Velocity speeds up loyalty war
Millions of Coles shoppers are now able to redeem frequent flyer points for flights with Virgin Australia under a new partnership that has escalated the war for customer loyalties.
The deal teams up two of the country’s biggest loyalty programs — the Coles-powered Flybuys scheme and Virgin’s Velocity Frequent Flyer, while opening a unified front against the companies’ arch rivals, Woolworths and Qantas, which are already in partnership.
Shoppers are now able to redeem frequent flyer points for flights with Virgin Australia.
However, it also reflects a demand from loyalty program members for more choice in how they earn and redeem points.
By linking their memberships, users of the Coles and Virgin loyalty programs will also be able to earn status credits, accelerating their passage into higher membership tiers of the Velocity scheme, and gaining added benefits such as extra baggage entitlements and access to the airline’s lounges.
The number of loyalty programs has ballooned in recent years, with a survey last month by Roy Morgan Research revealing nearly three-quarters of Australians are members of at least one store loyalty program.