KLM’s porcelain houses, first introduced in the 1950s, are the physical, low-tech precursor to the airline status designations we see today. jbarro writes
Photo: DSB/Getty Images/iStockphoto It’s a weird thing: If you fly intercontinental business class on KLM, at the end of the flight they will give you a little, blue-and-white porcelain house, filled with booze. It’s a souvenir gift from the airline, but more importantly, it’s a status symbol. If you have a row of them in your home or your office, it serves as a tasteful announcement that you fly KLM business class a lot.
Airline elite status programs work in part by providing tangibly valuable rewards to the most frequent flyers. If you devote more of your business to one airline, you’ll get award tickets and free upgrades, free drink vouchers and free checked bags. But these programs also work by offering more subtle emotional reinforcement: Devote more of your business to one airline, and the airline will send messages about how much you matter. Ideally, those messages will be visible and audible to others.
And this is a powerful customer loyalty mechanism, as customers are motivated to buy more KLM international business class tickets to collect the figurines they need to extend the bar chart — even if KLM does not offer the most convenient itinerary or the lowest price. Of course, there’s nothing stopping other carriers from introducing their own business-class tchotchkes to compete with KLM. But making the tchotchkes is the easy part. The hard part is convincing customers to see significant value in them.
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