Win the Connected Traveler with Connected Loyalty Strategies

By Allison Ferguson Senior Strategist, Merkle Inc. | March 19, 2017

"Travel in the young is part of education, in the elder a part of experience." Francis Bacon made this observation in the 17th century, and it resonates now. Travel today is a highly aspirational, emotional, and educational experience. However, today's experience is largely a digital one, which is evolving our roles as hoteliers and marketers at the very pace of innovation. We must constantly use people-based marketing to re-imagine how we connect with travelers and inspire them to connect in return.

There is much in play to win the hearts, minds, and spend of the digital or so called "connected" traveler, who controls an estimated $180B global stay spend on hotels, vacation rentals, and packages (Statista Market Outlook, 2016). Hotel companies, via their loyalty programs, have the opportunity to become the hub for the self-service, end-to-end experience of the connected traveler.

Here is a look at connected loyalty strategies that will make the difference for today's hotel brands, large or small.

Loyalty is Connected to the Digital Experience and the End-to-End Journey

Connected Loyalty means that the loyalty program is intimately tied to digital and to the end to end experience. Skift recently held a discussion with eight hotel executives on the future of their loyalty programs and observed that, "Loyalty is a unifying strategy that, for many, is absolutely crucial to the short- and long-term success of their businesses." (see 8 Hotel Executives Say Where Hotel Loyalty is Headed Next ). Surely, loyalty has evolved into an enterprise strategy and complex marketing science that intersects with both the digital and the end-to-end travel journey.

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Guest Service: A Culture of YES

In a recent global consumers report, 97% of the participants said that customer service is a major factor in their loyalty to a brand, and 76% said they view customer service as the true test of how much a company values them. And since there is no industry more reliant on customer satisfaction than the hotel industry, managers must be unrelenting in their determination to hire, train and empower the very best people, and to create a culture of exceptional customer service within their organization. Of course, this begins with hiring the right people. There are people who are naturally service-oriented; people who are warm, empathetic, enthusiastic, pleasant, thoughtful and optimistic; people who take pride in their ability to solve problems for the hotel guests they are serving. Then, those same employees must be empowered to solve problems using their own judgment, without having to track down a manager to do it. This is how seamless problem solving and conflict resolution are achieved in guest service. This willingness to empower employees is part of creating a Culture of Yes within an organization.  The goal is to create an environment in which everyone is striving to say “Yes”, rather than figuring out ways to say, “No”. It is essential that this attitude be instilled in all frontline, customer-facing, employees. Finally, in order to ensure that the hotel can generate a consistent level of performance across a wide variety of situations, management must also put in place well-defined systems and standards, and then educate their employees about them. Every employee must be aware of and responsible for every standard that applies in their department. The April issue of the Hotel Business Review will document what some leading hotels are doing to cultivate and manage guest satisfaction in their operations.