Back to top

Image: Bigstock

IBM Teams Up with Air Canada to Boost Loyalty Program Experience

Read MoreHide Full Article

IBM Corporation (IBM - Free Report) recently teamed up with Air Canada to assist in improving the latter’s Aeroplan Loyalty Program digital experience for the customers.

IBM’s IBM iX service along with responses from real customers was leveraged by Air Canada to revamp the loyalty program. Air Canada took into consideration insights from 35,000 customers and employees to enhance its loyalty program.

IBM and Air Canada integrated the web and mobile digital experience of the Aeroplan Loyalty program to facilitate customers to view Elite Status benefits as well as transactions’ points along with booking flight rewards among other services.

The latest solution is integrated with cloud-based digital services of Air Canada. This will allow access to both real-time and historical data from all the major systems of the airlines.

Air Canada is working with IBM iX since February 2020 to revamp the Aeroplan loyalty program (web and mobile) interface to offer customers with more engaging and personalised experience. The loyalty program was integrated with all of Air Canada’s digital properties, added IBM.

Increases in Demand for Customer Experience Solutions Bode Well

Air Canada deal is noteworthy for IBM and its business design division, IBM iX. IBM iX forms a part of the company's IBM Services unit. The division helps enterprises to digitally revamp their businesses as well as provide their customers with improved engagement and interaction.

Per a MarketsandMarkets report, the customer experience management market is expected to witness a CAGR of 11.8% between 2020 and 2025 to reach $14.9 billion. The increasing demand for offering personalised experience to customers is driving the market.

Improved customer satisfaction helps enterprises increase customer retention and boost loyalty. This, in turn, boosts the top line, especially in retail, entertainment and banking verticals, per a report from Grand View Research

The report further added that enterprises are increasingly emphasizing on consumer retention than new acquisitions as the cost of retention is 25% less than the cost of acquiring a new customer, citing a study by Harvard Business Review.

The above projections bode well for IBM and IBM iX, which specializes in digital reinvention, experience strategy and design, customer relationship management and business consulting, among others.

However, stiff competition from other technology giants like Oracle (ORCL - Free Report) , SAP SE (SAP - Free Report) , and Teradata Corp. (TDC - Free Report) in this space is a concern.

Sluggish spending across small and medium businesses owing to coronavirus crisis, might negatively impact adoption of IBM’s offerings at least in the near term.

Currently, IBM carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Published in