Loyalty
How to create an effective loyalty program?
1. Build a customer database
Start by investing in a Property Management System (PMS) that collects real-time information about your guests. This will help you categorize clients and identify your most valuable customers, as well as highlight areas where services might need improvement. Pair this with a CRM-system to engage potential clients who haven’t yet visited.
2. Define your goals
Once you have a clear picture of your regulars, it’s time to outline the objectives of your loyalty program. Consider these questions:
- Are you aiming to attract new clients or keep the ones you have?
- Do you want to fill empty rooms?
- Is increasing the average spend per guest a priority?
- How can you enhance the perceived value of your medical services?
- Will offering discounts encourage clients to spend more?
- What aspects of service and treatment do clients value most?
Different loyalty program variations serve specific needs and come with their own pros and cons. The goal is to find a balance between financial benefits for your resort and appealing rewards for your clients.
3. Choose your program type
Here are two popular loyalty program structures:
- Accumulative bonus program. Clients earn points that can be exchanged for services at the resort. This can be a single-level program where bonuses accumulate regardless of client status, or a multi-level system where higher spending unlocks greater rewards.
- Status system. Clients receive personalized offers or discounts based on how much they spend. As their spending increases, so does their status, leading to more attractive offers.
A combination of an accumulative bonus program with tiered levels is highly effective. For example, Marriott uses a six-level privilege system based on how many days guests stay, offering perks from free breakfast at lower tiers to exclusive benefits at higher levels. A similar strategy can keep revenue within your resort while rewarding loyal customers.
4. Set clear terms and conditions
Create easy-to-understand rules for participation that benefit both customers and your business. The entry point for the loyalty program could simply be the first purchase made by a guest. Consider the following criteria for maintaining membership:
- Visiting the resort at least once every 12 or 24 months
- Spending a minimum amount during their stay
- Booking specific room categories
- Enrolling in certain health programs
Decide on the number of tiers in your program — starting with 2 or 3 is advisable — and determine what actions are required to move up levels. Ensure that rules for earning and using points are simple. A clear exchange rate like «1 point = 1 dollar / dirham / lira» is preferred. Also, explain how long unused points remain valid before expiring.
To effectively manage your loyalty system, robust software is essential. It should track point earnings, update client profiles in real-time, send special offers via email, and allow point-based payments. While manual tracking is possible, it carries risks of errors and misunderstandings that can undermine customer trust — something you’re striving to build through this program.
Jivi includes a «Loyalty» module designed for this purpose, allowing you to set rules for earning and using points while keeping detailed transaction records. Clients can access their profiles online to track their progress within the loyalty program.
Curious about the cost of implementing a system with the «Loyalty» module? It varies based on several factors. Complete our brief questionnaire to find out more.
Bonus offer: complete the questionnaire, and you’ll be able to download a special gift from our team — a checklist for boosting occupancy during low seasons.
6. Measure your success
To evaluate the effectiveness of your loyalty program, keep an eye on several key performance indicators:
- Changes in room occupancy rates
- Trends in average spending per guest
- Utilization rates and profitability of participating services
- Percentage of repeat visits
- Proportion of bonuses redeemed
- Overall customer satisfaction levels
- Changes in profit margins
