To enjoy long-term success in hospitality, hotels must seek out and engage repeat guests. In order to encourage a wave of consistent repeat guests, many brands implement a loyalty program, enticing guests with a variety of rewards, such as a free stay, a spa treatment, or a concierge service, after a guest has reached a certain numbers of stays.
However, not all loyalty programs are created equal. Although the concept of creating a loyalty program is rather simple, not all programs find success in engaging guests to become repeat customers. Aron Ezra, CEO of OfferCraft, a company that helps hotels and resorts around the world use “gamification” software to improve their marketing, training, and bookings, offers his advice as to what makes a successful loyalty program.
“A good loyalty program is one that participants want to use,” Ezra says. “It inspires a positive feeling among guests, and the program guidelines are not overly complicated and are easy to understand.” Loyalty programs that are too complex or have varying ways to earn rewards often confuse guests and turn them off from participating in the program, he says.
Another key aspect of successful loyalty programs is presenting guests with tangible rewards that are outlined clearly. For example, a program that provides guests with a free night after three consecutive stays is more likely to be successful than a program that simply offers a reward to guests with three consecutive stays.
A loyalty program should also reflect the spirit of the brand, according to Ezra. At the core of a guest’s hotel experience is how much they enjoyed a property’s overall brand. A loyalty program that does not align with the brand of the hotel will send mixed messages. A hotel in a popular food tourism destination is more likely to experience successes with a loyalty program if it offers rewards like food vouchers or cooking lessons than if it offered a free spa treatment as a reward.
“Using predictive analytics to create more personalized rewards is a trend that’s starting to come up in programs,” Ezra explains. Using data collected from past stays, brands can create more individually tailored rewards. When a loyalty program is more focused, guests are more likely to actually use the rewards they earn instead of letting them expire. “It’s all about knowing what your guests are interested in and using that to your advantage,” Ezra says.
Programs that are struggling or are not being successfully implemented usually fall to such a fate because they are not engaging enough, or the process of earning rewards is too difficult. These programs can be revamped by looking at what is successful with competitors. Overall, loyalty programs should be enjoyable for guests, Ezra says. Creating a program that is as fun and exciting as possible will keep guests engaged and coming back for more.
Great read! Many times the simplest ‘gestures of appreciation’ for our guests have the largest impact. To evoke loyalty, the guests must feel catered to. We have to focus on creating programs that are tailored to each guest’s particular interests.