Sunday Times : Rewards & Loyalty 2016 RewardsAndLoyalty2016 | Page 19

[ SNAPSHOTS ] NEWS ABOUT LOYALTY & REWARDS INITIATIVES HOTEL GUESTS WANT MORE BUSINESSES QUICK TO GO THE POKÉMON WAY More than 15 million users downloaded the Pokémon Go app within a week of it launching in July, and some business owners were almost as quick to cash in on the craze. Among the fastest out of the blocks was a café and bar in Reno in Nevada, called The Jungle, which – within days of the launch of the app – offered Pokémon trainers (that’s what the gamers are called) a 15% discount on their purchases if they checked into The Jungle’s Sierra Perks loyalty programme. All that was required to qualify was to show management at the establishment that they were hunting Pokémons at the time of their purchase. The Jungle reported a 30% increase in revenue within a week of making the offer. Free Wi-Fi, premium bedding and complimentary breakfast are no longer enough to excite and motivate loyalty among hotels guests. This is the finding of a J.D. Power study into hotel guest satisfaction, released in July. “Customers have responded well to the enhanced offerings provided by some hotel brands to create value, but as those perks become standard, customers are quick to ask, ‘What have you done for me lately?’” says global travel and hospitality practice lead at J.D. Power, Rick Garlick. “When guests no longer see added value in the quality of amenities they receive, the only option to differentiate a brand truly is to develop a strong service culture that makes guests feel special and appreciated.” The study also found that while satisfaction is higher among members of hotel rewards programmes than nonmembers, younger guests are less likely to be members than older guests – only 39% of guests categorised as millennials belong to a rewards programme, compared with 56% of Generation X-ers and 66% of baby-boomers. “We’re finding that every succeeding generation seems to be less likely to be a member of a hotel rewards programme than the one before,” says Garlick. “As we’ve seen across numerous industries that J.D. Power tracks, younger guests in particular are especially driven by the value proposition, underscoring the importance for hotel brands to make a stronger case for the benefits of loyalty to these travellers.” UBER PARTNERS WITH CARDS TO DRIVE LOYALTY Although the hail-a-ride company does not have a formal global loyalty programme, Uber has been experimenting with techniques for some time. Among these is its VIP loyalty initiative, which is available in select cities to people who have used an Uber more than 100 times, and a recent promotion in Los Angeles (where Uber was launched) where users are offered a free ride for every 15 taken. Uber also partners with credit-card companies to build loyalty. In South Africa, Discovery cardholders get up to 20% cash back on trips with Uber when paying with their Discovery Card. Uber clients with qualifying FNB and RMB Private Bank accounts can earn up to 15% back in eBucks when paying for Uber rides with their qualifying card. R E WA R D S & L O YA LT Y S A 17