Transforming Loyalty: Solaseed Air's Journey with iLoyal
Overview
Solaseed Air, a regional airline in Japan, faced a significant gap between its frequent flyer program offerings and the needs and expectations of its customer base. While its primary customers were price-sensitive leisure travelers who flew only 2–3 times per year, the existing mileage program was designed for frequent travelers.
This misalignment resulted in high mileage expiration rates and low customer retention. Additionally, with All Nippon Airways (ANA) migrating to the Altea Passenger Service System (PSS), Solaseed needed a future-ready, integrated loyalty solution.
Challenges
- Solaseed's primary customers were leisure travelers who traveled infrequently, making traditional mileage accumulation challenging.
- The previous FFP led to a 70% mileage expiration rate over three years as customers struggled to earn enough miles to redeem meaningful rewards.
- Low engagement and satisfaction due to the difficulty in accumulating earning and utilizing miles.
- The need for a seamless transition to a PSS-compatible loyalty solution.
- Aiming to increase customer lifetime value (CLV) and engagement despite infrequent travel behavior.
Solution
iLoyal, provided by IBS Software, offered a future-ready loyalty solution that addressed Solaseed's unique needs. Key features included:
- Mile pooling: The first of its kind in Japan, allowing families and groups to combine miles, making redemption easier and more accessible.
- Flexible earning & redemption: A revamped approach enabling travelers to earn and use miles in a way that suited their travel patterns and spending behaviors.
- Seamless integration: iLoyal's compatibility with Altea PSS ensured a smooth transition with minimal disruptions.
- Scalability & future partnerships: The platform supported program expansion and future collaborations, ensuring long-term adaptability.
- Reduced customization needs: iLoyal's out-of-the-box capabilities minimized the need for extensive system modifications, accelerating implementation.
Outcomes
Improved accessibility
Mile pooling empowered infrequent travelers to earn miles faster and redeem meaningful rewards.
Enhanced customer engagement
The new program structure provided greater flexibility, aligning with customer expectations and increasing satisfaction.
Redefined airline loyalty
By moving away from a traditional FFP model, Solaseed created a more inclusive and engaging program tailored for leisure travelers.
Future-ready foundation
The scalable and adaptable nature of iLoyal positioned Solaseed for long-term success in customer loyalty and retention.