United MileagePlus
United’s MileagePlus is the world’s most rewarding loyalty program, with a wide array of travel, credit card and retail partners. MileagePlus members may earn elite travel benefits, including Premier Access airport services, and have access to one of the most extensive merchandise redemption programs in the industry. With United’s industry-leading global route network, no other airline offers more destinations for award travel.
Once a top elite status flyer on United Airlines, I took on the responsibility of building MileagePlus as a revenue source and marketing channel, first in Japan, and later in the Asia Pacific region. For almost ten years, and with very limited resources, I built a significant portfolio of partners in the region, re-engaged the membership and drove significant revenue growth year on year.
LESSONS LEARNED
For the first time in my career I was not an employee but a contractor. In a bold move during a particularly difficult time in the company's history, I offered to take on an experiment in the field where I had little experience: airline loyalty programs. I learned quickly and applied the theory that these programs depend on a well-balanced "three-legged stool" strategy where the airline, the partners and the members equally benefit from the program.
Despite repeated offers to join the company as an employee, I found it rewarding to perform in an entrepreneurial-style role, where I run the MileagePlus program in Asia as my own business. It freed me from the politics and internal issues that often impede progress and success. I was never afraid to take risks, experiement and defend my initiatives.
In summary, loyalty programs are a marketing tool and few loyalty programs are as consistently successful as airline programs. "Points" or "miles" are simply a currency. I said on more than one occasion, "I am not an airline guy, I am a banker".
BEST EXPERIENCES
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There was so much irony in the fact I was never made a true employee of United MileagePlus and yet I outlasted just about everyone in the company. In the almost ten years in the company, I reported to eleven different people and eight different company leaders.
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One of my most significant acheivements happened when lobbying hard with one of our partners for several years to make a significant change to their product strategy. The risk was primarily on their side but had a potential upside for both of us (and our members). I put my neck on the line for them and they agreed to proceed, although with very conservative expectations. The end result was increases in acquisition, sales and retention beyond my projections and far exceeding the partner's.
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I always thought I was able to establish the true feeling of partnership with our clients. It wasn't about "we win, you lose" but about fair and mutually benefical business strategies. I remained open, brutually honest and positive at all times. And that included my assessments of parnterships in discussions with United.
My work with MileagePlus gave me extenstive experience with the payment card field, especially co-branded credit and debt cards. I worked with partner issuers and banks in Asia and the Pacific region to develop payment products, increase acquisition of new cardholders, stimulate spending and reduce attrition (cancellation of cards). I also worked closely with payment networks including Visa, MasterCard, JCB, Diners Club and American Express.
I travelled extensively in Asia on business, including regular visits to Hong Kong and Mainland China. It was invaluable to me in order to learn the culture, the customs and the differences from region to region.
My work in the PRC market was especially rewarding as I was exposed to bank and consumer finance, regulatory issues and legal contracting.
And the food was amazing!
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