TECHNOLOGY & INNOVATION

Lead to Loyalty What retail providers can teach us BY STACEY SUTHERLAND, VICE PRESIDENT OF B2B MARKETING AND COMMUNICATIONS FOR ICE

urning customers into brand It’s no surprise Amazon Prime is the loyalists isn’t easy. And, one premier example of a premium loyalty might argue it is much harder program. Its subscription-based model T for retailers than it is for the eclipsed 100 million members in January timeshare industry to capture and keep 2019 (source: FORTUNE Magazine January market share, with so many choices 17, 2019). Often deemed the Wal-Mart available to consumers in the palm of of ecommerce, Amazon remains a their hands. But, as the timeshare industry central topic in the future of ecommerce works to fight detractors such as exit thanks to their size, popularity and Stacey Sutherland is the vice president of B2B companies and adjust product strategies ongoing innovation. marketing and communications for ICE (International to meet the growing demand for shorter Why does it work? Cruise & Excursions, Inc.), the global leader in travel-based loyalty, reward, and incentive programs term products, there’s something to be that drive increased engagement and strengthen the learned from retailers when it comes • Their program is easy to understand. relationship between brands and their customers. She to garnering customers using premium • They offer various options (shipping has been in the timeshare industry since 1988 loyalty programs. methods and speeds). where she worked at Vistana Resort under Art • Zimand. Stacey went on to form a company which Prime (upgraded) membership comes with provided sales and marketing services to the industry 70% of retail consumers agree their added benefits: music, movies and more. in the 90s and also served as vice president of loyalty is more difficult to maintain corporate branding and communications at Holiday than ever before, while 88% agree Their technology platform keeps track of Inn Club Vacations for more than 14 years retail companies could do more to what you browse and what you buy and earn their long-term loyalty. they continue to entice you with reminders, – Wunderman loyalty study offers and reviews.

34 — Developments 95% of Prime members say they would On the flip side, consumers also want can even use this currency to pay your “definitely” or “probably” renew an emotional connection. And, that form dues and fees. Can you imagine overcom- their memberships. of loyalty often comes in the way ing the maintenance fee objection on the - Consumer Intelligence Research of experiences. Emotional benefits are sales table with this benefit? Partners (CIRP) felt when a loyalty member experiences Credit card companies are leaning a feeling of exclusivity. It’s like the on third party providers who already In any industry today, we must do feeling you would have if you were able have the supplier networks and technology more with less, on the right platform, to skip the long lines at the theme parks, platforms in place to deliver new found at the right time. It is all about timely, and enter the velvet rope section ahead value to their credit card holders. Now relevant offers and providing them of the masses. So, while transactional consumers are more concerned about which in a convenient, easy to access platform benefits make consumers feel smart, program offers the MOST benefits at the with undeniable value. And retailers experiential benefits make them feel best value. And that is where they demon- know how to do it better than anyone. special. It’s the balance between both, strate their brand loyalty. They know they have to capture the that complete the loyalty circle. Many developers have shied away attention of their customers outside from such third-party companies in part of their stores and they have created Engaging and Retaining because they believed these programs premium subscription models that While benefits like instant discounts would compete with their own value are changing the loyalty landscape and or incentives entice customers to sign proposition or erode their share of wallet. delivering them in the palm of their up, the goal is to get them to become In reality, loyalty programs are a value-add consumer’s hands. active members and retain them. as the timeshare value proposition is Premium loyalty programs are no Developers with club and points already impaired by the online travel doubt a powerful loyalty tool. But, products know this all-too-well. Though companies (OTA’s) and their cheap hotel they aren’t about charging customers identifying additional benefits that can rates. However, third party companies, as as much as they are about providing add to your existing product(s) while you may have experienced with your own value through compelling benefits. keeping your customers engaged isn’t credit card loyalty program, offer more And, premium loyalty inherently easy. It’s especially hard for developers than just hotel rooms. provides market separation. These who don’t have a new resort or a new It’s time to take a fresh look at what platforms are adapting constantly to amenity to offer existing customers. a premium loyalty program can do to remain competitive. But, there is a If there is no new story or no new add value. Whether rewarding cash common denominator: they enable offer, there is no new sale which equals back, alternative currencies or straight you to create both a transactional and less engagement and less revenue for discounts—driving continued engagement an emotional connection with your the developer. and a desired behavior has never been best customers. There are only so many organic easier. Apply a premium loyalty platform Transactional benefits make consumers benefits that can come from your to your product and you too can add feel like smart shoppers. These types of existing product. Finding new ones instant value for your members all-the- traditional benefits (i.e.; discounts or is hard to fund, hard to manage and while creating a loyalty program special offers) impact consumers’ behav- hard to implement on your own. on steroids. ioral loyalty and are often the first ones Credit card companies for example, Premium loyalty programs hold the that customers experience from a loyalty have learned how to compete. They key to unlocking sustainable emotional program. They serve as a vital hook in realize their competition is stronger connections and creating customer retaining them as members. than ever as they fight for wallet share. retention. That’s where experiential So, in order to make you feel smart, benefits come in. You don’t have to 67% of consumers say they are motivated they too have created loyalty programs fund the solution, you just have to find to invest in a premium loyalty program if that reward you with some form of the right solution to meet your business it includes instant discounts. They must alternative currency, which in turn objectives. Adjust your strategies to be simple, easily accessible, and give allows you to choose experiences align these transactional and experiential consumers that undeniable feeling of that make you feel special—such as benefits for your members, and your getting a deal. upgraded first class airline tickets. customers will be more excited to - According to the 2019 Premium Loyalty You can use your currency for travel, engage more often, and stick around Study, Clarus Commerce lifestyle and leisure products—and you for the long-term.

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