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... Why is Hilton (and other firms in this and other industries) so focused on “loyalty” and “loyalty programs”? ...
The ultimate objective of a hotel is to maximize the occupation rate, which in a chain like Hilton should be above 68% in order to be break even. ... A loyalty program will be the perfect tool to gather customer preferences and behavior in order to provide value added customized services to the client. ... The loyalty program main objective is to attract and retain customers that will provide repeat business.
The loyalty program is also a very useful tool in day-to-day business. ...
Another asset of the loyalty program is the ability to define a very precise customer segmentation. ...
Increasing loyalty as also a significant influence on the Customer Lifetime Value. ...
In another sense the loyalty concept is also a tool to deceased CHURN (measure of customers leaving company services). Because loyalty programs can provide employees customer data and preferences it can be used to improve services and satisfaction then decreasing reasons to go to competition.
Last advantages of loyalty programs are the significant impacts they can have on the brand image of companies and the user feedback they can provide. Actually, loyalty programs are a great communication tool that uses traditional advertising medias as well as word of mouth. ... Loyalty will be even more useful under environments where cost of attraction is quite important (around $750 per room per year for hotels) and where there is a high demand elasticity. ... What are the costs and benefits of this program for the Hilton, its customers, employees and franchise members?
For the Hilton the most important costs are:
- Technology: the Hitlon has to invest in the set-up of the system (software, hardware and services) in order to launch the program.
Approximate Word count = 1477
Approximate Pages = 5.9
(250 words per page double spaced)
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