Why does your hospitality business need a loyalty programme? 

In my work with managing the marketing for hospitality businesses over the past 10 years, I have found loyalty programmes essential tools for businesses. They help to increase revenue, improve guest retention, and create a sense of community.

In today’s competitive market, hotel loyalty programs are more important than ever. Guests have many choices when it comes to where to stay, so loyalty programmes can help independent hotels, hotel and holiday cottage groups, restaurants, cafes, and hospitality businesses stand out and attract repeat business.

Working on guest retention and loyalty programmes in my roles for hospitality businesses since 2014, I have developed an adaptable Instant Reward Membership Programme. But first, let me explain a little about hospitality loyalty programmes in general:

BENEFITS OF HOSPITALITY LOYALTY PROGRAMS

There are many benefits to having a hotel loyalty programme:

  • Increased revenue: Loyalty programmes can increase revenue by encouraging guests and customers to book directly with the hotel and to spend more money on amenities and services. Loyalty programmes can also encourage guests to spend more on amenities and services, such as food and beverage, spa treatments, and activities.
  • Improved guest retention: Loyalty programmes can help improve guest retention by giving guests a reason to keep returning. When guests feel valued and rewarded, they are more likely to stay at the same hotel again and again. 
  • Sense of community and belonging: Loyalty programmes can help to create a sense of community and belonging among guests. When guests feel like they are part of something special, they are more likely to be loyal to the hotel. 

TYPES OF HOSPITALITY LOYALTY PROGRAMS

Hotel loyalty programmes are important because loyal customers are important, particularly in highly competitive industries like hospitality. There are many different types of hotel loyalty programmes available. Some of the most common types include:

  • Instant Reward Membership Programmes: A loyalty program that offers members special deals when they book or return and discounts and upgrades during their stay. This type of programme is a great way to attract and retain customers. They are designed to encourage repeat business and to offer value during stays.
  • Points-Based Programmes: Points-based programmes allow guests to earn points for each stay or purchase. These points can then be redeemed for free nights, upgrades, and other rewards. Points-based programmes are the most common type of hotel loyalty program, and they are popular among guests because they are easy to understand and use.
  • Tiered Programmes: Tiered programmes offer different levels of benefits to guests based on their spending or frequency of stays. For example, guests who stay at a hotel often may be eligible for early check-in, late check-out, and other exclusive perks. Tiered programmes can help to motivate guests to spend more money and stay at the hotel more often.
  • Paid Programmes: Paid programmes require guests to pay a fee to join. These typically offer the most valuable rewards, such as free flights and hotel stays. Paid programmes are less common than other hotel loyalty programmes, but they can be a good option for guests looking for the most exclusive rewards.

In this article, I will focus on the Instant Reward Membership Programme, as I find this to be the most effective for independent hotels, holiday cottage and hotel groups, restaurants, and hospitality businesses.

THE INSTANT REWARD MEMBERSHIP PROGRAMME

The instant reward membership programme is a powerful tool for increasing revenue and attracting customers. 

Instant rewards programmes are exactly what they sound like: They reward customers immediately after they take a desired action, such as signing up for a loyalty programme, making a purchase, or leaving a review, in contrast to traditional loyalty programmes, which typically require customers to accumulate points or stamps over time before they can redeem them for a reward.

Ways that small businesses can use instant rewards to increase revenue:

  • Offer a free gift or discount to customers who sign up for your loyalty programme.
  • Reward customers for leaving reviews on social media or review sites.
  • Offer discounts and promotions to members of your loyalty programme.

THE EFFECTIVE LOYALTY PROGRAMME

How to make your instant rewards programme even more effective

Here are a few additional tips for making your instant rewards programme even more effective:

  • It’s important to make joining your loyalty programme and earning rewards easy.
  • Promote your instant rewards program to your customers using email marketing, through your website, or on your social media channels.
  • Personalise your instant rewards programme to each customer’s individual needs and preferences.
  • Track the results of your instant rewards programme to see what’s working and what’s not.

HOW TO CREATE A SUCCESSFUL HOSPITALITY LOYALTY PROGRAMME

When creating a hotel loyalty programme, it is important to consider the following factors:

  • Target audience: Who would you like to reach with your loyalty programme? Once you know your target audience, you can tailor your program to appeal to their needs and interests. For example, if you are targeting business travellers, you may want to offer rewards such as late check-out and free Wi-Fi. If you are targeting families, you may want to offer rewards such as kids’ club access and free meals for children.
  • Rewards: Which rewards will you offer to your members? The rewards should be valuable and relevant to your target audience. For example, business travellers may value rewards such as free upgrades and airport transfers. Families may value rewards such as free breakfast and early check-in.
  • Simplicity: Your loyalty programme should be easy to understand and use. Guests should be able to earn and redeem rewards without having to jump through hoops. Your loyalty programme should also be easy for your staff to manage.
  • Personalisation: Your loyalty programme should be personalised to each member’s individual needs and preferences. This will help to make the programme more engaging and rewarding for members. For example, you can personalise your loyalty programme by offering members exclusive rewards based on their booking history and preferences.

LOYALTY ASSISTS CUSTOMER EXPERIENCE

If you own or run an independent hotel, hotel group, holiday cottage group, restaurant, cafe, or hospitality business, you should use an immediate reward membership programme. If you’re looking to build customer loyalty for your business, this is the effective way to reward your guests and customers and keep them coming back for more.

My programme offers your guests and customers instant gratification. They earn and redeem their rewards right away, which is a powerful motivator that keeps them coming back for more.

It’s simple and easy to understand. Your customers will know exactly what they need to do to earn rewards and how to redeem them. 

It’s flexible. Whatever type of hospitality business you own or run, my instant reward membership programme can be adapted to suit you, and you choose the rewards you want to offer.

It will create an emotional connection. When guests and customers earn a reward immediately, they feel a sense of accomplishment and appreciation. This positive experience creates a bond between the customer and the business, which is likely to lead to loyalty faster than other loyalty schemes do.

It offers real-time tracking. Businesses can see how customers are engaging from the moment they register with the programme and make adjustments as needed, which helps them stay on top of customer needs and preferences, which is crucial for building loyalty.

It’s the instant rewards loyalty program, is a superior option for businesses of all sizes, offering a number of advantages that can help businesses increase customer loyalty and drive revenue.

Email me today to BOOK YOUR FREE ZOOM. We can discuss your business, your marketing strategy, and how this instant reward membership programme can be adapted and work for you.

Email: ml@mettelacey.com ∙ Instagram: @mettelaceymarketing

If you’re based in or near Worcestershire, let’s meet for a coffee.

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