How would you measure the success of Alaska Airlines's Mileage Plan loyalty program?

Introduction

Measuring the success of Alaska Airlines's Mileage Plan loyalty program requires a comprehensive approach that considers multiple stakeholders and aligns with the airline's broader business objectives. To address this product success metrics challenge, I'll follow a structured framework covering core metrics, supporting indicators, and risk factors while considering all key stakeholders.

Step 1

Product Context

Alaska Airlines's Mileage Plan is a frequent flyer program designed to reward loyal customers and incentivize repeat business. Key stakeholders include:

1. Customers: Seeking value and recognition for their loyalty
2. Alaska Airlines: Aiming to increase customer retention and revenue
3. Partner airlines and businesses: Looking to benefit from cross-promotion
4. Shareholders: Expecting program profitability and business growth

The user flow typically involves signing up, earning miles through flights and partner activities, and redeeming miles for rewards. Customers interact with the program at various touchpoints, including booking flights, checking in, and managing their account online or through the mobile app.

Mileage Plan fits into Alaska Airlines' broader strategy of differentiation through customer service and loyalty. It competes with other major U.S. airline loyalty programs, such as Delta SkyMiles and United MileagePlus, by offering unique features like miles-based earning (vs. revenue-based) and a diverse set of international partners.

In terms of product lifecycle, Mileage Plan is in the maturity stage, having been established for many years but continually evolving to meet changing customer needs and market conditions.