I wonder what the volume is of members with expiring points coming up ? Fairly small I would imagine and so it would be a good marketing exercise for Qantas to try and re-engage with people who haven't had any activity for 18 months. I regularly get wine vouchers like "we haven't heard from you for a while, here's $50 to spend". Come on Qantas, get on the front foot and win back a few customers with a simple email.
Your shopping history is everywhere, and almost every major corporation you deal with is selling your data, right now, today.
For example, Qantas and Woolworths do data sharing. They both know where you live, and using service station transaction data they can paint a map of your human foraging behavior (where you work, places you visit on weekends, the most common routes you take etc..) Qantas then looks at businesses along these paths and targets them to become partners, who will buy QF points and give to you as an inducement for your business.
That $50 voucher isn't luck. It's the result of a lot of (automated) calculations which understand who you are, what you do and how likely you are to change your behavior based on the right message at the right time.
You emotionally accept the voucher because it makes sense given where you've shopped and how you spend your money. It feels like a value-add to your everyday life.
Woolworths announced last week that they would be making customer data available to suppliers.
The only way Qantas will stop points expiry is if:
- Velocity makes the first move. It's logical to raise/lower the bar in line with the direct competition.
- QF loyalty finishes building out their 360-degree view of a customer. This will help them complete the puzzle on how many points you have with competitors, with banks, how much you fly competing airlines, and your potential future value to the program. Velocity are light years ahead in this area.
- Accounting standards are changed, or governments regulate virtual currency to -noexpire (similar to some North American states who are making it illegal for points to expire).
- QF discover an even larger revenue stream to leverage from expired points. For example, enabling you to re-purchase expired points, which would provide double the revenue impact of the points and re-engage the member, all while passing it off as a true benefit to the program and it's members.
