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Don’t question the importance of the loyalty plan!

Want to know why you should start your loyalty plan today? In this post we present some facts that will convince you. Read on!
Picture of Salvador Galindo

Salvador Galindo

Soy consultor de marketing especializado en tecnología y mercados internacionales. Mi enfoque se basa en ofrecer respuestas originales y estratégicas que se adaptan a las necesidades específicas de cada cliente. Con una profunda comprensión de las dinámicas del marketing global, he ayudado a numerosas empresas a aumentar su presencia y competitividad, ofreciendo resultados tangibles y sostenibles.
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  • 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.

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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.

Analyzing results is an important step in your loyalty plan.

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.

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How to improve hotel loyalty with the customer database?

1. The main challenge: your hotel needs more direct bookings

A few years ago, hotels relied heavily on OTAs and tour operators to establish an objective occupancy rate and drive guests to hotels. Until then, hotels enjoyed partnerships with travel agencies and tour operators, and guests enjoyed booking package tours.

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However, over time, trends have been changing and travelers, now and more than ever, are looking to make their own choices and book all elements of their trips on their own. Travelers are not only ready, but also willing to book a hotel directly on your website, as long as the sales conditions are similar to those of the OTAs and the booking can be made as simple as possible.

For hoteliers, direct bookings bring huge benefits. Among them, saving on commissions, improving online marketing strategy, increasing profitability and having total control over customer communication. With such promises of direct bookings, it is no wonder that more and more hotels are now pushing their marketing efforts towards the goal of increasing the number of direct bookings on the hotel website.

2. Gain a competitive advantage

It is clear that an increase in the rate of direct bookings would be beneficial for your hotel. But how to achieve this goal

In order to compete with OTAs and tour operators, your hotel must have a competitive advantage. There are two ways to have it: offering a cheaper deal, or offering more value and increasing customer loyalty. While it may be difficult for your hotel to compete with OTAs on the basis of price, offering a customized offer and establishing a trusted relationship with customers would be the best way to attract travelers.

 The key to adding value to your hotel offer is to know your customer and offer them what they need. Attracting them through the emotional factor is essential, and you must establish a genuine connection with your potential customers, conveying your beliefs so that your guests can relate to them.

When customers observe that a hotel brand really cares about their experience and tries to find the best solution to make their vacation experience unforgettable, it is easier for them to make the decision in favor of booking directly with your hotel.

A common way to add value and personalize communication with your guests is to implement a loyalty program. With a loyalty program implemented in your establishment, you will be able to tailor your messages to the needs of individual customers, understand their preferences and meet their expectations.

customer-database-hotels

3. How can your customer database help?

So, a hotel needs a loyalty program to offer valuable and personalized services to customers, and thus gain a competitive advantage. To shape your loyalty program, you must have a database of your customers with personal information about them. Hoteliers should create a customer database with basic contact information and more elaborate personal information about guests’ preferences and interests.

Acquiring this personal information will give you the ability to tailor your messages to each potential or existing customer, and offer them content, products and services that meet their particular needs. This will undoubtedly surprise them by the degree of personalization and the measures your hotel takes to provide them with the best possible vacation experience. You would be able to establish a lasting relationship with your customers based on trust, thus ensuring the most satisfied customers, who would be happy to promote your hotel brand.

4.

1. The biggest challenge: Your hotel needs more direct bookings

A few years ago, hotels relied heavily on OTAs and tour operators to achieve an objective occupancy rate and bring guests to the hotel. Until then, hotels enjoyed partnerships with travel agents and tour operators, and guests were happy to book package tours.

{{cta(‘bb2971b9-bf36-4c36-8edc-75223dba5208’)}}

Over time, however, trends have changed, and now more than ever, travelers want to make their own choices and book all elements of their trip themselves. Travelers are not only ready, but willing, to book a hotel directly on your website as long as the terms of sale are similar to those of OTAs and the booking process can be made as simple as possible.

For hoteliers, direct bookings bring huge benefits. These include saving commissions, improving online marketing strategy, increasing profitability, and full control over customer communications. With such promise of direct bookings, it’s no wonder that more and more hotels are focusing their marketing efforts on the goal of increasing the number of direct bookings on the hotel website.

2. Gain a competitive advantage

It’s clear that increasing the direct booking rate would be beneficial to your hotel. But how do you achieve this goal?

To compete with OTAs and tour operators, your hotel must have a competitive advantage. There are two ways to do this: offer a cheaper deal or offer more value and increase customer loyalty. While it may be difficult for your hotel to compete with OTAs based on price, the best way to attract travelers would be to offer a customized offer and build a trusting relationship with customers.

 The key to adding value to your hotel offering is to know your customer and offer them what they need. You need to build a genuine connection with your potential customers and communicate your beliefs in a way that your guests can relate to.

When customers perceive that a hotel brand genuinely cares about their experience and tries to find the best solution to make their vacation memorable, it is easier for them to choose to book directly with your hotel.

A common way to add value and personalize communication with your guests is to implement a loyalty program. With a loyalty program in place at your facility, you can tailor your messages to each customer’s needs, understand their preferences and meet their expectations.

customer-database-hotels

3. How can your customer database help?

So, a hotel needs a loyalty program to provide valuable and personalized services to customers to gain a competitive advantage. To design your loyalty program, you need a customer database with personal information about your customers. Hoteliers should create a customer database with basic contact information and more detailed personal information about guests’ preferences and interests.

Capturing this personal information gives you the ability to tailor your messages to each potential or existing customer and offer them content, products and services that meet their unique needs. The degree of personalization and the actions your hotel takes to offer them the best possible vacation experience will undoubtedly surprise them. You will be able to build a lasting relationship with your customers based on trust, securing the most satisfied customers who will be happy to promote your hotel brand.

4.

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