Aaron’s Introduction In recent years, the hospitality industry in China has experienced tremendous changes with the ups and downs of the real estate Industry, which also Includes the expansion campaign In full swing in a field set off by the series of the world’s leading high-end hotel group. For most of the world’s top hotel group, the rapid growth of the Chinese market profits undoubtedly like a straw to help them flee out of financial crisis.
With this background, hotels in China will face the enormous challenges with huge competition, especially the star hotels. Many hotels have to consider that how to increase the market share and attract the customers from competitors. More solution is that five stars hotels become regards as the development symbol of the cities, so many cities’ governments ignore the reality about f the environment can support the hotel with enough customer source and if there is an everlasting marketing demands about the hospitality.
To win the competition, more and more hotels focus on how to attract the customers to be loyal. With the big pressure of running, the loyalty program becomes the attractive role In the operation of hotels. What Is customer loyalty program? It Is the practice of finding, attracting and retailing customers who regularly purchase from you and refer new clients to you, which Is the definition from Lisa M. Star. (SPA Austin 2009). Loyalty program Is Just an appropriate tool to attract and keep the customers to become the returned customers.
In this way, customers could get more specially experience form service and the hotels could get more loyalty customers to increase the sales revenue. Great customer loyalty is the inexhaustible motive force of the hotel’s development which could bring the unexpected revenue and benefits, reduce the risk of business, enhance the reputation of brand and moreover it could bring a good benefit for employee. Otherwise, the hotels will be break down in the competition with other hotels. Thus It Is necessary to research about the customer loyalty program.
So the purpose of this study Is to Investigate what Is the main factors Influence the customers’ loyalty and provide the suitable ways to solve It. Modern consumer rewards programs first appeared In 1981. On May 1, 1981 American Airlines launched the first full-scale loyalty marketing program of the modern era with the A Advantage frequent flyer program (Philip, 2005). This revolutionary program was the first to reward “frequent fliers” with reward miles that could be accumulated and later redeemed for free travel. Once it launched, American Airlines’ market share rose dramatically.
But good times don’t last long. Other relative companies discovered this new method before long. And each of them launched its own loyalty program separately. In this essay, I am going to talk about the working principle of customer loyalty program, factors impacting customer loyalty, procedures of setting customer loyalty program. Factors that Impact customer loyalty Customer satisfaction Generally speaking, customer satisfaction Is the fundamental for effective service delivery. Customer satisfaction Is the post-consumption evaluative Judgment concerning a product or a service.
The customers will have an expectation just before they will get the performance during or after the consumption experience that is the result. If the consumption experience matches the expectations, customers will satisfied. For a long time, managers think that customer loyalty will grow up with the enhancement of customer satisfaction. However, an investigation conducted by Pain Company showed that 65%-85% customers who were very satisfied with a product will still buy other product. For catering industry, there are about 60%-80% customers stills choose other product in this situation.
It shows that customer satisfy doesn’t work on the loyalty because they still choose others, but they will stop buying it when they lose the tolerant. With the comparison, low competition industry is illogical that people’s choice has a little relationship with their satisfaction, high competition industry are sensitive that people will choose the high satisfaction product and recommend it to their around. Consequently, with the increasing competition in hotel industry, providing service beyond customer expectations will bring in high customer loyalty.
Advisement from others Everyone has a first time to choose a service, with inexperienced choice, many ones prefer to ask suggestions form others around. It will affect their choice with large extent. Hotels fight to make the perfect service to make everyone satisfy but it is impossible. As it is difficult for catering industry to create a principle what can satisfy every customer because everyone is unique, the most importantly is pay best attention on them. This is the professional working attitude to customers which can make them have a feeling be cherished.
One customer not means one repayment, maybe there is a ten times potential customers Just behind this one because she or he will has a chance to recommend the hotel to others. Oppositely, if someone get a bad experience in a hotel, she or he will urge dissuade others to choose it. Advisements come from many parts, such as friend, family, Internet, news, magazine and many other ways. The communicate or affective stimulation It that definitely the whole hearted service brings the good result? Of course it is not. In the catering industry, The concept of customer loyalty involves cognitive and affective processes.
Normally, the cognitive mostly depends on the Truth of Moment, it means the first depression plays an important role in giving customers a good feeling, but more importantly is that the affective appeared between customers and hotels which are created in the process of communication of them. People prefer to choose the hotel which one is familiar with their habit and characteristics, or Just the staffs have more unforgotten talking with him or her. And also many people will have n emotion to prefer to choose a native brand then out coming one when other conditions are same.
This is the impact of affection and it will make a big difference for people’s choice. It will create a very good loyalty. When selling products, salesman should try best to build affective relationship with customers, such as friend relationship, teacher-students relationship, schoolmates, former colleague to explore the potential customers and moreover to strength customer loyalty. How does the customer loyalty program works Many hotels focus on how to build an effectively customers loyalty program.
For a business to thrive, it must keep its present customers, even as it attracts new customers. Two ways to keep a customer base loyal are by offering exceptional internet document literatures, I get the basic information about how does the customer loyalty program work. And to get more industry real measures, I had an interview of Tangle Tannin Hotel and Renaissance Tannin Hotel, with the comparison and conclusion, here I use the Marriott Rewards to show how the loyalty program works What is Marriott Rewards Marriott Rewards is a customer loyalty program offered by Marriott International, Inc.
It is an award-winning frequent traveler program that rewards guests with exclusive membership privileges when they travel, as well as their choice of frequent flyer miles in their preferred airline program, or points toward free vacations (Marriott Rewards program overview). How does the Marriott Rewards works I had a visit to the Renaissance Tannin Hotel and interviewed several employees about this program and then go to the official website to download the gaudiness.
After the interview and the information research of the Marriott official website, the work form is Just like it as follow: Signing up. This is a loyalty program widely used all over the world. It is useful to members with using the Marriott Rewards Card so that enjoy benefits at any brand of Marriott Hotel Company in the world but Ritz-Carlton. And everyone can use the website to check in online, for memberships can get a better enjoy. One better choice is that become a member and enjoy the faster check in speed and better service immediately.
Earning points or frequent flyer miles. Marriott Company signs many airline companies as partners. Customers could earn points in many ways in living in the Marriott hotel. It is easy for customers to earn mints with more than 3,600 hotels and several airlines and other partner programs. Redeeming points. There are more than 250 ways to use the points for members to enjoy the rewards, such as free hotel stays, frequent flyer miles, vacation packages, cruises and more. Membership benefits.
All the members could enjoy benefits include hotel rate discounts, vacation sweepstakes entries and other travel deals, moreover there are many other benefits just like priority check-in, no blackout dates (so guests can go when and where they want), guests’ preferences remembered, dedicated Customer Service line, online serrations + redemption, E-Folio–a feature enabling guests to receive copies of their hotel bills by email after every stay. Upgrade membership. (the highest level) which is Just based on the number of nights stayed or events hold at Marriott hotels each year.
This is a right they get after guests Join in the Marriott Rewards and stay a certain number of nights per year at Marriott hotels, generally speaking more higher the level is, more benefits the members can get. How to improve the customer loyalty program 1 . Evaluate the product and service and make it valuable The first step what should we do is the evaluation of the product and service. Each employee of the hotel should know everything in the hotel very well, and everyone should have a clear realize that if the product is good enough and if the customers’ choice and payment here is worth.
It may help many hotels find out why they lose in the competition, if their product and service is not good enough that worth the payment of customer, they have loose the campaign at the beginning. Moreover, to conduct a product analysis, they should clarify how sales have developed to the current level, and why they do it in that way. They must know the value of the product in the customers’ eyes clearly, and what features contribute its sales. They should also conduct an analysis of the competitors’ products in order to know the position of their own products.
It Just a process to make sure that if the hotel is full with competitiveness and help the hotels to make a right decision about the loyalty program. 2. Ensure the customers know about the loyalty program Once the rewards program starts, let customers know about it with advertisements, in-store fliers and by having employees advertise the loyalty card program to the customers. Many customers give up the choice of the hotel Just because they have no idea about if the hotel could provide a good rewards and future attractiveness. Actually there is good service for them but they don’t know.
This is caused by the less advertisement of the loyalty program which can be avoided easily but often neglected. For example, hotels could play a advertisement video in the lobby, front desk, coffee bar and restaurant with the electronic signs. The video is based on the real customers who get the rewards from the loyalty program. This is a availably way old advertise the loyalty program which doesn’t vulgar or boring and never disturb the rest and meal for customers. 3. Reward customer loyalty timely Customers are the lifeblood of our business.
Take the time to say “thank you for our business”. This is important because the reason we create the loyalty program is to provide the rewards for them to attract them come back. What the customers want is the promise we provide. No pay back will cause the upset and distrust about the hotel, even it rewards too late, because it means nothing if they lose the patient with the hotel’s promise. Hotels should care the customers sensitively to show consideration for their feelings. In decides that hotels should have lots of rewards which could provide to customers continuously.
Such as upgrade free, discounts, thank you cards, a complimentary newsletter, free newspaper or Just make a simple phone call. Hotels can get really be creative with this but the whole idea is to let them know the care and show them the appreciation. Providing extra value also goes a long way when learning how to improve customer loyalty. Continual surprise from hotels is a line to tow the customers’ money to their pocket without protest. . Full use of internet demand of today’s corporate world. In this way, customers could have known about how much rooms left and the price of them.
More and more people have a willing to book a room on Internet because the quickly and efficiently, but when we want to book a room on the Internet, if there is any other ways excepts the official website and the third party website Just like Strip. Answer is no because almost every hotel are included by these two ways without any other method. Microbial is a new network platform people pay widely attention. Sinai microbial is a high-value electricity supplier marketing platform, According to research II-JET data showed a high degree of overlap of the crowd Sinai microbial and online shopping, online shopping promotion of high-value platform.
A coincidence degree Taboo, Sinai and Taboo users of up to 46% of the Sinai microbial users, 46% of people in the same week also visit Taboo. And almost 33% of people at the same time can also access the Sinai microbial. So hotels should do more things to create an ID on the microbial for customers’ room booking. What should they focus on is that how to create a secure atmosphere for the guests trust and selection. First of all, there must be an employee responsible for the management of microbial and reply the fans what they are concerned about, and crate the interaction at any time.
Interactive includes reply to comment, complaint handling, reply the private letter, issued according to the fans interested microbial content and @ fans using different marketing programs for different types of fans. Secondly, try to plunder the customer’s attention with good video and pictures. Everyone must believe that the flowery pictures attract more guests to carefully reading about the product which is more efficient and effective Han 140 words’ describe, learn to use pictures and video enhance customers’ trust.
Moreover, try to publish more guest related contents that guests can get the answer what they want at any time when they use a mobile phone Log in hotel official microbial. Such as weather forecast, the distance from the airport or the train station to the hotel, and the cost of different modes of transport to get there, facilities or public utilities nearby. Finally, the contact information should be published in a prominent position. The humble action can help guests solve a lot of problems, such s asking any information which can’t found in microbiology. Of course, it also can bring other cooperation opportunities such as the Job search.
Microbial become very popular with more and more users, it has evolved into a new brand communication channels and sales channels. Try to attract more customers to be the fans of the microbial and help them build a habit to check the hotels information tersely. This is really a good way to strong the hotels’ loyalty program. 5. Language of love and care In the catering industry, all the business is built on the relationship between peoples. Customers pay money in the hotel to get a unforgotten experience, one of the most important part is the feeling of be respected and cherished what can make them feel warm and full with love.
The oriental are bashful to say love, but it doesn’t means they don’t like to be loved. It is not the requirement said out by customers but very necessary. To give the language of love doesn’t means say love to them, it includes several parts that utterance, motion, expression and many details. First of all, try to smile all the time, it is a symbol to show the severs’ kindness from heart inside and accommodating attitude for them to make them home feeling, even sometimes the professional norm is the foundation of employees’ good performance.
Language of love and care is very helpful to build a good relationship between customer and employee, because service with full emotion could bring back more corresponding return. 6. Prepare a strategy for program defectors A successful loyalty program should be able to complete the program with a plan that can win back the defectors. Defectors are very important for business especially hotels because they can provide a good view to analysis if the products are unavailable for them and if there is some defect need to be ameliorated.
In most businesses, 60 % -80 % of customer defectors say that they were “satisfied” or “very satisfied” on the last satisfaction survey prior to their defection (Richened, 1994). So with the analysis we can get that the main reason push forward their decision is the competitors’ challenges. Sometimes, customers will be happy to try a new product which has a same level with their old choice. Besides, the purchase habit and other modifiable objective reasons also may cause the defectors of customers.
For tools, if they can win back the defectors, they will have more chance to know if they can have an improvement or promotion in any product or service which mostly are the weakness difficult to find out. A proper strategy should be put in the right place to identify the exact reasons and determine how to overcome it. Conclusion Every customer wants to get the unforgotten service and experience, the loyalty program help hotels to attract more customers and meet their variety demands. Loyalty program is a new product but effective with the compare of others programs, so it is necessary for hotels in the operation and expansion.
Many factors make difference on the loyalty program which decides the hotels should do more on build a better loyalty program. Marriott Company provides a model of the industry with the Marriott Rewards. But there are also many parts could be improved, many advisements appeared in the last part of the article which includes 6 suggestions after a long term research. Objectively speaking, all the suggestions need the inspection of the practice and it will last a long time to establish the perfect loyalty program. So this will be a long term project that researched by many hotels and scholars.
