Thirty years ago, American Airlines launched the first frequent flyer program, AAdvantage. With more than 66 million participants today, AAdvantage Loyalty Program President Maya Leibman declares AAdvantage “one of the most successful loyalty programs in the world.” She shares her insights into forming a strong loyalty program strategy, crafting an associated payment card program and using social networking tools to build brand awareness in this exclusive interview with PYMNTS.com.
PYMNTS.com: For our readers who may not be familiar with the AAdvantage program, please give us a brief overview of how the program works today and how it fosters customer loyalty.
MAYA LEIBMAN: There are two main components to the AAdvantage program: first, customers earn miles by flying with us or one of our partner airlines, by doing business with over 1,000 participating companies – car rentals, hotels, and retailers to name a few – or by using one of our branded credit cards for everyday purchases. You can easily rack up the miles! Second, customers can redeem those miles for great trips to destinations they’ve always wanted to visit. Miles can also be redeemed for upgrades, vacation packages, car rentals, hotel stays, magazine subscriptions and even Admirals Club memberships. Additionally, miles can be donated to the Miles for Kids in Need program, benefitting children all over the world. There are many ways to use your miles for whatever your individual needs and desires are.
PYMNTS.com: How has the program evolved over time?
LEIBMAN: It’s been 30 years since American Airlines introduced AAdvantage as the first frequent flyer program. We started with 230,000 members and now have more than 66 million members across the globe, making AAdvantage one of the most successful loyalty programs in the world. That’s something that makes me very proud. Most importantly, we have created more meaningful interactions with our customers. The AAdvantage program has evolved from a simple rewards program, as it was 30 years ago, to a robust, global program with rich rewards, countless opportunities to earn miles, and strong engagement and recognition of our customers today. Without their loyalty, we would not have a program!
PYMNTS.com: In your opinion, what is the key to building a successful loyalty program that both provides a return on your investment and improves customer retention?
LEIBMAN: The key is knowing the customers. At American Airlines, we work very hard to develop an understanding of our customers by looking at their travel habits and asking for, and more importantly, using their feedback. With a better understanding of our customers, we have a competitive advantage, because we know how to retain and grow repeat business. The AAdvantage program helps American remain competitive and ensures that we are engaging our customers in ways that matter to them.
PYMNTS.com: Many airlines have frequent flyer and other loyalty programs, as well as associated payment cards. What makes AAdvantage unique?
LEIBMAN: Our Citi / AAdvantage card offers customers a variety of fun and unique benefits. Card members can use fewer AAdvantage miles for round-trip travel with Reduced Mileage Awards, and they don’t have to worry about blackout dates on award travel. In addition, using the card for purchases is one of the simplest ways to make sure that your AAdvantage account stays active. AAdvantage miles won’t expire as long as members earn or redeem at least one AAdvantage mile once every 18 months. With countless ways to earn and redeem miles, it’s easy to maintain an active account and our payment products make it even easier.
PYMNTS.com: How are you using social networking sites, like Facebook and Twitter, to complement your overall loyalty efforts?
LEIBMAN: We actually have some very exciting things going on in the social media space. Earlier this year, the AAdvantage program launched Facebook and Twitter channels dedicated solely to sharing information on all the great ways to earn miles with American Airlines. Posts focus on ways for AAdvantage members to boost their mileage balance and the channels encourage followers to share their personal tips and tricks for racking up miles. We’re receiving a lot of great feedback from our “mileage junkies” about these channels.
Our most recent social media milestone came from our “Mystery Miles” promotion, where we saw the number of Facebook “Likes” grow from 3,000 to nearly 230,000 people after the first week of the promotion. This rapid jump in followers clearly showed us how much our customers value both AAdvantage miles and the dialogue this new platform provides.
PYMNTS.com: At PYMNTS.com, we’re all about “what’s next.” What initiatives will AAdvantage pursue in the near future to continue to increase customer loyalty?
LEIBMAN: Without giving too much away, I’ll just say that we have several exciting things in store for 2011 as we celebrate our 30th anniversary. Be sure to check out aa.com/AAdvantage30th on April 18. After 30 years, the AAdvantage program continues to lead the industry in innovative ways to earn and redeem miles. Our new social media channels are a great example of how we’re taking the program to the next phase of its evolution. We’re also constantly evaluating the value of our program offerings and presenting new options and increased flexibility to our members.
Maya Leibman is President – AAdvantage® for American Airlines, the world’s first frequent flier program that today has more than 66 million members and more than 700 award destinations across the globe. In 2010 AAdvantage members redeemed just fewer than 7.2 million one-way flight awards. In this position, Maya oversees all aspects of AAdvantage activities worldwide, including the airline’s customer relationship marketing (CRM) and customer research initiatives.
Prior to her position in AAdvantage, Maya served as Vice President – Information Technology Systems. In this role Maya was responsible for the technology needs of various AA organizations including Cargo, Eagle, Human Resources, and Finance. In addition, Maya led a team focused on the implementation of a new realtime Passenger Service System (PSS) which serves as the technical foundation for Reservations, Airport, Revenue Management, Sales and other critical AA business functions.
Maya joined American in 1994 in the Revenue Management department. There she was responsible for developing pricing strategies, implementing next-generation yield maximizing systems, and managing the start-up of yield management services for AA partner Aerolineas Argentinas in Buenos Aires, Argentina. She then moved to Interactive Marketing and was responsible for the definition and implementation of the Customer Relationship Management (CRM) vision at American Airlines. From there, Maya moved to the Employee Technology team where she directed the creation of Jetnet, American’s employee internet portal, which provides the 80,000+ AA employees with a variety of self-service tools designed to reduce costs and improve employee engagement.
Prior to her current position, Maya was responsible for both the back office and customer-facing technology used at all of American’s airports. There she managed the Self-Service and Curbside Check-In systems which handle over 70% of American’s daily flight check-ins and together are directly responsible for over $100MM in operational savings for the airline.
Maya received her BA in English Literature from the University of Chicago in 1988 and her Master of Business Administration degree in 1994 from the University of California, Berkeley. She serves on the Dallas Theater Center Board of Trustees and volunteers for a number of local organizations including the “So SMAART” program where she works with minority girls ages 9-12 to teach them about technology and life. Maya lives in Dallas with her husband and son.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More