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How small and mid-sized hotels can reap benefits from loyalty programs?

Loyalty programs help hotels, irrespective of their sizes and shapes, to build a stable relationship with their guests and make them avail more services by providing value. If properly planned and executed, loyalty programs help hotels generate revenues in both short and long-term. Many of the hotels, yet, are on the fence. Reluctant to take the decisions when it comes to incorporating a loyalty program for their hotel.

Do you want to incorporate a loyalty program for your hotel? But don’t know where to start and how to start it. We’re here!

In this blog post, we’ve broadly covered the steps right from planning to executing and monitoring the results to reap the desired benefits.

Getting started,

On-boarding a loyalty program requires a great deal of effort and other background work. Before starting it, you need to consider various aspects to devise the right plan of action.

Things to consider,

1. What you want to achieve

2. Segment your guests based on their needs

3. Invest in the right loyalty solution

4. Invent a tiered approach

What you want to achieve

Decide what you want to achieve through this loyalty program. Setting a goal will guide you on the right path. Your goal may be making your regular guests avail more services or making them as a brand ambassador to attract new customers. Or, simply building your guest community.

This helps you in designing the right offers that reap the desired benefits.

Guest Segmentation

Segmenting your regular guests helps you in designing more specific and personalized offers that meet their unique needs. The need for a business traveler is entirely different from a guest who travels for leisure. Therefore, segmentation helps you to build a specific approach for each type of travelers rather than looking as a whole.

Invest in the right loyalty solution

Investing in the right loyalty solution will help you in numerous ways. With this platform, integrated with other guest-facing applications like Hotel Management Software, Point of Sale, etc. you can build a centralized guest repository and keep track of guests’ changing attitudes and behavior. Based on their preferences, you can send specific offer Mailers/SMS to your targeted guests.

Moreover, this system provides you complete & comprehensive analytics of each campaign. Thus, it helps you in identifying the best working campaigns, understanding how guests respond to different campaigns and their selection patterns.

Invent a tiered approach

This phase largely focuses on how to make your regular guests join your loyalty program and how to engage with them. This is where the majority of hotels falls due to the lack of guest engagement. In most cases, this happens because of confusion and frustration guests were facing once they get into the program. Without knowing when and how to redeem their points/offers might make guests walk away or become lapsed.

Remember, making your guests join the loyalty program is not an end at all. The real challenge is making them participate and redeem their points/discounts. And this is where you need to wear your creative hat to generate attractive and yet specific campaign ideas.

Inventing a tiered approach will give you complete guidelines in leading your guests throughout their journey. It helps you visualize the big picture. It gives you a complete knowledge about your guest's common interests and preferences and helps you provide offers that appeal to the particular guest segment. Not only this, it instructs you in what kind of offers you need to give to your guests in accordance with their purchase stage.

Execution & Monitoring

Once you have the right plan and the segmented database of your guest, then you are good to go.

Using a loyalty program software will help you in uploading the database, creating offer templates, and scheduling the personalized mailers/offers. This solution will automatically track the guest behavior pattern, and based on that it will send automated message and reward offers those who avail it.

Measuring campaigns is very crucial, which help you in making changes whenever required and make your campaigns better than ever.