Connexions Loyalty, a leading global full-service provider of loyalty program management and solutions, rewards fulfillment and card benefits, recently announced the launch of a partnership with SMILES SA, a leading Brazil-based coalition loyalty program. The partnership will allow Connexions Loyalty to expand its presence in the fast growing South American market and provide SMILES’ 10 million members with an array of travel rewards redemption options.
Scott Lazear, President of Connexions Loyalty, told Loyalty360 that he believes this partnership can positively impact customer loyalty. Loyalty360 asked Lazear a series of questions to expand upon this new and exciting partnership.
What factors prompted this collaboration with SMILES, and how will it impact customer loyalty?
The partnership with SMILES is a good fit for both companies and came together naturally. Connexions Loyalty is a global company with offices all over the world to serve our clients, but we are always looking to expand our reach into new markets, especially ones with such explosive growth as Brazil. This partnership allows Connexions Loyalty to expand into the growing and dynamic Brazilian market with an established leader in SMILES. For SMILES, the benefit is clear as well. They are always looking to improve the customer experience for their members and by teaming with Connexions Loyalty they can now offer their over 10 million members a best-in-class portfolio of hotels that includes over 160,000 different properties across the globe. We expect the impact to customer loyalty overall to be very positive as this partnership will enhance and expand the options and experience for the customer.
What makes this collaboration unique for Connexions?
This is a unique collaboration for Connexions in several ways. First, it’s great to partner with such a well-established and respected company as SMILES. It is one of the largest coalition loyalty companies in Brazil with over 10 million members. Second, because of how well positioned the SMILES coalition program is within the Brazilian market (population exceeding 220 million people), it will enable for a much larger distribution of Connexions’ leading travel content. Third, this is one of Connexions Loyalty’s first partnerships with a coalition loyalty company which is the market model in Brazil.
What is unique about the SMILES loyalty program?
SMILES is a coalition loyalty program, which is the model in Brazil, but is a little different than we are used to here in the U.S. SMILES was originally an airline loyalty program, but has grown and expanded to represent a wide range of companies, one of them being GOL Linhas Aéreas, which is still the biggest commercial partner in the coalition and the airline with the largest number of flights in Brazil. Customers can earn SMILES air miles through a number of partner airlines including GOL, Air France, Delta Airlines, KLM, Qatar Airways, Aerolíneas Argentinas, Etihad, TAP, Alitalia e Copa Airlines – and shortly Aeroméxico and Korean Air, which together fly to over 160 countries and 700 global destinations.
Since its inception, SMILES has expanded both the way members can earn air miles as well as redeem them, partnering with Brazil and Latin America's largest commercial banks, credit card administrators, major retail chains, hotels, restaurants, car rental companies, gas stations, pharmacies, publishing companies, etc., to ensure SMILES program members have a wide range of options to earn and redeem air miles.
Is there any difference in loyalty programs in North American and South America?
The Brazilian market can be fairly nuanced as it pertains to both loyalty and coalition programs. The customer expectations around the types of content are very demanding both from a payment flexibility standpoint (i.e. the use of installments when paying with cash or cash plus points) as well as relevancy. In order to successfully engage customers across the Brazilian market, it is critical that your redemption content has extensive coverage across both small and larger cities.
How do you define customer loyalty?
We believe true loyalty is achieved when you have created a brand advocate. Connexions defines customer loyalty by attaching the context of customer purchase behavior and it starts long before a purchase and lasts long after. It starts with the brand promise you make to customers as you share how your product or service solves a problem they have. Through this promise, customers become knowledgeable to the point they have a desire to purchase your product or service. At which point you are responsible for delivering on that promise.
If you deliver on that promise you might build a loyal customer that will repurchase from you. Some might consider the customer that repurchases from you a loyal customer but we strive for something beyond that. We believe brands should strive for advocacy. We believe that is the next step and what creates the emotional attachment to a brand's products and/or services. We believe a customer that not only comes back for more of your product or service but is willing to advocate on your behalf is the most powerful customer relationship. They will tell others how great your product or service is at fulfilling a need. They will go to battle for your brand. They are defenders of your brand