Hotel & Motel Management - November 5, 2007 - (Page 22)

22 Satisfaction Trends IN THE details Programs provide ROI Detailed behavior data More members means more loyalty Loyalty includes spending H&MM November 5, 2007 | HotelMotel.com www.HotelMotel.com/digital_edition Casino loyalty clubs maintain status asinos are well known for offering handsome program beneﬁts, such as complimentary meals, rooms, shows, shopping discounts, private club access and large loans to active members. But does this sweetening really encourage customer loyalty? Do members of these programs spend more, return to the property and spread the good word? Absolutely. Casinos recognize C By Jonathan Barsky H&MM Columnist By Lenny Nash H&MM Columnist the importance of rewarding their most faithful patrons and are experts at ﬁnding the right enticements to keep the players in the game. Casino loyalty programs typically provide a membership card that is swiped at all transactions (casino games, restaurants, stores, hotel stays). The programs use this transactional data (i.e., what games they play or what type of slot machines they prefer) plus demo- graphics to structure offers. This behavior-tracking technology gives casinos unparalleled customer knowledge and, in turn, the ability to distribute generous beneﬁts while maintaining a proﬁt margin in the customer relationship. Direct mail also is crucial; members of some casino clubs receive more than 150 pieces a year. Based on results from the Market Metrix Hospitality Index for the ﬁrst half of 2007, an analysis was conducted to evaluate the impact of club membership and loyalty to that casino. The results indicate brands with a high membership—where more than 50 percent of guests are club members—have the most loyal customer base. Brands in this category include Harrah’s Casino Hotels, Rio All-Suite Hotel & Casino Las Vegas, Borgata Hotel Casino and Spa and Fitzgeralds Casino & Hotel. Customer loyalty fell sharply among brands with fewer members enrolled in their programs. Brands in this category include Aladdin Resort and Casino (now Planet Hollywood Resort & Casino), Excalibur Hotel and Casino, and Circus Circus Las Vegas Hotel and Casino. Members of these programs not only are more likely to return and recommend the casino, they also are willing to spend more. Among casinos where membership is high, price premium (additional amount guests are willing to pay for a room) is nearly three times the amount compared with brands with fewer guests enrolled in their programs. Other industry segments can learn from the success of casino loyalty programs. Effective programs deliver more than cash rebates and comps, they deliver service and amenities that elicit critical emotions (e.g., pampered, entertained) and create behaviors that produce strong customer loyalty for casinos and casino hotels. hmm@questex.com Jonathan Barsky and Lenny Nash work for Market Metrix LLC (MarketMetrix.com), a ﬁrm that provides customer and employee programs for the hospitality industry. For more information, call (800) 239-7515. CIRCLE NO. 103 http://HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.bpampmfranchise.com http://www.bpampmfranchise.com http://www.arcoampmfranchise.com http://www.marketmetrix.com

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Hotel & Motel Management - November 5, 2007 Contents M&A Pace Slowing After Early Boom LodgeWorks Jumps Into Upscale Game Accor Reorganizes Leadership, Structure Perspective At Your Risk Travel Trends Sales Clinic On Finance Family Business Matters Cornell Insights Franchise Law Training Trends Satisfaction Trends Management Trends Events Guest Column Trends & Stats GM Survey Historic Property Conversions Offer Appeal for All Extended-Stay Brands Survey Green is the Word at IH/M&R Show Transactions Restaurant POS Handhelds Keep Managers Alerted Rising Costs Confront Midwest Builders Business Travelers: Breakfast Still an Important Perk IH/M&RS Product Preview Vacation Ownership Projects to Grow in U.S., Abroad Awards Training Programs Jump to Front Lines Refrigeration: Before You Break It, Fix It Lighting Enhances Property People Supplier News Best Western Aims High with Atria Vantage Makes Global Plans Sierra Moves Forward with New Name, High Expectations Maintenance Doctor Social Marketing Makes Way into Hotel Industry People Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - November 5, 2007

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