new and more attractive about it now?

A guiding principle for our team was to simplify the program to drive greater member participation and engagement. We recognized that over the years the program had become overly complicated and we really wanted to emphasize an easy-to-participate structure to attract new customers and new members to the program.

The new program will add a number of great features that we are excited about. On the earning side, members will continue to earn two points per dollar spent on Amtrak travel as they have since program inception. Additionally, we‘ve added point-earning bonuses for all Business class (25%) and Acela First class (50%) travel.Amtrak simplifying

On the redemption side, members will now redeem points for Amtrak travel based on ticket price versus the specific route or number of zones traveled. This allows members to plan and select their trip using points as the currency for free travel within our Amtrak.com booking path. Using a variable redemption structure that slides with the price of the ticket allows us to reduce the redemption price on many tickets and will broaden the options for customers through the elimination of blackouts and Acela time-of-day restrictions, which currently prevent members from redeeming during high-demand periods. We’re also adding a cash plus points option and for the first time members will be able to use their points to redeem for Amtrak multi-ride tickets and monthly passes.

Lastly, members will be able to keep their account active and points current with any qualifying transaction—earning or redeeming—within three years versus the current policy that recognizes only paid travel activity. We listened to our customers about how they engage with the program, and how they value their points. Our new policy reflects the diversity of engagement we see with our members and addresses their passion for keeping their points and account active.

Did customer feedback play a role in the revamping process?

Yes, we listened to customers and solicited feedback on their engagement with the program. We conducted customer research where we asked current members and Amtrak customers who hadn’t joined the program – what they knew about it, what they liked about it, what they didn’t understand about it, or what they loved about it. And based on that customer feedback, we put together a new program structure that will continue to deliver an exciting and engaging value to our current members but also will broaden the appeal to new members and a greater segment of our customer base across the Amtrak system.

What does customer loyalty mean to Amtrak and has that definition changed or evolved in recent years?

Customer loyalty means that our customers put our brand high in their consideration set, and choose Amtrak whenever possible. In more recent years, customer loyalty has expanded to mean loving the experience a brand delivers. We know our customers are very loyal to Amtrak because they enjoy the freedom and comfort of traveling by train, along with the great benefits they receive with Amtrak Guest Rewards. 

We are all on the customer service team and are focused on meeting the ever-changing needs of our customers. At Amtrak, we are committed to delivering a great travel experience for our riders. Inevitably, there are times when brands may not deliver to the highest standard.  As we build relationships with our customers, we become more than a big company. And because of that relationship, our members will look beyond any single experience and trust that we will do our best to make up for it and deliver for them next time.

How does (mobile) technology factor into the new look loyalty program?

We are committed to adding new features and functionality to keep up with our customers’ expectations. For instance, Amtrak Guest Rewards was among the first loyalty programs to move to a responsive web design. This means our members have user-friendly access to Amtrak Guest Rewards throughout their travel journey and across all devices they choose to use. We have seen a significant increase in digital engagement as well as with our Amtrak Guest Rewards promotions as a result of this improvement. And our mobile apps are increasingly popular with customers who now rely on them for train status updates, booking travel, and ticketing.

What are your goals for the program?

Our goal is to deliver a simplified, improved program that will engage our current members while enticing new ones to join. Here are a few examples of how we are meeting this goal:

One of the major improvements that is coming with the revamped program is that there will be the ability to do a lot more self-serve on Amtrak.com where members will be able to use points to book any trip including trips that include sleeping accommodations or Auto Train –anything that you can book on Amtrak.com will be available for our members to use their points.

We are also bringing our redemption process fully into the booking path with the new program. Today, when a customer explores travel on Amtrak.com there’s a separate booking path for a redemption trip. In January, when we launch the program changes, the redemption process will be fully integrated into Amtrak.com allowing members to select their itinerary and then allowing them to toggle between points and cash on the same screen to select the option that best fits their needs. We are excited about the enhanced usability and this affords our members.

Our point redemption minimum for Amtrak travel will be reduced from 1,500 points to 800 points, and on Acela were bringing our lowest redemptions down from 8,000 points to 4,000 points. This will allow more members the opportunity to redeem for Acela for city pairs that in the past would have required twice the points.  These changes to lower some of our redemption options addresses feedback from customers that they felt they would never earn enough points for a free trip—so they opted not to join. We’re now making it easier than ever for those customers to get to that first free trip.

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