Yes in reality that is exactly how it works. There are MANY subsets of each tier (10+), and every velocity member is ranked on their importance to the Virgin Group. You send xx_ credit card points to Velocity it increases your score, the fare types you purchase, the routes you fly on (where competition is prime), if you travel (pay) for other parties in your group, if you respond to offers, your age, relationship status, if you're flying is linked to a corporate account(discounts), WHO pays for your tickets, patterns in travel (eg: do you fly SYD-LAX every christmas with the family..), "Gaps" in your itineraries (eg: you are based in SYD, and you fly MEL-SYD with DJ... how did you get to Mel??? Competitor!!) your line of work/industry and your data is profiled to give them an idea of your potential overall worth to the Group.
Airlines have massive amounts of data on you that you would never think about. At the Canberra AFF event last year, the rep from Amex mentioned said they knew more about you than you do. FF programs are exactly the same.
So while the perceived benefits on the surface may look the same (eg: lounge access, priority etc...) there are other things that define loyalty.
In awilcockson's case we could break down the value to Virgin with a few key thoughts.
a) Mobile phone service is with.. ?
b) He has a Velocity CC.... who knows how many points are being credited to Velocity...
c) Virgin Lurkers on AFF / He is also a lucrative QF P1...
d) Insurance, loans, financial requirements... (Virgin is big in this space)
e) Type of fares he has been purchasing (flexi, biz?)
f) Travelling with anyone else? Family members, did he buy their tickets?
g) Constantly travelling with other high-value pax? Maybe he has influence over them too?
h) Maybe he never used a discount when buying fares / paid full price.
i) Velocity can see which banks are crediting points to his Velocity account... they get a good idea of his cards + spending power/income.
j) Did he get any SC during double SC promo? If not... those 400 could easily be 800....
There are a bunch of factors involved and no doubt his account matched the magic formula where Velocity thought he is valuable enough to continue woo-ing. Loyalty is serious business!!
Don't be fooled into thinking everyone is equal.....