Marketing Challenge: At What Price Loyalty?

Share this content:
At What Price Loyalty?
At What Price Loyalty?

Haven Hotel Group's customer loyalty program had become expensive and unwieldy. Worse, it lacked much differentiation from competitors' programs. Ramona Daly, the company's newly hired director of loyalty marketing, was charged with overhauling the outdated program.

Daly and her team conducted extensive research on what the hotelier's customers liked and didn't like about the program. They created a plan that eliminated some perks but added others, changed how many points customers would accrue for points-earning actions, and updated the required number of points per redemption. Then they ran the numbers to ensure that the program would be cost effective and, well, effective in general at attracting and retaining customers.

After hosting several customer focus groups, Daly and her team made a few minor tweaks to the program and then were set to roll it out. After all, feedback on the program updates was generally positive.

Then the unexpected happened: A few vocal customers who hadn't been involved in the surveys or focus groups took to social media to voice loudly and broadly their extreme displeasure with the new program. The press was all over the kerfuffle.

Daly's boss expected her to be the voice of the company to these disgruntled customers and to the press. She needed to take swift action. Switching back to the old program wasn't an option—and besides, she refused to be bullied by customers who don't know Haven's business or the inner workings of a loyalty program.

What should Daly do? Tell those customers to buzz off—they're probably unprofitable deal hunters anyway? Ignore the fuss in the hopes that it'll fade away? Or perhaps invite the disgruntled customers in for a meeting to explain the changes and try to win them over?

What would you do?

Click here to see what our readers had to say.

Loading links....

Next Article in Social Media

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here