Loyalty programs: Study reveals top complaints; spam tops list
What are your biggest complaints about your hotel chain's loyalty program? Is it the amount of spam you receive - or "rewards" that don't really cut it for you?
A study recently commissioned by the Chief Marketing Officer Council gives us a glimpse into how loyalty program members overall (hotels and other categories, including airlines) would answer that question, and I thought it would be interesting to check in with you. Released last month, the study was based on surveys with more than 700 customers who belong to a variety of loyalty programs. The top three complaints:
- Too much spam and junk email (44%)
- Too many conditions and restrictions (38%)
- Rewards that lack real value (37%)
The study comes at a time when the hotel giants are focusing more than ever on their loyalty customers. After all, business is down - and hotel chains are targeting their most loyal customers because they tend to travel more. Remember InterContinental Hotel Group statistics? IHG openly said last fall that its average loyalty club member is twice as profitable as a non-member, and an elite-level member is 12 times as profitable than an average member.
According to the CMO report, loyalty programs of all kinds have an estimated 1.8 billion members, with hotel programs accounting for some 162 million members. That makes hotel loyalty programs (Marriott Rewards; InterContinental's Priority Club Rewards; Hilton HHonors, Starwood's Starwood Preferred Guest; Choice Privileges; etc...) the fourth-biggest category after financial services, airline and specialty retail, according to the report. The average U.S. household is enrolled in 14.1 loyalty and rewards programs, but is only active in 6.2 programs.
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