How Hotel Brands Can Activate Loyalty Data to Create Great Experiences

The Persistence of Memory

By Allison Ferguson Senior Strategist, Merkle Inc. | July 23, 2017

When I travel for business, I often return to the same city frequently – and when I do, I usually check into my favorite hotel. No matter how many times I return to that hotel, however, the front desk agents always treat me as if it’s my first stay. They acknowledge my platinum status, certainly, and welcome me by name. After that, however, the desk agent will ask for my photo ID and credit card – just as they did the last ten times I checked into the same hotel.

This phenomenon may bother me more than the average traveler because I’m a loyalty marketing consultant, and I know that somewhere behind the scenes, there’s a hotel property management system containing a data set rich with insight about my travel habits, transactional history, frequency of stay, preferred amenities, and other useful information about me. The problem: The hotel isn’t using that data.

Imagine if, instead of providing the standard arrival greeting, the agent greeted me by saying, “Welcome back, Mrs. Ferguson. We trust you’ve been well since your last stay with us three weeks ago. I see by your file that you prefer room 1116 – would you like to book it again? That’s great. We’ve already entered your usual 3pm checkout into the system. Just so you know, the workout facility is open 24-7 with keycard access. And as you’ve dined in our restaurant during the last two stays, we’ve rewarded you with a complimentary appetizer or dessert during your next dining visit. Please enjoy your stay!”

Instead of treating me as if they’ve never met me before, the hotel team would demonstrate memory of my relationship with them. Such a demonstration would go a long way toward locking in my loyalty.

Loyalty Program Value Lies in the Data

The real value of loyalty programs, we know, has always been in the data they generate. A “persistent ID” enables the tracking of member behavior, regardless of payment type, channel, or booking method. With this connected visibility, hoteliers can, in theory, develop a full view of their customer relationships and assess the value of individual members to the brand. In exchange for this access to their behavior, loyalty program members receive a suite of program incentives, such as rewards, upgrades, and offers, as illustrated in the Illustration 1.

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Coming up in March 2018...

Human Resources: Value Creation

Businesses must evolve to stay competitive and this is also true of employment positions within those organizations. In the hotel industry, for example, the role that HR professionals perform continues to broaden and expand. Today, they are generally responsible for five key areas - government compliance; payroll and benefits; employee acquisition and retention; training and development; and organizational structure and culture. In this enlarged capacity, HR professionals are no longer seen as part of an administrative cost center, but rather as a member of the leadership team that creates strategic value within their organization. HR professionals help to define company policies and plans; enact and enforce systems of accountability; and utilize definable metrics to measure and justify outcomes. Of course, there are always new issues for HR professionals to address. Though seemingly safe for the moment, will the Affordable Care Act ultimately be repealed and replaced and, if so, what will the ramifications be? There are issues pertaining to Millennials in the workforce and women in leadership roles, as well as determining the appropriate use of social media within the organization. There are new onboarding processes and e-learning training platforms to evaluate, in addition to keeping abreast of political issues like the minimum wage hike movement, or the re-evaluation of overtime rules. Finally, there are genuine immigration and deportation issues that affect HR professionals, especially if they are located in Dreamer Cities, or employ a workforce that could be adversely impacted by federal government policies. The March Hotel Business Review will take a look at some of the issues, strategies and techniques that HR professionals are employing to create and sustain value in their organization.