Creating a loyalty program for tourism businesses
Some may see loyalty programs as an out-dated form of marketing. However, the reality is that in the last six years, memberships continued to increase 10% year on year in the US alone. One study even put the number of current memberships per household at 25.
While that proves that they remain popular, what it does not tell you is if loyalty programs remain beneficial for the companies who are offering them in the tourism industry.
A US study performed by McKinsey, which covered both the US and European markets detailed that the results vary by sector, and that one of the remaining industries still seeing a worthwhile return on their loyalty programs is tourism.
Here, we will explore a few tips that can ensure success when it comes to loyalty programs.
Using the collected loyalty data for your benefit
Almost all the major UK supermarkets now target their potential customers based on their loyalty card use. On top of the initial reward, which comes in the form of coupons or points, Tesco’s send out coupons for use specifically targeted to previous items purchased.
By gathering the information about a potential customer, supermarkets are offering targeted reductions to those who could quite as easily go to another supermarket.
The same can be applied to the tourism industry. If you have a loyalty card and notice that a family always comes to your location every September, but they missed the previous year, send out offers pertaining to your location for September in June or July to bring them back.
Offering rewards that appear to be more valuable than they actually are
Some hotels that are mainly used by those on business offer their loyalty card users upgrades, free nights and other benefits. The reality is that the terms attached to the rewards mean that they cost the company very little, but look expensive.
For instance, one hotel provider may offer one night free for every ten nights spent at one of their locations. However, the terms may include that it must be a weekend, which is when occupancy rates are low and the chances are that there are dozens of empty rooms.
If the customer usually spends £79 on a room for a night, the reward seems like £79 face value, but the reality is that to the chain if the room went un-used the cost is nominal.
As long as you are clever and think your loyalty plan through thoroughly before releasing it, you’re almost guaranteed to see a positive return on investment.
If you want to talk to us about creating a loyalty program or any other marketing initiative, contact The Scrummy Team today.
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