Question

Southwest Airlines promotes its Rapid Rewards program to reward frequent flyers with benefits like free travel vouchers, priority seating, and premium beverages. This is an example of ______ segmentation.

Answer 1

This is an example of Loyalty Segmentation.

Explanation:

Segmentation is a process that is likely to be followed by many businesses to improve their marketing. This process of segmentation helps in developing closer relationships with customers.

The customers are provided many benefits and rewards through loyalty segmentation. This is the marketing strategy followed by the organization to improve their customer relationship.

In the above scenario, Southwest Airlines provides some benefits like priority seating, free travel vouchers and premium beverages to their regular customers as a part of their promotion.