Slider

Loyalty Program for Sky Pearl Club

Winning the pole-position in the home market needs comprehensive features

CSA has been outperforming its competitors in member growth since the go-live of LMS in 2017. By seamlessly upgrading to the most recent LMS Version 2004, the CSA Loyalty department was able to independently implement a new Platinum-Tier Level by configuration and unlocked even more attractive features to strengthen the market position of the Sky Pearl Club.

The rapid pace of market growth and our company‘s plans for expansion made it necessary to upgrade to a modern software solution. It is a pleasure to work with our partner LPS as we can rely on the great loyalty know-how of the team as well as the flexibility of the LMS platform. We are looking forward to the upcoming releases and will be happy to discuss further innovation together with our long-term partner LPS.

Mr Lu Chun, VP Information Center

China Southern Airlines

illustration arrow

100+

million members
The amount of Sky Pearl Club members in 2019

50

airline partners
Members can collect and spend miles through partner airlines

120

non-air partners
The programm includes partners in hospitality, car rental, financial services, OTAs, telecommunications and healthcare

illustration arrow

Sky Pearl Club

China Southern Airlines
and its frequent flyer program Sky Pearl Club

China Southern Airlines (CSA) is Asia’s leading airline with over 152 million passengers in 2019 and more than 224 destinations in 40 countries. The airline operates from its hubs in Guangzhou and Beijing China Southern Airlines was a member of the SkyTeam Alliance until the end of 2018. By working closely with its global airline partners, including American Airlines and Qatar Airways, China SouthernAirlines continues to expand its route network to serve more destinations around the world.

Main Challenges

01

The growth of the airline was not matched by the growth of the program in terms of member base and partner base.

02

CSA needed to be able to introduce changes in the loyalty mechanics by configuration to make its program more attractive and keep up with current developments in the domestic and international airline loyalty market.

03

The legacy solution was identified as the main reason for the program‘s lack of growth, as it was technologically outdated, inflexible – especially regarding onboarding and management of new partners – and because it had high maintenance costs.

illustration arrow

Convinced by Features

CSA has selected LPS with its extensive know-how as best partner to support their transformation and choose the Loyalty Management Suite (LMS) as perfect solution to solve their technological challenges.

Our Challenges

Based on CSA´s business requirements, LPS re-engineered business processes like air earn processes with air- and non-air partners.

General loyalty mechanics

Partnermanagement

Burn

Earn

Results

Profitability

Increase in revenue from frequent flyers and significant decrease of operating and maintenance costs

Relevance

Increace for customers by providing a high degree of personalisation in costumer communication both in marketing and services

Scalability

Ability to support rapidgrowth of the member base from 30m (at the cutover) to more than 50m members (in August 2020), representing an increase of more than 66% in less than 4 years

Time-to-market

Fast reaction to market changes and evolving business requirements without the support of the IT department

LMS enables China Southern Airlines to grow its loyalty business by driving member engagement and by expanding its partner network, both at lower cost.