A few years ago I started using a credit card that rewards me with frequent flyer miles. The idea sounded great at the time. I use my card a lot on business and with all the flying I do, I figured I could look forward to several “free” flights by cashing in the mileage points I accumulate.

Boy, am I naïve (it sounds nicer than saying I’m stupid)!

I recently visited the airline’s website to book a seat for a golfing vacation and quickly learned my choices were few and far between. I don’t suppose the golf courses in Syracuse, New York are very inviting in February. Unfortunately, though, that’s about as close as I could get to the time when Id’ like to tee off in September.

Frequent flyer programs sound like a great incentive; however, with fewer scheduled flights, most of which are full, the chances of you going where you want to go, when you want to go, are remote indeed.

The good news is the credit card companies are responding to this problem and broadening their incentive programs as a way to retain and secure current and future customers. American Express cardholders, for example, can now trade skymiles points for concert tickets instead of an airline ticket to a destination they probably don’t want to visit anyway.

Meanwhile, Visa executives believe the benefits of knowing what rewards resonate with customers is of tremendous value for them in the market. For example, they researched data from 65 million credit card holders to determine their buying habits. In turn, they use this data to advise the merchants in niche markets about the products their customers are buying on credit. The merchants are then able to set up special events to attract these types of buyers, most of whom make their purchases on a Visa credit card.

The result: everyone wins!

How does your company build loyalty with its customers? Do you offer incentives to your customers? It’s great if you do; however, when was the last time you checked to see if the rewards you offer are benefits your customers want and use? Furthermore, are they comparable or better than what your competition is offering?

Don’t assume your customers will remain loyal to you just because you’ve done business with them in the past. The truth is that customer loyalty is often up for sale to the one who brings the most value, so you’ll have to offer your customers lots of reasons for them not to change suppliers.

Lastly, never forget, your best customer is someone else’s AAA prospect!

Here is a great site that tells you how Frequent Flyer programs work.

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