Confidence blow for loyalty programs Claire Sweeney
THE collapse of Ansett and the subsequent loss of customer rewards points through linked incentive schemes have dealt a severe blow to consumer confidence in loyalty programs, according to the Incentive Practitioners Council.
Diners Club members’ Ansett Global Rewards points are still frozen by Ansett’s administrators with no compensation received by members to date.
Incentive Practitioners Council chairman Peter Gray said he found it “amazing” that Ansett Global Reward points-for which Diners Club has paid more than $150 million-are “all of a sudden… not worth anything”.
He has called for the establishment of a trust fund system to protect consumers.
Meanwhile, Diners Club has launched a Diners Club Rewards program, replacing Global Rewards. Diners Club will hold all reward points earned by members of the new scheme until such time as the customer wishes to use them.
“Provision is made in our books for those points, ” according to Diners Club marketing executive James Atkins. “The risk [to consumers] is reduced.”
While the new scheme provides “increased flexibility for consumers” according to Atkins, Diners Club has not made any new provisions to protect consumers’ reward points in the event of a sponsor company’s collapse after the points have been transferred from Diners Club.
Meanwhile, consumer loyalty scheme Fly Buys has either “reimbursed their [customers’] points or secured another Ansett flight” for the customer, according to Fly Buys general manager Doug Crocket.
