The client
LATAM group is the largest airline conglomerate in Latin America, with a presence in the domestic markets of Brazil, Chile, Colombia, Ecuador and Peru. The group sets the gold standard for connectivity, boasting an extensive network spanning 117 destinations including both passenger and cargo operations. This achievement is amplified by the frequency of flights and connection possibilities, particularly enriched in South America through strategically positioned connection centers. The group stands out for its steadfast commitment to punctuality, safety and operational excellence, which is part of the permanent focus to improve the experience of all passengers. This includes those who travel for business or pleasure, as well as companies in South America that export their products to other continents, and customers from countries that transport their products.
The situation
LATAM Pass is LATAM Airlines’ frequent flyer program, and its main purpose is to foster customer loyalty by offering a diverse range of incentives and benefits for those flying with LATAM Airlines and engaging with the extensive LATAM Pass partner ecosystem. With a global membership exceeding 40 million, the program spans multiple countries in Latin America. Accessible through a user-friendly website across various nations, LATAM Pass also boasts its dedicated app, which was exclusive to Brazil.
The old LATAM Pass mobile app had 2 million users in Brazil and was the main channel of traffic to the website. In 2022, the app had a rating of 2.1 in stores. Users accessed the app mainly to search for tickets and view their account information. Due to the old code base, this APP was not modular nor robust and did not allow LATAM Pass to rapidly deliver new products, services and experiences for the customer. On top of that, the actual app had some security vulnerabilities that needed to be addressed.
LATAM Pass is a key part of the business and a key revenue source at LATAM Airlines, it is expected to grow and become even more central in overall airline performance. Aligned with this mandate, LATAM Pass is undergoing a process of redefining its long-term strategy and value proposition and a core part of that is quickly moving towards a strong digital backbone, becoming mobile first and improving customer satisfaction. As part of this objective, the first step in this direction was to replace the existing LATAM Pass app in Brazil and develop and deliver a brand new app in six months.
The solution
The scope of this engagement was to partner up with LATAM and BCG to execute a replacement of the old app, creating a new state-of-the-art scalable MVP app with current functionalities and run it until the end of this first year (2023), while developing new features. Along with the app replacement, the idea was to build a world-class backend, frontend and database for the new app that is modular, based on cutting-edge techniques and technology. After releasing this new app to the Brazil market, we had to put our efforts into discovering what comes next to build better and more innovative functionalities to improve the experience of LATAM Pass clients.
Our biggest challenge was to be able to maintain the go-to-market date proposed at the beginning of our engagement. We executed one month of discovery with an inception on the first month, using the other five months to build a robust mobile platform.
The process
LATAM employs hybrid technologies to streamline development workflows for the LATAM Pass app. React Native and TypeScript form the frontend stack, creating unified Android and iOS apps. The backend relies on Java and Spring Boot for REST, with Bitrise for mobile CI/CD and Jenkins managing microservices. Our teams operate as self-contained units, adopting MicroFrontends on the frontend with a Design System library and Core components. On the backend, Backend-For-Frontend (BFF) layers orchestrate microservices, enhancing scalability and coordination in our development and operational framework.
The outcomes
On October 18th, the latest LATAM Pass application was launched, and the response was remarkable. Within just 12 days of being available on app stores, we achieved an impressive 77,000 downloads. Additionally, the app has facilitated 960 credit card applications, demonstrating a strong engagement with the user base. Notably, 9,856 new clients have enthusiastically registered on LATAM Pass through the app during this period. Furthermore, we are thrilled to report an average of 2,000 daily active users, underscoring the consistent and growing utilization of the application.
This new app represents a significant stride towards aiding LATAM Pass in achieving its objectives of leading the market in member engagement and satisfaction within the realm of loyalty programs in Latin America. It also aligns with the overarching goal of maximizing the value derived from member loyalty to enhance the airline's profitability. By recalibrating key OKRs—including the number of members, percentage of active members, member satisfaction and revenue percentage attributed to the frequent-flyer program—we anticipate a positive shift. The comprehensive impact of these efforts will be thoroughly assessed by the end of Q4 2023, providing valuable insights into the app's contribution to strategic goals.
