Loyalty Status: Cancelled

Did Delta just destroy its brand loyalty?

There’s been a lot of buzz around Delta Airlines this week.

If you pay attention to travel news or are a frequent flyer yourself, this won’t be news to you. There were rumors (read: potential leak) over the past few weeks that there were going to be drastic changes to the Delta SkyMiles program that would impact status, lounge access, credit card points, and more. Those rumors were proven true, with Delta announcing the changes as a “simpler” way to earn access.

If you want to learn more about all the specifics of the changes, I highly recommend checking out this article by travel writer Chris Dong for the Washington Post. As for Fan of the Fans, this news is incredibly important to us as this is specifically targeting the loyal fans of Delta and could have ramifications across not only the airline industry but other loyalty programs.

Loyalty programs serve a clear goal. Offer and reward return customers in such a way that, over time, you retain them as long-term customers, increase their customer lifetime value (CLV), and create a source of passionate consumers who champion you and help others choose you, too.

These fans feel connected to Delta and the service that they are accustomed to. They choose Delta, many times paying more, changing the times in which they fly or where they fly out of in order to make it possible for them to be on Delta flights. In exchange, they receive a Medallion level that offers perks that make them feel seen and appreciated. They might have a credit card for the sole purpose of having access to a Delta Sky Lounge when they are at select airports. They choose Delta and are met with reciprocity and acknowledgment of their loyalty.

These fans are regularly creating user-generated content (UGC) about their Delta flights, their service, and their lounge experience. They are a word-of-mouth army that pays with their credit cards, their positive sentiment, and their continued choice of airline. They are the moat. They are the strategic advantage, making it clear that paying a little extra is more than worth it. That the choice is rewarded.

I obviously am not invited into the boardrooms and Zoom calls where these types of decisions are made, but I can speak for the fans. I hear their frustration and their sadness that their loyalty no longer feels wanted to be appreciated.

If the current model is unsustainable, there must have been other smaller changes that could have been made instead.

Travel writer Chris Dong gives more context for the shift:

"Without a doubt, Delta Sky Clubs have gotten too crowded. Access got really easy (probably too easy) with a premium Amex card over the last several years. The current model is just not sustainable, but to essentially go from unlimited visits to in some cases, just six visits per year, is a monumental shift. It's a course correction, but one that may be a little too extreme."

The beauty of the SkyMiles program is that members who chose Delta were able to get perks based on their behavior and consistency instead of only being tied to revenue. With the latest changes and removal of qualifiers, your spend is your sole status qualifier, meaning Delta is now the country club for the skies.

Jonathan Jacobs, a devout Delta fan and Million Miler, has been a loud advocate for the airline, sharing his tips and trip highlights. He sees the changes as a clear message to the customer base.

“The new changes to the SkyMiles and Medallion program, even setting aside the changes to Sky Club access, have firmly pushed me away from loyalty and towards complete and total airline free agency.

Delta is not MY partner in aviation anymore. They’ve made a very clear statement: they’re a partner in aviation to a very monied elite.”

If loyalty isn’t rewarded, what will Delta use to be a preferred consumer choice?

@MarceaCazel on Twitter

Marcea Cazel, a freelance travel writer, shares more about her frustration.

“I’m fairly new to the loyalty credit card game, but have several American Express cards, including one for Delta. The main benefits of those credit cards, for me, has been to get into the Delta SkyClubs.

Flying about 14 times this year, it’s important to have a place to relax and grab a drink before a flight out of an unknown airport or during delay or layover. The fees for the Amex cards was worth it for that perk. Now, with these changes, I’ll be reverting back to their free credit card because the other perks for the Delta Amex Platinum aren’t worth it for my needs. I’ll also stop only flying Delta, which I’ve been doing for over 5 years, because it will be almost impossible for me to achieve even the minimum Silver level. I love Delta’s customer service, but these changes are making me rethink my relationship with them.”

The Customer Will Be Heard

In the end, this is not just a choice of airline but also credit card provider. The once Delta loyalists are now using their voices to share their dismay and disgust, knowing they will walk away if these changes are maintained.

@thatjacqueline on TikTok

The thing about loyalty programs is that you create positive reinforcement for the preferred behavior, so when those behaviors are no longer rewarded, consumers know what power they hold.

The love (and money) they gave you can be removed and given to someone else so if nothing else feels their pain, your bottom line will.

@secondhandsandies on TikTok

Are you a member of the Delta SkyMiles program? Do you plan on leaving?

Will This Create Future Ripples?

Other airlines have three different options now.

1. Do nothing. Keep their current loyalty programs as is and see if there is any change in their current customer base due to Delta’s move.

2. Sweeten the pot and court Delta customers. This situation provides a feeding frenzy opportunity for airlines who want to get new customers. If you can provide just enough to make them feel wanted, it might be enough for them to try your airline instead of Delta.

3. Follow Delta’s lead and only care about consumer spending. This is a scary but very possible response. If all the main airlines follow Delta’s lead, consumers are the losers, and the playing field is balanced back to what it was before.

I’d like to think that other companies outside of the airlines are watching. Seeing if this smooths over after loyal customers go through their stages of grief and then go back to their previous behaviors OR if this is a hill they will fight and die on, forever severing their tie to the Delta brand.

The immediate and visceral reaction to these changes cannot be overstated.

Delta has the opportunity to show that they are listening to their loyal customers or they can wait to see if there really is a break-up.

Would love to know your thoughts.

Stay tuned for more of my thoughts later this week as I travel to see Hozier and share my experience.

CG