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Analyzing and Improving Your Loyalty Program

Learn how to review your hotel's loyalty program performance, conduct annual summaries, analyze key metrics, and implement improvements to ensure continued success and guest satisfaction.

The last step of a 12-month kickoff program consists of analyzing activities and results. Each step of the program strategy has defined the framework for a lucrative loyalty program, and you have now hopefully established routines to follow in the years to come. 

Summarizing the year

Loyalty is a work in progress, and we recommend the following:

  1. Be conscious of trends and recruitment incentives. Make sure you adapt to your guests´ wishes. 
  2. Ensure that all new employees are given sufficient training and access to guides related to your program.
  3. Keep an eye on and adjust goals (we will explain this in detail in this guide)
  4. Remember to promote your program through digital and physical areas in appropriate situations.
  5. Maintain and update your automatic customer journey, for example when booking URLs are updated, facilities are upgraded or other changes are made.
  6. Stick to your chosen frequency for newsletters. Content should inform about campaigns or other exciting news.
  7. Use "ad-hoc" campaigns in tandem with your routine-based campaigns. 
  8. Analysis is an excellent tool to keep increasing your members´ value. 
 

Analyzing yearly performance

Landing page 3 defined some goals which should be followed up. 

  • Member recruitment
  • Visiting frequency for loyalty members
  • Average transaction sum for loyalty members
  • Feedback and customer reviews 

Rekruttering

Member recruitment

For "Number of new recruitments" we recommended a daily, monthly and yearly goal. After 12 months have passed, it is time to follow up whether this goal was reached.

Goals were met (or exceeded) 

This is cause for celebration. You have done excellent work and contributed to the your hotel´s future relevance. In some cases (depending on integrations), you may see which locations and employees are your top performers and reward them accordingly. 

Goals were not met

If your team has underperformed, we recommend introducing measures to improve over the next 12 months.

Tip:

  • Asses your program´s relevance. Is "What´s in it for me" good enough for your guests?
    • Instant benefits are the strongest means of recruiting.
  • Are your routines regarding training optimized and effective?
    • Training for part-time and season-based employees are important to create continuity. 
  • Do you have more options for promotion?
    • As a minimum, you should have visible advertising at your location(s), promote your program on your website and in appropriate SoMe-posts.

Besøksfrekvens

Visit frequency 

We strongly recommend measuring your guests´ visit frequency. It is useful to compare this to loyalty members´ visit frequency 12 months after activating your loyalty program. 

How to find loyalty members´ visit frequency:
Visit frequency is found in the dashboard. If you have multiple locations, these may be benchmarked against each other to determine which locations are your top performers. Click here to see how you can update your Loyalty+ dashboard.

Goals were met or exceeded

Congratulations! One of your most important goals is increasing visit frequency. This is cause for celebration. 

Goals were not met

In case your members have not increased their visit frequency, measures should be taken. 

Example of measures: 

  • Make "revisit benefits" more attractive.
    • Measures which reward returning visitors (e.g. bonus, tier levels) will increase visit frequency if they are well communicated. 
  • Make "convenience benefits" more relevant. 
    • Benefits which makes it more attractive to stay at your hotel (e.g. late check-out, free room upgrade, guaranteed sea view, free coffee, etc.) make members more likely to book a stay at your hotel. It is extremely important to ensure that members are aware of these benefits.  
  • Assess communication routines
    • It is likely that you have a large database of members. Have you followed the recommendations in "creation of automatic customer journeys", "establish routines for newsletters" and "choose the program´s campaign structure"?
Purchase frequenzy

Snittkjøp

Average purchase

We strongly recommend calculating guests´ average purchase. This is done to compare this amount to average purchase for loyalty members, and assess whether they on average spend more or less. 

Average purchase is found in the Loyalty+ dashboard. If you have multiple locations, these may be benchmarked against each other to determine which locations are your top performers.

Goals were met or exceeded

Excellent! Your guests are using more of your facilities. 

Goals were not met 

Average purchase is often related to available offers. If you have many upsale opportunities, this gives great potential for increasing average purchase. 

Our recommendations: 

  • Do members earn benefits on all your facilities?
    • We recommend including "Spa", "Restaurant" and other facilities in the same program, giving guests more of a reason to use the hotel´s facilities instead of visiting a nearby competitor. 
  • Have you communicated pre-arrival information which includes upsale opportunities?
    • We recommend configuring this as an automated campaign.
  • Have you activated members´ benefits through "my profile"?
    • These are easily activated using the dashboard.
Basket

Snittkjøp

Measuring feedback and customer reviews

Loyalty members are the program´s most precious resource and source of value in the years to come. Ensure that your members are happy with the program in order to stay relevant. Surveys are a great tool to assess whether guests are happy with the program. These can either be sendt to all members or selected groups of members. We recommend the latter, and it is usually a good idea to choose from the most active group(s). The surveys are also an excellent opportunity to receive honest feedback from your loyal guests about their overall satisfaction with your hotel. 

Find the survey here.

The survey can be created using any survey system (e.g Google Forms, Typeform, Microsoft Form etc.) and be distributed to members through the Loyalty+ dashboard.

Quiz
 
The Road Ahead
 

Regardless of whether you have underperformed or overperformed, it's important not to consider the job as complete after the first year. Working with loyalty is an ongoing process, and the loyalty program will add more value the more you utilize it. By actively working on recruiting new members and improving the program's content, you will create more loyal customers and greater value for both the company and the members. Our tips for the road ahead are therefore:

  • Focus on promoting the program, creating automatic guest journeys, establishing newsletter routines, and developing a strong campaign structure as part of your program strategy. These areas offer numerous suggestions for content creation, making it easier to consistently produce and enhance the loyalty program without relying heavily on constant creativity.
  • Once the goals set for the year have been achieved, we recommend setting new goals to maintain the motivation for recruiting new members. This also involves assessing whether the benefits that motivate customers to become members are attractive enough, and making necessary changes to enhance the attractiveness.
  • Integrate the loyalty program into the company's routines. By having documented routines related to loyalty along with the other daily procedures, it becomes easier to follow up, fostering a sense of importance for the work. Additionally, such documented routines could eventually become practices and happen automatically.

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