Today’s traveler has an abundance of lodging choices. With customer loyalty playing an integral role in a hotel’s operations, getting it right can mean all the difference, especially for smaller, boutique brands. When successful, a loyalty program can bring a steady source of referrals, continued stays, and increased spending at the property over time, among other advantages. Here are three approaches to keep in mind when developing and implementing a strong loyalty program:
1Create a seamless experience
First and foremost, signing up should always be a swift and easy process. The initial interaction guests have with your loyalty program sets the tone for how they view your brand. Once set up, customers should easily be able to navigate their profiles and track how many points they earn with each stay. Minimizing promotional emails is also key to avoid bombarding guests’ inboxes and to keep them from unsubscribing.
2Develop well-defined tiers
Make sure that loyalty program members are always building toward something. There should be clear differentiators between each tier so that those who are in the early stages of loyalty have an aspirational picture of what they are building toward. The value of being a repeat guest should always increase over time and go beyond simply offering more free nights. Consider offering guests at premium tiers perks like double points for booking, complimentary upgrades, spa services, and gift cards to nearby restaurants. Additionally, keep in mind that frontloading rewards may be a quick way to encourage more signups, but this type of approach may encourage service-hopping as guests look for first-time deals elsewhere.
3Know your guest
Having a thorough understanding of your property’s market is key. Ask yourself whether most of your guests are visiting for leisure or for business, and what their primary demographic is. These insights will help you develop a loyalty program that fits your customer profile. Also consider leveraging customer data to create a personalized stay. Algorithms that keep track of repeat guests’ behaviors can help your staff go the extra mile. For example, a loyalty detection algorithm can keep track of repeated behaviors, so if a guest always asks for extra pillows, you can place them in the room ahead of the guest’s arrival.
Ultimately, it’s not always just about points and upgrades. It’s also important to get creative and think outside the box about what will inspire loyalty in your guests. The objective should always be to create a memorable and personalized experience that keeps your guests coming back.
