Status-based loyalty programs offer specific benefits based on a customer’s spending level. They are commonly implemented in sectors where customers may have varying purchasing behaviors. These programs aim to reward key customers, even if they represent only a small portion of the customer base but generate a large share of revenue (according to the Pareto principle, 80/20).
They have long been used by airlines and car rental companies to reward frequent business travelers. Through these programs, high-level customers are granted exclusive benefits, such as access to airline VIP lounges, often represented by a status card.
However, a drawback of status-based programs is that downgrading to a lower status can be poorly received by customers whose spending has decreased. For example, the loyalty programs of the ride-hailing company Kapten and the ferry company Corsica Linea offer specific benefits based on customer loyalty levels.
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