Recognizing & Rewarding Guest and Patron Loyalty
One of Turkey’s largest hospitality companies (consisting of hotels, restaurants, patisseries, and bakeries) desired to launch a loyalty program that would recognize and reward its most valuable customers. However, due to the fact that the different entities inside the company had different target consumer segments, different systems, as well as differing commercial objectives, designing a program that all could agree on was easier said than done. Competing visions around what the definition of a valuable customer should be as well as how the program should work had to be melded into a strategically sound program strategy.
We initially analyzed the behaviors (basket size, spending patterns, spending amounts, etc.) of various consumer types across the various company entities, in order to gain an understanding of what “valuable” really should mean, as well as to understand the drivers of loyalty. Through conducting internal workshops as well as interviews with potential end users, we also were able to gain a clear understanding around expectations and needs. Through tapping into best practices as well as past experiences, we designed a tiered program customized for different consumer segments (mainly value-driven), with a unique value proposition for each tier. The program was designed in such a way as to not only reward spend, but also the right behaviors (i.e. transacting online), providing a set of benefits that were in line with what the various consumer segments expressed appreciation for. In a rather novel manner, we even went as far as having different application, earn, and burn practices for each card tier based on group entity (i.e. you can only apply for a gold tier card at the company’s 5 star hotels, but can use them across the entire group). A comprehensive business case was also developed to ensure the program would have a positive impact on the bottom line.
The designed strategy was accepted by the company’s executive management, with the program launch the key priority across all entities; the unique and comprehensive vision that took all stakeholders’ objectives and viewpoints into account was exactly what the company was looking for. We also were able to leverage our neutrality in ensuring the optimal strategy was adopted by the company. The program’s business case and relevant budget were approved; implementation has commenced, with program launch imminent.