Case Study

Delivering Nearly 70% Loyalty Program Renewals Increase, 38% Conversion for Asia Hotel Major

Industries
Travel and Hospitality
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OBJECTIVE

The client, a global luxury hotel chain, turned to HGS for pay-for-performance-based sales service for their loyalty membership programme. Their objective for HGS was renewal increase of existing memberships and acquisition of new customers for the loyalty programme.

OUR SOLUTION

HGS implemented end-to-end lifecycle process management enabling process enhancement.

How We Do It

We ensure engagement and coordination with the client’s customers throughout the year. Added to this customer engagement, HGS took up the initiative and suggested and implemented the process of contacting customers for celebratory life events like their/ immediate family members’ birthdays or anniversaries. The idea was to strengthen and enrich the engagement between the client’s brand and their customers, while personalizing the experience. As a result, we now contact customers on special occasions and offer assistance on bookings for the occasion. As expected, this had a positive impact on the client-customer relationship and enhanced customer satisfaction. Customers express appreciation for the calls and show more interest in loyalty membership renewals. The positive customer sentiment and satisfaction led to a significant increase in membership renewals.

We also call customers who have not used their membership at three-, six-, and nine-month intervals; check for the reason of non-usage; and offer booking assistance, if required. We also give these customers special offers. The process of lifecycle management and club coordination has enhanced customer experience transformation and contributed to CSAT and increased loyalty membership renewals.

Business Result

As a result of our efforts through lifecycle management and special occasion calls, HGS provided a >38% increase in conversion rate for loyalty membership renewals. Against an industry standard of low renewals in the first year, HGS provided a 67% increase in renewals. Additionally, more than 20% of renewals are made with an upgrade in membership and only <2% renewals happened with downgrade in customer membership.