A loyalty plan is much more than points

Customer preferences evolve rapidly, and commercial strategies must adapt, maintaining freshness to remain convincing.

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Point-based loyalty programs had their moment; large tourism companies (especially airlines) achieved a large market share with their point-based loyalty proposals.

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Times have changed. In the last year, the advance booking window has been considerably reduced, and guests value incentives with more immediate application.

Incentives with immediate application

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A recent Google survey concluded that 37% of users prefer an immediate incentive rather than accumulating points (or miles). Only 9% think long-term.

In fact, the reality is that points represent a financial liability for your hotel. As they are redeemed, it is necessary to update your accounting, greatly complicating operations and making it difficult to maintain the program.

A good promotional strategy with exclusive rates can motivate the traveler much more than accumulating points. Although it may seem contradictory, these promotional strategies allow the hotelier to build future relationships by building loyalty and expanding their network of prescribers (a happy customer is an ambassador for your brand).

In addition, with an immediate incentive we expand our ability to reach more customers who, attracted by the benefits of the program, decide to register. These contacts are very interesting since, even if they have not completed the reservation process, we can automatically and continuously impact them over time, to encourage them to book.

A good commercial structure of promotional policies considerably improves the conversion ratio and therefore increases your database. Each new customer email can generate new sales opportunities. But to get the most out of it, it is necessary to segment.

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Improving segmentation

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You can analyze what type of customer is more likely to book with a specific promotion and build a strategy that encourages the type of guest you prefer at any given time (couples, families, athletes, ...).

You can be very creative in promotions; not everything is a pure discount (free bicycle check-up if they arrive before a certain date, extra-large bed for children if they book a specific type of stay, etc. With the Roiback engine, you can unleash your creativity).

The quality of your database as a gateway to personalization

In this case, quality is better than quantity. The most important thing is the quality of your database and the ability to personalize communications, with the aim of increasing your average ticket, the number of nights per booking, and achieving better repeat rates.  

With Roiback, users who join your loyalty program come from various sources, always with a focus on data verification, either through the registration form with a double opt-in or through the Social Login button with Google or Facebook as a data synchronization source.

It is interesting to use levers such as Wi-Fi or online check-in as additional recruitment tools and thus increase the database with quality contacts.

At Roiback, we have examples of clients who, with a database of fewer than 2,000 users, sold more than €40,000 in reservations in just 3 days thanks to an email marketing campaign.

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Build loyalty among the loyal. Differentiate your most frequent customers.

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With our Loyalty Advance program, you can reward repeat customers in a differentiated way.

With this powerful tool, your loyalty strategy can differentiate between new and repeat customers (who are more likely to book higher categories).

In addition to rewarding your most loyal customers, it also offers you the possibility of generating more revenue with the program, since you can gradually adjust promotions based on the value that each customer brings you.

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Compete with all your weapons

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Applying differentiated rates to members of your loyalty program also allows you to compete "on price", offering a positive disparity in your direct channel without explicitly indicating it.

In addition, our integration with the main metasearch engines allows you to show your best price (applying the loyalty rate), which will help you improve conversion rates by showing a much more competitive rate compared to OTAs.

Remember that OTAs are already building customer loyalty with their loyalty strategies. By activating your program, you can significantly reduce the impact and value of their discounts.

According to Phocuswright's forecasts for the European tourism market 2021-2025, the direct channel will be chosen in 7 out of 10 online bookings.

At Roiback, we help you devise a strategy tailored to your needs.

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