Priority Club Rewards – 25 Years Young
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Transcript of Priority Club Rewards – 25 Years Young
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Priority Club Rewards –
25 Years Young
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Customer Insights ……
LoyaltyI want to be rewarded and recognized for my loyalty.
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1983 ….. A Star is Born
• Priority Club becomes the first points-based hotel loyalty pgm in the world– Initially set up as a promotion: 1Jan83 to 31May84
• The results were off the charts:– Inbound res volume was more than equipment could handle– Largest y/y occupancy increase since 1974; competitors occupancy fell – Average rate nearly 2X industry average
…. but the finances didn’t look so great
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Customer Insights ……
ChoiceI want as much choice
as I can handle.
LoyaltyI want to be rewarded and recognized for my loyalty.
Travel GuiltI want to ease the guilt I feel for being away from
my significant others.
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More Choice: Hotel brands for nearly every type of traveler and overnight stay occasion.
Nearly 4,000 hotels in 100 countries
1998
1983
2004
1991
1997
2003
• Luxury
• Upper Upscale
• Upscale
• Midscale Full Service
• Midscale Limited Service
• Extended Stay Upscale
• Extended Stay Midscale
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Gifts for Guilt: The 1st and largest rewards catalog in the industry.
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Customer Insights ……
ChoiceI want as much choice
as I can handle.
LoyaltyI want to be rewarded and recognized for my loyalty.
UtilityI want my rewards
currency to be as flexible as cash
Travel GuiltI want to ease the guilt I feel for being away from
my significant others.
ControlI want it how I want it,
when I want it, the way I want it. (the iPod effect)
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PCR Personal Shopper Rewards
The 1st (and only) hotel loyalty pgm to allow mbrs to redeem “off the menu” for anything they want.
P E R S O N A L S H O P P E R
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More Control and Utility
The 1st Hotel Loyalty program to offer ….
• No Point Expiration
• Real-Time, Paperless Redemption (no certs) via phone or web
Point Expiration
Reward Certs
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PCR Any Hotel, Anywhere Rewards
The 1st (and only) hotel loyalty pgm to allow mbrs to redeem their points for any hotel in the world
….. even our competitors’.
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Customer Insights ……
ChoiceI want as much choice
as I can handle.
LoyaltyI want to be rewarded and recognized for my loyalty.
UtilityI want my rewards
currency to be as flexible as cash
Travel GuiltI want to ease the guilt I feel for being away from
my significant others.
ControlI want it how I want it,
when I want it, the way I want it. (the iPod effect)
Social Currency and Self-FulfillmentI want experiences that expand my world and give me social status / position.
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Social Currency
Social currency is the “reputation score” an
individual acquires in a particular social network
that credibly reflects their value in that network.
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PCR Experiential Rewards
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PCR Experiential Rewards
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PCR Experiential Rewards
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PCR Experiential Rewards
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Rewards currency trends
Rebate Currency
Monetary Currency
Social Currency
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A History of Firsts ….
• 1983 1st points-based hotel loyalty program in the world
• 1983: 1st hotel loyalty program to provide a global earn / redeem offer
• 1986 1st hotel loyalty program to offer no point expiration
• 1993 1st to offer point redemption opportunities with airlines
• 1996 1st to launch Personal Shopper rewards
• 2000 1st Online rewards redemption catalog
• 2001 1st to offer instant rewards - real-time redemption via phone / internet
• 2002 Re-launches as Priority Club Rewards; double-digit growth for 19 qtrs
• 2004 the world’s largest hotel loyalty program
• 2005 1st to launch Any Hotel, Anywhere reward
• 2005 1st Freddie Award for “Program of the Year”
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Today, things are pretty darn good ….
Program of the Year – Americas 2005, 2006
Best Hotel Rewards Pgm in the World 2005, 2006, 2007
Best Hotel Rewards Program – US 2007
BUSINESSTRAVELER
BEST HOTEL REWARDS PROGAM - US
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So, where to next ??
• DEEPER CUSTOMER RELATIONSHIPSGreater focus on customer intimacy
– Segmentation / mktg automation / CRM– Social Marketing
• ALLIANCESMore / Stronger partnerships to interact with customers on activities that are important to them
• MONETIZING TOUCHPOINTSCreating value from every customer interaction
• IN-HOTEL DELIVERYCreating a better experience on-property
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Multi-Brand & Relationship Marketing
Multi-Brand and Relationship Mktg
Loyalty PgmsCRM &
Multi-Brand MktgAlliances
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Here’s to 25 years of success …..
….. And 25 more ……
Al Groves
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Time for a break …