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9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.© 2013 L.E.K. Consulting LLC. All rights reserved.
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8 Big Reasons Why Loyalty Will Transform the Customer Experience
Dan McKoneL.E.K. Consulting
9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.
Today’s travelers have a revised set of expectations for loyalty programs
o Expect programs to offer them options
o Value personalization and personal recognition
o Want rewards that fit them
o Active users of loyalty programs (in constant pursuit of rewards)
o Expect “hassle-free travel”
o Accustomed to standard offers
o Never given the chance to choose
o Used to “one-size fits all” approach
o Passive users of loyalty program (by-product of when they travel)
Today’s travelers’
expectations
Yesterday’s travelers’
expectations
9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.
Loyalty programs are adapting to a more sophisticated traveler
to provide a better, more personalized customer
experience…
9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.
o Loyalty programs are increasingly integrated with everyday living
o Data analytics help identify chances to customize the guest journey
o Loyalty-data-driven segmentation can better match needs to guests
o Customized optional services can change the guest experience
o Personal recognition drives loyalty among the most valuable members
o Loyalty alliances enhance the reward incentive
o Experiential offerings can drive aspirational behavior in loyalty
o Feedback can be a powerful tool in enhancing a member’s experience
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5
6
7
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1
8 big reasons why loyalty will transform the customer experience
9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.© 2013 L.E.K. Consulting LLC. All rights reserved.Source: Company websites, L.E.K. Analysis
EarningOptions
RedemptionOptions
Hotel Points Airline Miles
Extending the customer experience to new areas, both within
and beyond travel
1 Loyalty programs are increasingly integrated with everyday living
9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.
Guest journey
2 Data analytics help identify chances to customize the guest journey
Trav
elTravel
Off-site activitiesHotel stay
Check-inSettleLobby
Search
Booking
Flight(s)
Airport
Car Rental
Entertainment
Restaurant
Sleep
Shower
Leisu
re
Mee
tings
Rest
aura
nts
Conf
eren
cesRoom
service
Chec
k out
Fitness
Car retu
rn
Flight(s)
Feedback
Airport
Rewards
Elite customer
recognition
Tailored comfort (e.g., luxury pillows)
Preferred food & drink made available
Saved preferences & profile-based suggestions Tailored
loyalty packages
Meals on-the-go offered
Room preferences
known
Recommendations based on prior
trips
9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.
Business traveler segments
Sam
ple
need
s th
roug
hout
the
jour
ney “Remember
my preferences”
“Better room”
“Too rushed to eat“
“Do it for me”
“Better than home”
“Enable my work habits”
“Segment 2” “Segment 3”
Reco
gniti
onPr
oduc
tivity
Food
“Treat me elite”
“Special selections”
“Frictionless leverage”
Target guest need states with well designed
experiences
Higher guest satisfaction and harder-
to-copy offerings
Brand distinctionand true loyalty
Loyalty-based intelligence enables customized “options”, sharpening brands
3 Loyalty-data-driven segmentation can better match needs to guests
“Segment 1”
9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.
Customized optional services can change the guest experience
Guest segment member on a trip
E.g., wasted time, unfulfilled
expectations, etc.
Archetypal guest travel experience
Desired outcome
Poor experience
Delightful surprise
Step in guest journey
Step in guest journey
Optional service
Optional service
2
1
Need states occur during steps in
the guest journey
OR
4
Pain point
9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.
5 Personal recognition drives loyalty among the most valuable members
Recognize elite travelers…
Give them the experience they want based on known preferences and behavior and
make them feel special
Customized travel suggestions
Greet them by name
Personalized benefits and perks
9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.© 2013 L.E.K. Consulting LLC. All rights reserved.Source: The Wall Street Journal, COLLOQUY Loyalty Awards, The Points Guy, company websites
“This enriches the experience for our most valuable travelers, and gives both Delta and Starwood an opportunity to target frequent travelers who aren't already part of our programs, enabling us to capture greater share of the global, high-end traveler…"
Frits van Paasschen, CEO of Starwood
Benefits to mutual members:• Bonus points/miles• Perks reciprocity for elites
6 Loyalty alliances enhance the loyalty reward incentive
9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.© 2013 L.E.K. Consulting LLC. All rights reserved.Source: The Wall Street Journal, COLLOQUY Loyalty Awards, The Points Guy, company websites
Experience Exclusivity
Free events
Hotel room upgrades
Super-elitestatus
Starwood Ambassador
Exclusive convenience
perks
7 Experiential offerings can drive aspirational behavior in loyalty
Free lounge access
Delta Porsche escort
American Airlines Concierge Key
9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.
How would you rate the helpfulness and courtesy of service staff during your room service order?
Excellent Very GoodGoodFairPoorN/A
Incentivize feedback (e.g,
with loyalty points, coupons,
etc.)
Measure customer
experience to uncover specific
issues
Real-time feedback at
different points of journey
React to feedback to make the
experience more enjoyable
8 Feedback can be a powerful tool in enhancing a member’s experience
9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.
Rich intelligence about the journey means the experience can (finally) be personalized!
9th FFP Loyalty Conference 2013
© 2013 L.E.K. Consulting LLC. All rights reserved.© 2013 L.E.K. Consulting LLC. All rights reserved.
Closing slideQuestion and Answers
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