- In the United States, between 2013 and 2015, membership in loyalty programs increased by 26%.
- Loyal customers buy up to 90% more frequently.
- Each year, poor customer service costs companies around 36,000 million euros.
- 73% of customers say that good customer service will make them fall in love with the brand.
- 68% of millennials would switch to another brand if it meant getting more benefits.
Have you noticed? Every day companies are working more and more on their loyalty programs and now you know why.
Grow your brand with a loyalty plan
If you are still not convinced, you should also know that loyalty programs have passed with flying colors the brands’ growth objective. Many tourist establishments are already working with hotel loyalty software and have noticed positive results.
Customer loyalty is proven to be one of the best ways to accelerate the growth of your business. Also, remember that retaining existing customers is much more profitable than trying to find new ones. By working with a loyalty program you will quickly see the benefits.
Thanks to loyalty programs, your reputation will also improve. How? It’s that easy: if a customer is loyal to your brand, it is because he is satisfied with the services received. Then, it will be very easy for him to become a promoter of your hotel among his family and friends.
You should also remember that including attractive rewards for your shoppers in your loyalty program will make your guests spend more at your facilities. However, it is not about offering just any offer or gift, you must first make sure what are the wants and needs of your customers.
Know your buyer-persona
Of course, this will not be possible if you do not know your guests. You can conduct a market research and you will know what they are looking for in their vacations. First you need to know who your customers are, and then, once you know them, you can make them offers they won’t refuse!
Another advantage of working with a loyalty plan is that your customers will be happy because they will notice that you are trying to create a relationship between them and your brand and they will feel special. In the end, the benefit is mutual.
Finally, the last reason why you can’t stop working with a loyalty program for your hotel is because, once it’s in place, you can relax. Your loyalty strategy will not need to be worked on in depth once it is in place. In fact, loyalty feeds back: the more a customer buys, the more rewards you offer, and so on.
Create your loyalty program in five quick steps
Surely at this point of the post you are already aware of the importance of creating your own loyalty program to get more customers to your hotel. So, now you have to learn a little more about how to configure this program.
Here are the five steps to follow, no matter which loyalty program you choose.
1) Research your target
Research is the first action you will need to take and probably one of the most important. When we say research, we mean that you should know absolutely everything about your guests. What do they spend their money on? How much do they invest in your products? How often? What is your benefit from these purchases?
2) Prepare your loyalty program
Ask your guests directly: Are they satisfied with your services? What needs to be improved? What other services would they like you to offer them? You have to understand their needs and wants.
Why is this step so important? Because it is at this point that you will decide which program is best suited to your hotel, based on the results of your surveys. At this point you will see clearly which actions are best suited to your customers. You may have to implement two different loyalty programs, perhaps even more if your customers are very heterogeneous.
The only thing you should always keep in mind is that you should try to satisfy as many guests as possible.
3) Define your objectives
Being clear about your objectives is a task you cannot ignore. It is key. Your objectives should follow the ‘SMART’ rule: they should be Specific, Measurable, Achievable, Relevant and Time-Based.
4) Establish a budget
Creating a loyalty strategy requires a significant initial investment. But you’re sure to notice great benefits soon. How much of your resources will be invested in your loyalty plan? Think about it.
5) Measure results
As mentioned in step three, you need to set measurable objectives. So, once you have implemented your loyalty program, you will be able to measure its results (in your case, to measure whether your guests’ loyalty has increased). If not, change your strategy quickly!
If you are interested in learning more about the different functionalities that your loyalty program can offer you, be sure to read this article.
Are you already convinced of the importance of a loyalty plan? Don’t think twice and get started! And don’t forget, the loyalty of any brand rests on three pillars: quality, trust and recognition.