After an incredible week in New York City introducing Upgrade Pack to potential clients, partners and end users, followed by a really relaxing week with the family in Yorkshire (that's way up in the North of England for those not familiar with the UK), I wanted to follow up on my last post, where I talked about the problem we solve for our partners, airlines and hotels chains. In this post I wanted to explain about the problem we're solving for our clients:
Upgrade Pack has a number of different client profiles from membership services to corporate employers using Upgrade Pack as an employee benefit, however our core client base and the customers the platform was originally designed for are banks and credit card providers.
Banks and credit card providers have for years been using loyalty services to retain and reward customers, especially their high value customers, the most popular of which have been travel related services. Over 55% of their customers have been found to prioritise bank accounts and credit cards with travel benefits.
The problem being faced by the banks and credit card providers is that, whilst travel related loyalty services have historically been effective, they are becoming more complex and costly to support and there has been little to refresh these offerings in recent years. As a result their loyalty benefits now lack exclusivity and impact because their competitors offer the same ones (airport lounge access, concierge, travel insurance etc). Without innovation and a new means of creating differentiation, banks and credit card providers are left paying for services that are delivering diminishing value to both them and their customers.
The concept of Upgrade Pack was created when our CEO realised the extent of the challenge banks and credit card providers were facing. When matched with the challenge airlines and hotel groups had with unsold premium inventory, there was the basis for an incredible platform that addressed the problems of both. A new travel based loyalty service for banks and credit card providers and a closed marketplace for the airlines and hotel groups to reach their target audience.
What then turned the concept into a business was the ability to also address a problem faced by our most important set of constituents: our users.