Category Archives: Hotel Loyalty Programs

Are Your Customers Asking For A Divorce Or Are They ‘Feeling The Love’

According to a new study released by CMO Council entitled “The Leaders in Loyalty: Feeling the Love from the Loyalty Club“, 54 percent of the consumers surveyed let it be known that thanks to the barrage of irrelevant messages, low value rewards, and impersonal engagements, they aren’t feeling the love.  In fact, they are thinking of asking for a divorce.

The study suggests “The reality of today’s loyalty landscape is that too many rewards, points or perk programs out there are still only as sophisticated as those early trading stamp programs.  They dish discounts and free stuff to repeat buyers and gather about as much insight from the customer as those first shopkeepers exchanging place settings for swollen stamp books.”

So how does your brand’s loyalty program stack up against #1 American Express?

While you ponder that question let’s look at key indicators that customers didn’t like about loyalty programs.

  • Too much spam and junk email topped the list of negatives at 44 percent
  • Too many conditions and restrictions at 38 percent
  • Rewards that lacked real value at 37 percent

Other prevalent complaints included members having a hard time redeeming points or rewards, program membership lacking value, and communications and services not being personalized or target specifically for members.

If you intend to have a successful loyalty program you must understand key customer requirements like “personalization”, “individualization” and “value”.  Today, customers are looking for greater rewards that “earn” their business and while they are open to “perks” what they really want is to be embraced and know by the business they patronize.