Hospitality Industry Ready to Launch Loyalty Marketing Program
Client Profile:
A boutique hotel chain, with a reputation for exceptionally unique properties, currently using Tecmark’s loyalty program in 35 locations.
Business Challenge:
Each of the client’s hotels are uniquely branded and owned by separate individuals and investment groups.
The hotel chain did not have a database of their guests’ cumulative stays in the hotels and guests were not recognized or rewarded for their loyalty to the brand as a whole, but rather to the individual hotels they visited. Because of this lack of customer data, the company’s branding messages had to rely on mass communications and advertising, instead of targeted marketing.
Furthermore, the company did not market to their guests, based on the guests’ total stays, nor did they reward them for their brand loyalty.
Solution:
The hotel chain’s original loyalty program awarded points based on the amount of money a guest spent. The original program grew quickly, but proved too difficult for guests to earn rewards. While frequent guests were actively rewarded, a large group of occasional visitors were not even reaching the first reward level.
After analyzing company’s data, Tecmark made several recommendations and helped the hotel chain launch a new loyalty program.
The new program was introduced in 2006 as a means of collecting guest information, including individual preferences and records of all stays at participating hotel. The new program also features 3 membership tiers, better soft benefits, and rewards that are easier to attain, to encourage member participation. In addition, the new database of guest information made it possible for members to receive individualized promotions, hotel benefits, and point-based rewards.
To encourage the hotel chain’s properties to participate in the program, it is included as a benefit for hotel affiliation, without the assessment of additional fees.
Results:
- Membership grew 132% - 267% annually 2006 – 2009
- Average amount spent per member per visit climbed 9% - 13% annually
- Member visit frequency increased during the recession of 2009