Making Hospitality Rewards Great Again

Many point systems used by hotels, restaurants, airlines and other industries take too long to earn and come at a high cost.

 

Loyalty and customer rewards programs are a long-established promotional exercise for merchants to incentivise repeat business. It can be a significant tool to get customers to come back and spend. Rewards also go a long way to make customers feel good at the moment and feel appreciated over the long term. Hospitality rewards are a sound relationship development strategy, a great investment for merchants. 

 

The trick, however, is to create and deliver a program that truly incentivises customers to come back and recommend a merchant to their sphere of influence. Some programs miss the mark by setting requirements on the consumer to spend significant sums over many visits before they are able to redeem their points. Some hotel or travel programs, for example, can require a customer to commit to 8, 10 or more bookings before having sufficient points to qualify for a gratitude gift. This can amount to many thousands of dollars of spending before receiving anything in return from the merchant receiving the business. 

 

Consumers are less and less loyal to particular brands and more focused on value for the dollar. The middle class generally want more bang for their buck when they travel, when they book lodging, where they eat and on and on. Getting people to commit to regular spending with one brand is getting harder for merchants. Rather than stay at the same hotel brand 10 times before getting a free room or reward, most people are opting to book cheaper stays with a reasonably similar competitor. Rewards matter far less when a consumer can save at the moment and forgo the long term future gift from a particular merchant.

 

This is true even on smaller purchases, like food and coffee. Buy 7 coffees and get the 8th free is a fair reward and successful marketing strategy for numerous companies. Buy 9 sandwiches and get the 10th free is a fair reward. The trick is to successfully get the consumer to buy those 7 coffees or 9 sandwiches in a faster timeline, to elevate loyalty to the forefront of consumer consciousness on each purchase, or even to motivate consumers to buy those quantities at all. Many rewards plans do nothing to motivate consumers, take years to accumulate or end up expiring altogether. 

 

Some programs are very expensive for the merchant. Infrastructure costs of maintaining and promoting programs for companies is so significant it warrants constant thought and analysis. The manpower and technology to support such programs is a hefty cost which necessitates merchants to rethink how they can attract repeat business more often. Whether to replace or supplement your company's existing system, Cadeau is the answer.  

 

Cadeau empowers merchants to reward their customers with gifts that can be used at the moment when they walk out the door, on their immediate next visit or over the long term. Loyalty rewards that are true incentives for customers to consider their next decision to visit you a no brainer. Rewards should serve to make customers feel appreciated now rather than in hundreds or thousands of dollars from now. Certainly, company's can continue with long term rewards systems, but what we're proposing is to offer gratitude to customers that can be redeemed much sooner. 

 

One thing Cadeau can do is integrate with hotels, airlines, travel agencies, car rental companies and movie theatres to name a few industries. Imagine the impact of gifting customers something immediately at the onset of their booking, or when they leave. For example, luxury hotels can use the Cadeau platform to deliver gift certificates for a complimentary bottle of wine, or dessert at their lobby bar with a booking. At check out, that same hotel can use Cadeau to automatically send their guests a free breakfast or free parking gift certificate that can be redeemed immediately on their next stay. Gift certificates for a rebate or complimentary service upgrade on the next sale are great strategies. Using relatively low-cost items as gifts to customers is a very meaningful and effective way to earn repeat business more often. It can make the difference between booking with a lower-cost competitor and coming back because of the overall experience - although more money - will be head and shoulders above the competition.  

 

Cadeau also offers the opportunity for companies to partner and do cross-marketing. Businesses can use Cadeau to do marketing and sales that benefit both companies. One company can gift a certificate for an item or discount at a partner company and vice-versa thereby exposing their brand to a new group. Gifts can be delivered automatically on our Cadeau platform at check-out or booking times. Customers can also use a promo code offered by merchants to collect the offered gift certificate in the Cadeau app search bar. The tools on the Cadeau app can be used creatively by marketing professionals to supplement, create and even replace rewards programs that may have run their course. 

 

Let us know how you choose to use the platform to incentivize people to choose your brand again. Our agents will also stand by to assist you with creating a rewards plan specific to your brand. And our technical team can work with yours to arrange seamless integrations to automate and reduce the costs of your loyalty rewards program.