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  • What is Loyalty?

    Monday, July 25, 2011

    HSMAI President & CEO Bob Gilbert recently discussed the future of loyalty with Rick Garlick, Senior Director of Consulting and Strategic Implementation, Maritz Research. Garlic will deliver a keynote address on the subject at HSMAI's Resort Marketing Strategy Conference, August 30, in Phoenix.

    Highlights of their converstion:

    Gilbert: Customer loyalty and frequency programs are commonly confused as the same. Are they?

    Garlick: Not at all. While there is a segment that has a strong desire to cumulate frequency points, much like George Clooney in the movie 'Up in the Air', not everyone finds the offerings of frequency programs to have the same appeal. Think also about the resort hotel segment. People usually do not visit upscale resorts enough to accumulate frequency points fast enough. In this case, the desire for a personalized offering, recognition, special treatment may be far more appropriate for guests. Think also about what Vegas casinos sometimes do. If they identify a potentially valuable customer, they may offer a nice upgrade to a first time visitor as a means of engendering future loyalty.


    Gilbert: Loyalty for an independent resort is very different that the loyalty goals of a big multinational brand. Do you agree? If so, how does is differ?

    Garlick: In the case of a resort property, the ultimate goal is to create such a memorable experience that guest will tell all of us his/her friends about the wonderful experience, and even better, write a glowing review on a Trip Advisor site. That is a different way of thinking about loyalty from how the big multinational brands think about loyalty.


    Gilbert: How can an independent resort define loyalty or a loyalty program? They can't outspend the big brands.

    Garlick: One time a general manager of an upscale hotel told me a guest complained he didn't offer a points program. He wondered what he should do. I told him he shouldn't worry about it because he's ultimately trying to attract a different type of customer. The goal is to keep in mind the primary values of your customer, as well as what you see to be your unique value proposition. Guest loyalty approaches need to reflect the brand, and what it stands for. People remember things most when using the emotional parts of their brains. That is what the resorts need to influence.


    Gilbert: What else can we expect to hear from and discuss with you in Phoenix, on August 30th?

    Garlick: We have been working with a number of leading neuroscientists to better understand the 'brain science' behind what drives loyal behavior. I'll be bringing a bit of that into my comments as well. Click Here for more on the HSMAI Resort Marketing Strategy Conference, August 30, 2011 at the Royal Palms Resort & Spa.

    Posted in Resort Marketing
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