Clearly when a program is just about rewards, loyalty isn't achieved. Loyalty is defined as "faithful" and faithful is defined in part as "allegiance" and "trust"; neither of these can "points" alone achieve. After all, aren't points what programs share in common? Loyalty results from one's ability to gain trust. Loyal guests are actually saying, "I trust that you will recognize me as the individual that I am." READ MORE
HOTEL BUSINESS REVIEW
October FOCUS: Sales & Marketing
Sales & Marketing: Effective Hotel Loyalty Programs
This month's feature articles...
Frequent travel programs present much value to weary travelers, who often consider their benefits as well deserved awards for the not so glamorous experiences associated with air travel. Furthermore, these programs create loyalty by recognizing the select few as more valued customers. They provide travelers with the perks of convenience and a feeling of importance. Understanding each business' unique strengths is necessary in order to allocate the right amount of resources to retain their customers. An increase of the quality of experience when staying at a hotel necessitates focus on those areas which are key drivers to creating loyalty. READ MORE
The Holy Grail in the hotel business is, obviously, customer loyalty. The way in which most hotel brands achieve this - or try to achieve this - is by means of customer loyalty and frequent guest reward programs. They are all extremely expensive and occupy a disproportionate amount of management time and focus. While there is no suggestion that this approach be dropped (it's far too late for that), this article discusses some of the inherent weaknesses in these programs and some of the ways in which individual properties can build true customer loyalty by focusing on the experience they deliver to their guests in their city in real time. ? READ MORE
Who is a loyal customer? Often, people think that those who frequent businesses on a regular basis are loyal customers but the reality is frequent guests might not always be loyal guests. True loyalty is about emotion. In the hotel space, loyal customers prefer your hotel or brand to the point where they develop a personal attachment, one that compels them to go out of their way to stay with your hotel or brand, making them more immune to higher prices or a less convenient location. READ MORE
As the volume of feedback from traditional customer feedback sources continues to decline - response rates from these channels have fallen from 50% in 2007 to 28% in 2011 - mentions per brand, region, and even unit (or product) per year on social feedback channels are increasing exponentially. Customer satisfaction can no longer be relied on as a metric to predict loyalty. The presumption has been that satisfied guests will remain loyal. Research shows, however, that customer satisfaction does not always equal customer loyalty. READ MORE
Loyalty is a very complex, emotional concept, which is why it presents danger when training programs are built around increasing guest loyalty. If businesses want loyal customers, they have to get in it for the long haul and they will earn loyalty only after they have gained trust. Trust is built by a series of repeated actions, not words, or flavor-of-the-month campaigns. READ MORE
Customer loyalty programs have continued to proliferate in a wide variety of firms both inside and outside of the hospitality industry. Customers have come to expect some type of reward in return for patronage. Despite this widespread growth, managers frequently question the actual value that these programs contribute to the bottom line. In this paper we offer a number of bases that might help managers think beyond their current program. READ MORE
Loyalty programs are under fire these days; from being cookie cutter to not producing a return on investment. Is your loyalty program missing opportunities to maximize the experience - and the spend - of visitors who might fall through the cracks? READ MORE
Brand loyalty can mean many things. Most hoteliers would agree that loyalty certainly means likelihood to return to a hotel, likelihood to return to the brand, and likelihood to recommend the hotel and brand. With the rise in popularity of social media, the last component-recommending the hotel and brand-has taken on even greater significance. Similarly, a loyalty program can be many things. Today's hotel loyalty programs are highly evolved marketing campaigns and should contribute to brand loyalty as defined above. Some of the questions and concerns hoteliers have are discussed in this article. READ MORE
With the earn-and-burn rate of loyalty programs slipping, hotels are looking for innovate ways to engage guests in their loyalty programs and drive point redemption. From incorporating corporate social responsibility, games, and more experiential awards into their strategies, several hotels are blazing new trails in guest loyalty. READ MORE
- Sales & Marketing
- It's Not Just About the Bonus Points Anymore: Rethinking the Elite Guest Experience
How do your best customers feel when their reward reservation is mysteriously cancelled while on a weekend getaway…and your brand's reward office is closed until Monday? Chances are, not too good. One too many service disconnects like this will make your guests rethink just how "elite" they really are. In an increasingly competitive marketplace, how are you creating a world-class experience for your best guests? Heightening the service level at every stage - from corporate to property level - may help you keep your best guests' heads in your beds. READ MORE
Before the boom of social media, hotels could attract bookings based on brand, loyalty programs, location and price. Today, recommendations and reviews are driving more bookings that anything else. So how can savvy hoteliers drive sales and loyalty in this new era of user-generated content? This article will examine practical steps hotels can take to drive loyalty and describe how leading hoteliers are winning over guests on Twitter, Facebook and other social networks. READ MORE
Many marketers mistakenly equate loyalty with rewards. Loyalty, however, denotes advocacy and commitment, not a points-based reward scheme. This belief is supported by the June 2010 Cornell Hospitality Report which contends that loyalty programs focusing on price-oriented rewards actually encourage more comparison shopping as customers seek out the most profitable loyalty program benefit. The points system, says the report, promotes loyalty to the best offer, not loyalty to the brand. READ MORE
Hotel CRM, loyalty programs, reward points and status levels can significantly boost customer retention and long-term brand loyalty. Even better, these programs give hotel marketers and on-the-ground team members deep levels of personalized data on guests that can be used to significantly improve their experience from the time of booking to the time of checkout. Your digital assets are the perfect lynchpin for achieving an exceptional guest experience. But there are a few steps to aligning business objectives with customer needs. READ MORE
With brand presence on the internet being almost universal, the hospitality space has become increasingly competitive. This, coupled with the fact that price and location are major drivers in the booking decision, means that securing loyalty to any one brand is a challenge. The recent economic downturn saw many travel providers leveraging their loyalty programs in an effort to stimulate bookings and brand loyalty. And while 2010 saw a consistent increase in the share of loyalty program members, the end result is that travelers are members of multiple programs and loyalty is a fragmented commodity. This underscores the need for hospitality providers to stimulate loyalty in other ways and continuously differentiate themselves so that they remain front and center in the consumer's brand consideration set. READ MORE
Hotels cannot simply attach a mobile element to their existing loyalty programs, call it mobile loyalty, and hope for the best. Both traditional/existing loyalty programs and the mobile channel (the mobile features the hotel wishes to implement) need to be integrated with each other. Vanessa Horwell looks at how future implementations of programs that revolve around points, and/or traditional recognition-personalization loyalty programs can tap into the mobile customer's psyche through both form and function. Find out the characteristics of the mobile consumer, and some recommendations for integrating loyalty programs and mobile elements into a potent reward program. READ MORE
Legendary customer service doesn't just happen overnight. If you decide to go the extra mile to keep your customers loyal, rather than just "satisfied", you will find yourself and your team investing in opportunities to increase the value of your property. This decision requires a shift in your thinking, values, and training, but one that will definitely pay off as you make great customer service a part of your culture. READ MORE
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