Loyco Program Strategy - eBook
Introduction
This eBook is a brief summary of Loyco's Program Strategy. Loyco's Program Strategy has been developed to help owners of loyalty programs get started with their program and create valuable programs for their customers. The strategy is divided into 8 steps to be implemented over the course of one year. Each part should be developed and worked on for a month and a half, ensuring that all steps are completed within a year.
Only customers with loyalty programs provided by Loyco have access to the complete Program Strategy, including design templates and content suggestions for creative material.
Content
- Recruitment incentives for members
- Get to know the program and training
- Map the current situation and set goals
- Promotion of the program
- Creation of automatic guest journeys
- Establish routines for newsletters
- Choose the program's campaign structure
- Analyze results and adjust as necessary
1. Recruitment incentives for members
The first step when establishing a loyalty program is to decide which benefits should be offered to loyal customers, making membership appealing. A loyalty program without members has no impact on either profitability or customer loyalty. These benefits should be aligned with the company's overall strategy and tailored to what your customers truly value, creating a strong incentive for them to become members.
Loyco divides benefits into three categories:
- Instant benefits
- Convenience benefits
- Revisit benefits
1.1. Instant benefits
Instant benefits are intended to be an immediate financial advantage received at the moment when the customer places an order or makes a purchase, making membership appealing due to its cost-effectiveness.
| Examples | Terms | Description |
| 10% Member discount | Applies to purchases through the hotel's own website. | Locked membership price will not be a victim of online travel agency (OTA) price dumping. The OTA has to deal with the lowest non-locked price, and its own channel is therefore the cheapest for guests. |
| $15 Welcome gift card | Applies to purchases over $50. | Gift cards are excellent for creating internal or external cross-selling. |
| Free breakfast | One breakfast per member, only when booking on the hotel's website. | Terms "enforce" that if two people live in the same room, both must become members. |
| Free parking | Applies to one car per member. | The receptionist can issue a manual parking permit, or mark the car number as paid. (external system) |
| Welcome gift | Dependent on availability. | Choose something with low cost and high margins and brand recognition for the hotel, such as Homemade cider, wine, chocolate, local jam etc. |
| Service welcome | Applies from 10pax. | Choose a unique service that the hotel can offer, such as tour guide, historical tour etc. |
| Experience welcome | Applies from 10pax. | Do it yourself or give a discount or VIP treatment from a partner. Cultural experiences, historical experiences. |
1.2. Convenience benefits
Convenience benefits are used to improve the customer or guest experience through extra services or offers that make it easier or better to choose your company. When you choose convenience benefits, the benefits should be of high value for the members and low cost for the company.
| Examples | Terms | Description |
|
Free upgrade of room
|
Depends on availability.
|
Used to reward repeat visits. Members are preferred based on available capacity.
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Early check-in
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Must be booked in advance via reception and depending on availability.
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Used to reward members. Does not promise that members will get it, but promises that members will be prioritized over non-members.
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|
Late check-out
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Must be booked in advance via reception and depending on availability.
|
Used to reward members. Does not promise that members will get it, but promises that members will be prioritized over non-members.
|
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Free extra bed
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Must be booked in advance via reception and depending on availability.
Excluding breakfast.
|
Used in cases where members want an extra bed at the hotel.
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|
Ironing service
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Including up to 3 garments per member. Must be booked 2 days before arrival.
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Can be reserved for VIP members or top tier levels.
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Free parking
|
Applies to one car per member.
|
The receptionist can issue a manual parking permit, or mark the car number as paid. (external system)
|
|
Free breakfast
|
One breakfast per member, only when booking on the hotel's website.
|
Terms "enforce" that if two people live in the same room, both must become members.
|
1.3. Revisit benefits
Revisit benefits are about offering benefits that make it attractive to use the company's services or products again. The most common and simplest is automatic bonus earnings, which can be used for partial payment on return visits.
| Examples | Terms | Description |
|
5% Bonus earning
|
Member of loyalty program. | Customers who are members of the loyalty program receive 5% bonus earnings on orders. |
|
VIP guest benefit
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Benefits for the most loyal members. | Loyal members of the loyalty program receive various benefits. |
|
Membership level
|
Member of loyalty program. | As a member of the loyalty program, you can increase your membership level and receive various benefits in these levels. |
|
$10 Birthday gift card
|
Valid from date of birth and 7 days after. | Used to make return visits attractive on the next trip, since they can get a reduced price with a gift card. |
1.4. Autoinvite
If you use a PMS/POS integration with a Loyco loyalty program, you have access to Autoinvite, which simplifies member recruitment. This function ensures that all new guests receive a text message which explains why they should become members. The message includes a URL which guests may click in order to join your program and verify their profile.
2. Get to know the program and training
The second step in the program strategy is to get to know the program and train the employees. We have guides available that explain how to make loyalty easy and improve the guest experience.
.png?width=1920&height=1080&name=gjestereise2%20(1920%20x%201080%20px).png "Member guide")
3. Map the current situation and set goals
The third step is to establish goals to measure the progress of the loyalty program. We recommend establishing targets related to member recruitment, visit frequency, average purchase and guest reviews. Here we provide direct steps for how these goals can be set in the full version of the program strategy.
4. Promotion of the program
For the fourth step, we provide graphic material to help promote the loyalty program. Here you get access to templates for physical posters in various sizes and formats, as well as SoMe and web graphics that are easily accessible and editable.
5. Creation of automatic guest journeys
The fifth step is about creating an automatic guest journey to improve the guest experience. This can be done based on member profile and behavior to offer relevant communication. In this step, we provide inspiration for content that can be included in an automatic guest journey.
6. Establish routines for newsletters
In step 6, we focus on creating a routine for newsletters to influence the frequency of visits, in that the guests are updated with relevant information. Here we offer many examples of seasonal content and when the various newsletters should be sent out.
7. Choose the program's campaign structure
Step seven is about using campaigns to motivate members through, for example, locked member prices, bonus incentives, member gift cards and exclusive offers. This can stimulate a balanced flow of traffic throughout the year and direct orders. Here we make recommendations for campaign structure and frequency.
8. Analyze results and adjust as necessary
The final step in the Loyco program strategy is to analyze your activities and results, and ensure that established routines are maintained. We provide valuable insights on how to enhance your performance if you haven't achieved your initial goals. We also offer tips for loyalty work after the first 12 months
