Bang for the Buck: Enhancing Your Team's Loyalty Know-How

By Shannon Dooley Operations Manager - Quality Assurance Practice, LRA Worldwide | March 25, 2012

I have a confession to make: I am a hoarder.

No, I'm not a hoarder of the canned goods, collectibles, or cats variety; rather, for me the thrill comes in the form of points, miles, or nights. I bask in the delight of the chase - strategizing how to maximize my earnings through codeshares and credit cards, double points and triple mile challenges. Chances are that if there is a loyalty program out there, I'm probably in it. In fact, I'm willing to bet that some of you reading this article right now are nodding feverishly in agreement, perhaps wondering if I will share some of my tricks of the trade. Sorry, but I keep those (loyalty) cards close to the vest.

As our good friends at American Express like to say, "membership has its privileges." Indeed, membership is quite privileged when said membership is used effectively. Low-cost vacations thanks to complimentary hotel nights, holiday gifts purchased on points, your favorite Starbucks coffee creation on the house... all well-earned perks available for the savvy, point-conscious consumers' taking. I will not take full credit for discovering loyalty programs on my own, or how to best maximize my earnings. Rather, I learned the ropes from one of the best in the loyalty program business: my father. Although retired now from his former road warrior days, he can without hesitation tell you how many years (yes, years) in room nights he has spent staying with his favorite hotel chain and how many points he has in any one of his frequent flier accounts at any given moment. Naturally, this quest for point maximization has lead to consternation in the family from time to time - vacations, for example, were dictated not by where we wanted to go, but rather by the proximity of a points-eligible property. Still, after some tough negotiations we were usually able to come to a very agreeable destination, leading to a wealth of fun, sun-soaked childhood memories. These trips were the reward for those hours spent cramped in the middle-seat on a cross-country flight, the nights spent "sleeping" next to the freight elevator shaft, and the countless non-smoking rental cars that clearly someone had lit up in the drive prior. In essence, it was a thank you not only from Dad to my mom and me for putting up with his time away from us, but also from his travel partners along the way.

So that's what a loyalty program truly is: a thank you. No, I'm not naïve enough to think it's just that – loyalty programs are an invaluable tool in driving wallet-share, creating effective marketing plans, and ultimately serve as a goldmine of customer data. In the hotel world nowadays it's a "price of admission." but humor me if you will and let's focus on the initial premise: the loyalty program as a thank you. Thanks for staying with us, thanks for spending with us, thanks for choosing us. That's the heart of the matter: you need your guests to choose to spend their time, energy, and money with your property. Guests who, like me, may have their favorite "go to" brands, but also have a stack of loyalty cards... and aren't afraid to use them.

Ask anyone anywhere about basic service tenets and thanking a guest will come to the top of the list. In the case of the loyalty program, the thank you does not arrive verbally, but rather in the silent but significant deposit of another point, night or mile into the loyalty bank. On a more frequent basis properties around the world are complementing that "silent" thank you with verbal recognition. Good hotels do this routinely through thanking each guest at the end of a transaction and, in the case of many hotel brands, sharing the guest's point totals or nights earned as part of a routine script or on guest request during check-in or check-out. Great hotels, however, do this by not only engaging the "bookends" of a guest experience at check-in and check-out, but also by weaving it throughout the guest experience in subtle ways.

A few simple adjustments to your team's knowledge and approach can make all the difference in the world to your guests, your associates, and ultimately, your bottom line. It's a no-brainer that all other things being equal (great service, great facility, great staff), valued guests are usually happy guests. Guests feel valued when they are recognized and thanked for their business, and happy guests mean fewer headaches for your associates and less compensation for properties to write-off. But let's take this a bit deeper: valued guests – guests who feel that recognition, welcome, and gratitude throughout their stay – drive your business. They drive your Guest Satisfaction Scores, your TripAdvisor ratings, your occupancy levels, your revenue streams, and can strengthen your property's (and ultimately your brand's) position in the marketplace. Let's go back to my dear old Dad for a moment: aside from the on-command recitation of points levels and nights stayed, he is a staunch advocate for his preferred brand and created other life-loyal fans, including yours truly. That advocacy stemmed not from just some extra chocolates on the pillow at night, but from associates that, upon seeing him enter a lounge six months after his last stay at a property, had his drink ready and waiting. It was an acknowledgement that his presence was anticipated, welcomed, and relished.

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Coming up in March 2019...

Human Resources: An Era of Transition

Traditionally, the human resource department administers five key areas within a hotel operation - compliance, compensation and benefits, organizational dynamics, selection and retention, and training and development. However, HR professionals are also presently involved in culture-building activities, as well as implementing new employee on-boarding practices and engagement initiatives. As a result, HR professionals have been elevated to senior leadership status, creating value and profit within their organization. Still, they continue to face some intractable issues, including a shrinking talent pool and the need to recruit top-notch employees who are empowered to provide outstanding customer service. In order to attract top-tier talent, one option is to take advantage of recruitment opportunities offered through colleges and universities, especially if they have a hospitality major. This pool of prospective employees is likely to be better educated and more enthusiastic than walk-in hires. Also, once hired, there could be additional training and development opportunities that stem from an association with a college or university. Continuing education courses, business conferences, seminars and online instruction - all can be a valuable source of employee development opportunities. In addition to meeting recruitment demands in the present, HR professionals must also be forward-thinking, anticipating the skills that will be needed in the future to meet guest expectations. One such skill that is becoming increasingly valued is “resilience”, the ability to “go with the flow” and not become overwhelmed by the disruptive influences  of change and reinvention. In an era of transition—new technologies, expanding markets, consolidation of brands and businesses, and modifications in people's values and lifestyles - the capacity to remain flexible, nimble and resilient is a valuable skill to possess. The March Hotel Business Review will examine some of the strategies that HR professionals are employing to ensure that their hotel operations continue to thrive.