Today’s hyperconnected customers are glued to their devices. The need for constant connectivity is bringing some major cultural shifts along the way. Customers now expect to get what they want and brands who can offer the best assistance will certainly win.
Attracting and retaining customers is a continuous process but can be made easier thanks to the ever-growing technology and multi-faceted nature of loyalty programs. Last year, the travel industry accounted for direct spending of $2.7 billion a day which is roughly $31,400 a second, according to a report published by the US Travel Association. (Source) Take a look at this infographic generated by the U.S Travel Association to see the full economic impact of the travel industry.
While implementing a loyalty program, retailers put the majority of their emphasis on cultivating current customer loyalty. However, expanding one’s customer base should not be overlooked. Fortunately, the digital age is all about data and marketers can inundate themselves with it. The challenge lies in using valuable data correctly and ultimately meet one’s business objectives.
The future of travel technology looks very promising. New technologies like Artificial Intelligence, virtual reality, and machine learning are revolutionizing the travel industry landscape and loyalty programs are no exception. It’s high time to explore long-term strategies and new distribution models to drive engagement and reinvigorate your travel brand in this intensely evolving travel ecosystem.
Planning and implementing a loyalty program correctly is the key to customer satisfaction and long-term engagement. A loyalty program that inspires greater fidelity in the ranks of its members can effectively boost engagement. A new retail study confirms that customers who feel emotionally connected with the brands have approximately 306% higher lifetime value and will recommend the brand at a much higher rate (71%). (Source)
Implementing an effective loyalty program is the most powerful way of retaining customers considering the ephemeral nature of customer loyalty. The ideology behind a customer loyalty program is simple – encourage repeat purchases and increase revenue. Most travel marketers abide by this basic yet powerful strategy of having an effective loyalty program in place in order to reduce the customer churn and expand their market share consistently.
From booking tickets at the counter to booking with a click, digitization has permeated the travel sector to assist in arranging the perfect vacation from start to end. The technology and innovations in the travel industry within the last decade led to the emergence of global megatrends where apps have become indispensable. Here are 5 megatrends in the travel industry to pay attention to and apply going forward.
As the old lesson goes, it costs more to acquire new customers than to retain old ones. Increasing customer retention by just 5 percent can increase your business profits by 25 to 95%. (Source) So, it makes sense to engage your customers at every touchpoint of their journey for building customer loyalty in a thriving enterprise.
For travel loyalty business to continue in 2019, travel platforms need to understand the motivations and mindsets of travelers across generations. From baby boomers to Generation X, Millennials to Generation Z, each has their own unique relationship with travel. For any travel platform to be able to sell to these demographics, it needs to understand each group’s travel aspirations before effectively serving these travel-smitten generations.
The ability to save up miles through a travel loyalty club is what gets millions of budget-conscious travelers enrolled in them. Many will admit that it is much easier to focus on saving for their next vacation when they receive points or earn miles every time they make a qualifying purchase. Being able to watch what their loyalty is going towards makes joining much more lucrative for a member However, there are still users tempted to join a loyalty club, only to find it fearfully complex. Blackout dates, tight restrictions or inability to understand their standing within the rewards platform may leave users wary of committing.