Enhanced Customer Loyalty.
Enhancing Incremental Revenue through a Behavior Focused Loyalty Program
for a major international hotel group.
Objectives.
To conduct an in-depth analysis of the current promotional campaigns including customer segmentation, campaign copy & member flows, reward structure, and campaign conversion metrics.
To conduct an exhaustive search of academic literature and a comprehensive review of market competitors and industry leaders in customer loyalty across domains and markets to uncover best practices and key behavioral insights regarding loyalty and brand engagement.
To translate research findings and key behavioral insights into campaign design recommendations and templates for email & landing page design, member engagement flows, and promotional offer design.
To design promotional campaigns in collaboration with the Acquisition & Lifecycle Marketing team.
To test designed promotional campaigns across email/landing page and iterate based on performance analytics.
Deliverables.
Behavior Analysis, Industry Analysis, and Literature Review - Findings & Recommendations Readout
Stakeholder Alignment Workshop & Applied Behavior Design Workshop - Enhanced Behavior & Incentive Matrix for Targeted Marketing Campaigns
Select Promotional Campaign Design - Full Campaign Redesign on 6 in-market campaigns.
Loyalty Program Behavioral Requirements Documentation - Detailed Guidelines for ongoing campaign redesign to be leveraged across 40+ existing campaigns and the design for future campaigns.
Campaign Implementation & Testing Program - Detailed Implementation & Testing Plan to compare performance between original campaigns vs. campaigns enhanced with behavioral insights and advanced behavioral architecture.
Key Findings.
Limited Diversity.
Despite industry-leading capabilities to segment audiences to target with specific promotions, the promotions themselves (combination of incentive & rewardable behavior) were severely limited in specificity and diversity.
High Cognitive Burden.
Campaigns carried a high level of cognitive burden (mental effort) for the individual to understand the real value of the campaign and the steps needed to get the incentive.
Missing Motivation.
Behavior architecture was missing key components for driving engagement including systems for Motivation, Prompting, and Simplicity across campaigns.
Design Improvements.
Clear & Simple.
We developed an “Offer Matrix” which expanded the Incentives AND Incentivized Behaviors to drive a broader range of activities leading to incremental revenue and allowed for a more diverse set of promotion opportunities that could be tailored specifically to an individual member.
Value-first Material.
We redesigned select promotional offers to increase simplicity (reduced cognitive burden), enhance motivation (clearly understanding the true value of the promotion and reducing the perceived effort to attain the incentive), and stabilize motivation.
Standardized Systems.
Provided technical guidance on creating standard templates that could pull unique campaign content and imagery that exponentially increased the diversity and specificity of campaign emails without exponentially increasing agency workload.
Looking for more?
Reach out to us and we would be happy to share case studies and references.