The right rewards mix encourages both customer engagement and point spend. But increasing loyalty rewards redemption requires a targeted customer segmentation strategy, often going beyond just typical travel rewards offerings.
That starts with understanding your customers.
Know your customers.
Members are more likely to purchase activities that align with their wants, needs and purchase preferences. In fact, of customers who have experienced personalized offers in loyalty programs, 67 percent prefer personalized coupons, 62 percent favor customized offers or promotions and 58 percent enjoy product recommendations.
Companies that offer the content their target demographic wants are more likely to encourage rewards redemption.
Look beyond ‘typical’ travel rewards.
Did you know that 82 percent of online travel purchasers add restaurant reservations always or often?
There’s a lot of value in thinking beyond your typical rewards content. Providing customers with what they want, when they want it, regardless of their loyalty or VIP status, provides an opportunity for your brand to surprise and delight them.
Look beyond traditional travel rewards like hotel rooms and airline tickets. Test out promoting a necessity item like an airport transfer in your rewards mix. While it’s not as sexy as a fancy hotel stay, chances are, your members are going to need to travel from the airport to their hotel or cruise port, and you should be there to help.
Don’t discount non-travelers.
Don’t forget about loyalty rewards members who don’t travel frequently. There’s still opportunity to engage them with rewards and promote activities in their hometown. If you know Lucy flies one or less times per year, promote staycations and nearby activities like show tickets, gift cards or other experiences in her home city.
For non-travelers, offer non-travel activity rewards. Again, look at your customer data. If a segment of your customers doesn’t travel but lives in a metropolitan area, offer enrichment experiences, like a cooking class, exclusive passes or fine dining experiences – they’re prefect for engaging customers (read: increasing card use and point spend) who like to stay closer to home.
We did some of the research for you. While the best way to ensure you’re promoting the right inventory to the right customers is to look at your own data, we have some top-level insights about travel and ancillary purchase patterns.
Connexions Loyalty partnered with Ipsos to learn what online travel purchasers think about add-on products like hotels, rental cars, travel insurances, upgrades and activities. The survey asked questions about time periods consumers prefer to attach travel content and which audiences (demographics) are most likely to do so. To learn key insights about travel purchasers’ behaviors and motivations, download the report today.
Download our latest report – Picking up Profits: Key Consumer Insights to Drive Travel Attachment. The study reveals which demographic groups are most likely to attach certain travel ancillary content to help you get started developing your own customer segmentation and rewards promotion strategy.