Alaska's popular Visa cards measure up to a big success
Program with Bank of America a
win-win partnership
March 16, 2005
Although
putting people on airplanes is the company’s number one business, the Alaska
Airlines Visa card, issued by Bank of America, is a big money maker. What
started as a friendship with a little bank down the street has grown into a
formidable partnership that in 2005 will generate more than $225 million in
annual gross contributions to Alaska Airlines.
 As with other
Mileage Plan partners, Alaska Airlines sells miles to Bank of America, which
in turn gives them to its customers – one mile for every dollar spent on
their Visa card. And proceeds from the Alaska Airlines Visa are
triple those of five years ago, and growing at about 28% per year.
Tom Romary,
vice president marketing, and his team on the Bank of America account say
the bank’s importance to Alaska Airlines is huge. In fact, as Alaska
Airlines’ single largest Mileage Plan partner, the bank represents the
lion’s share of all proceeds from the sale of miles.
And, equally as important is the role that the Visa card plays in
personalizing the relationship between Alaska Airlines and its customers.
“The card has served to solidify our relationship with our frequent flyers,”
explains Ann Ardizzone, managing director, marketing programs. “Our
customers use the card everyday for purchases of groceries, gas and more.
Each time they take it out of their wallet or purse, it reinforces the
Alaska Airlines relationship.”
Ardizzone points out that, not only is the card profitable, but it also
helps reinforce the value of the Alaska Airlines brand and differentiates us
from other airlines. Once a customer gets the card, they are invested in
the Alaska Airlines Mileage Plan and are frequently reminded of the benefits
of earning miles on Alaska Airlines.
And the company’s luring plenty of new cardholders. New sign-ups for the
card have more than doubled in the last five years. And, Alaska’s just launched a new card for Canadians
that attracted thousands of sign-ups in just the first few weeks. In fact,
representatives from Bank of America say that the Alaska Airlines Visa has
become their most successful card program—in terms of portfolio growth.
The secret, according to Jennifer Irwin, supervisor partnership
marketing, is a great product and a vast distribution network. The cards are
widely promoted on the Web, at the bank, via direct mail, advertising,
inflight – and by Alaska Airlines’ own employees, who can win cash and
prizes for their efforts.
“It’s a win-win-win partnership,” says Irwin. “Employees win prizes, the
bank wins new accounts and Alaska Airlines wins revenue and loyal
customers.”
|
