Improving Customer Acquisition Strategy With A Loyalty Travel Club
Did you know, that a business could save more money by investing in a loyalty program than prospecting for new customers? “Existing [loyal] customers are spending 67% more than new customers” (Source), and “it costs a business 5-25x more to acquire new customers than it does to sell or [create loyalty] to existing ones” (Source).
Ergo, it is imperative to think about a customer correct acquisition strategy or plain and simple: Loyalty begets loyalty. Customer loyalty programs, like a travel club, pay for itself.
A loyalty travel club is by far the most engaging loyalty program to acquire new customers and retain existing ones. “…the loyalty market industry as a whole is growing at a whopping 200% a year” (Source). Traditionally, loyalty programs allow members to earn points on on purchases as long as they pay for a company’s monthly or yearly fee. This is working for some companies, however a loyalty travel club goes beyond points; it offers a range of services that surpass the typical travel experience.
A loyalty travel club is the right mix of everything a new or existing customer wants in travel: Transactional rewards, lifestyle benefits, discounted luxury merchandise, exclusive invites to events, experiential rewards, 24X7 customer support, discounted products and on occasion upgrades. A loyalty travel club program offers initial rewards to new customers because it wants to turn them into returning members. The fact that today’s customers are more ‘loyal to benefits than to brand’ makes a non-monetary reward, like a promotional coupon and discount code the way to go to help new customers join into the program and then retain them.
Strategic partnerships with a plethora of high-end and luxury brands is another important aspect of a loyalty travel club that makes sure to keep the customers coming back all year round. The travel benefits help them while on the go, whereas the lifestyle benefits encourage frequent, short-term purchases while not traveling.
How can you collect data from your travel club member’s purchases and behaviors to build loyalty? As a loyal travel club member is enjoying their user-friendly experience, you as a business, can capture priceless user data based on their experiences. The loyalty travel club program gathers insights into a customer’s behavior and shopping preference, like what they like and what they don’t like. This translates for you a means to customize and up-sale based on triggers, which can recognize the high-spenders and loyal customers and offer them even more rewards and perks in future experiences. This builds more loyalty with your customers and members.