Loyalty Programs

You see them everywhere... the rental company, when you're making groceries (going to the grocery as us New Orleanians say), flying , and of course hotels. There are the gold members, diamond members, platinum premiers and the little guys. As we approach 2020, every company out there is doing everything to keep their customers and get them to spend more--- as they should. We all want to increase our revenues  and make our customers even happier. Sometimes I feel it's over the top and excessive but on the other hand I have spent the last few years understanding a lot of the rationale behind it all.

I think the stats are that these loyalty programs can generate somewhere around $90,000 over the lifetime of that customer. That's a lot no matter what business you're in. Retention rates, spending each year, word of mouth marketing and so on are all impacted by that one customer or 10 million if you're a really big hotel chain. All of this and your operational capacities go hand in hand in determining how strong your customer relationships are.

When I joined Waldorf Astoria two years ago, the Hilton Travel program offered me a great insight to the benefits behind these loyalty programs. I spend a dollar and I get 10 points. I stay one night and I get bonus points towards free nights. Free wifi, fitness access, resort fees waived are the basic perks of their program. As a team member, I am offered a fast track route in getting Gold status or even Diamond. I see what all those business travelers want: free breakfast, lounge access, more bonus points and so on. And then the interactive app just gets me even more hooked to want to spend more money so that I can have more status and get more perks. Then again, other people legitimately accrue the points for travel with family and friends at the expense of their work travel

Im not bashing these programs. I think theyre great. Perhaps a bit too much in everyday life but in my line of work, they carry substantial weight in the revenue generated in the business. So much of the typical guest is very loyal in their spending. Think about those in your customer base that spend the most money. Why do they do it? What brings them back? Is there a loyalty program? Is there service? Is it the reliability of the product? Is it all of the above? Is it loyalty status?

Until next time...

Service Diversity

It's been a few weeks since I last wrote some thoughts down but TRUST ME.... the thought train has been blazing down the tracks. Two weeks ago I was finishing my time with one company. Last week I was in the beautiful resort town of Cabo San Lucas, Mexico.

The Hilton Los Cabos was a beautiful property right smack on the pacific ocean beach with amazing blue water and tan sand that was so hot and abrasive that I got free pedicures each day. Every morning I started the day with my "boi" Richard Wright (another #hospitalitier and successful hotel general manager) with an amazing pool/beachside breakfast replenishing ourselves from a night of dancing and trying Mexican cocktails. Shortly after, we would throw our swim trunks and Tiger or Bulldog Swag on and hit the pool, beach, and poolside bar. They were right in college... It's not a sprint... it's a marathon. We enjoyed poolside music, iguanas, Pacifico Lights, great pacific seafood, plenty of water, Popsicles, and so on.

One thing that really captivated me each day was one of the poolside attendants. Carlos was our attendant each day. He provided chairs, pool towels, offered water, and other traditional amenities for poolside service that are often found at the major luxury brands. But remember, this was a traditional branded Hilton. What set this hotel apart was the additional service attention. The diversity of services offered by this pool attendant were services I have not seen at those major luxury brands in South Beach, San Diego, Buckhead, DC or beyond (not to say they are unique to Cabo). Carlos polished my sunglasses each day, provided popsicles each day at 3pm, offered cold towels, quick snacks, concierge services, and Spanish lessons to Richard.

My challenge is to other hoteliers, managers, hospitalitiers, and customer service managers is to break out the normal or traditional services of a position. Find other unique services that fall in line or are typically expected services. Or copy services of brands that are typically higher in product service levels.

Until next time...