Comprehensive, well designed and successful loyalty initiatives are intended to drive interactivity that has been pre-determined to drive value for the hotel. The problem is that while most hotels have loyalty programs, they are not living up to their potential. The Loyalty Traveler Blog reports that on average, only 20 to 40% of program members regularly accrue points toward award redemption. This means hotels are missing the opportunity to encourage at least 60% of their customers to become repeat and loyal customers. And, given the profitability of repeat, loyal customers, this means that hotels are leaving a lot of money on the table.

Building an effective guest loyalty strategy is a three-step process:

   1. Determine your objectives. Know the business outcome you want to create.
   2. Understand how those objectives are in accord with your current and potential customers/guests.
   3. Translate this understanding into a customer-focused strategy that is driven by the initial program design and but continually updated via voice of the customer feedback from your constituents and potential customers.

Following these three key steps requires that hotels move customer loyalty to the center of a business strategy - and not just a tangential strategy. This mindshift is critical to effectively drive a successful customer loyalty ...