In the beginning of our customer loyalty series, we discussed the impact loyalty programs can have on current and future business. In the most recent post we discussed why loyalty programs are not only bigger, but better. This final post discloses which brands have the top loyalty programs, and what perks are most popular among guests.
Some brands have created very effective loyalty programs. These programs provide benefits that cater to the unique personalities and needs of their guests. Guests from these brands say that their membership is very important in hotel selection. In the Americas, AKA guests value the benefits of their membership and are more loyal as a result. AKA's program "I Prefer" offers free internet, upgrades and other extras at 500+ Preferred Hotel Group hotels and resorts worldwide. In the Asia Pacific region, Babylon Casino has created a strong following with its loyalty club, and in Europe, Scandic Hotels has assembled an effective offering targeting the needs of their guest members.
Loyalty program enrollment is hitting record numbers. Although the costs of loyalty programs can be high, the most successful programs combine benefits that create loyalty without breaking the bank.
Effective programs, such as AKA's "I Prefer" program and O Hotel's "STASH", offer an expansive network of hotels where guests can leverage their benefits. "I Prefer" is a high-end, international program servicing guests in over 500 hotels in 65 countries. The "STASH" hotel rewards program allows guests to enjoy the benefits of a large loyalty reward program, but with the option to stay at any of the 180 independent hotels in the "STASH" network. "STASH" provides guests free nights quickly with their points-based system. This added coverage is a compelling feature of these programs and it's working. Guests are signing up to earn instant benefits and then seek out other network hotels to leverage their membership.
With the mainstream adoption of smartphones and social media, there is a convergence of loyalty programs with engagement and gamification. For example, Starwood recently partnered with Foursquare to offer members of the Starwood Preferred Guest (SPG) loyalty program additional points, badges and rewards for their check-ins at participating hotels. SPG members who check in frequently at Starwood locations may be anointed as the "SPG Mayor." Each month, Starwood declares the member with the most check-ins across all its properties as the SPG Mayor. Mayoral duties include sharing favorite insider travel tips and destination hotspots with fellow frequent travelers around the globe.
These efforts are designed to continuously motivate and engage participants, which helps boost brand loyalty. When done right, these repeat visits by customers result in more revenue per customer over time.
In addition to leveraging a vast network of benefits, and harnessing the power of technology, top brands are also in tune with guest preferences. They offer high-demand rewards such as free room nights and cash rewards. Interested in stepping up your loyalty program game? Below is a list of the most popular loyalty program perks according to our Market Metrix Hospitality Index (MMHI). How does your program stack up?
Hotels are providing better experiences, improving overall guest satisfaction and boosting loyalty. Over the past 6 years, hotels and casinos have increased guest value by offering perks and amenities that better speak to guest preferences. As a result, guests have less incentive to try other brands. The most successful programs combine meaningful value with benefits that add to the overall experience.
About the author
Dr. Jonathan Barsky is Co-Founder and Chief Research Officer of Market Metrix, as well as a professor of marketing at University of San Francisco's School of Business and Management.
