Loyalty Program meaning in hospitality

A loyalty program is a marketing tool used by hospitality businesses to get repeat customers and build long-term relationships. These programs offer rewards, discounts or perks to customers who frequent or buy. Loyalty programs can take many forms, point systems, tiered memberships or exclusive benefits for regulars.

Loyalty programs are valuable in hospitality because they help you retain customers in a competitive market. They make your customers feel appreciated and special, so they choose you over others. These programs also give you valuable data on customer preferences and behaviour so you can tailor your services and marketing. By offering incentives for repeat visits, loyalty programs can increase revenue and build a loyal customer base that will recommend your business to others.

So you’re a restaurant manager and you’re launching a new loyalty program. You decide to use a point system where customers get 1 point for every £10 they spend. After 100 points they get a £20 voucher for their next visit. You also offer exclusive benefits like priority reservations or a free dessert on their birthday. To track this you use a digital system where customers can check their points balance and redeem rewards through a mobile app. You notice regulars are visiting more often to earn points, and you’re seeing an increase in word-of-mouth referrals as customers are sharing their experience with friends and family. This positive feedback confirms the success of your loyalty program.'