Indeed, loyalty programs have grown exponentially in Nigeria. A hotel’s loyalty program works in very much the same way as frequent flyer miles work in the airline industry; Guests accumulate free awards when they make repeated purchases with a hotel. Typically a hotel loyalty program will offer guests (depending on the amount of points they have earned) value-added benefits such as free room upgrades, early check-in and late check-out, free spa treatments and guaranteed room availability. With these programs, you get exceptional benefits, fantastic savings and exclusive privileges no matter which of their hotels you choose to stay in across the country.
Traveling today is an entirely different experience, mostly organized through a smartphone. I'm not sure how I'd get from point A to point B without mine. Loyalty programs, a key element of the travel experience for seasoned travelers, aren't left out of this need for digital elements. Here are six ways loyalty programs offered by hotels in Nigeria are improving.
Loyalty is going mobile
When travelers aren't taking in their new surroundings, their noses are buried in their phones. From requesting a ride to the airport, booking an airline ticket, getting to the hotel and searching for a good local place to grab dinner once the journey is complete, the mobile experience is huge for most travelers. Loyalty programs are figuring this out, and amplifying apps to help travelers on the go. Starwood's SPG app, the proponent of Sheraton Lagos Hotel, Four Points by Sheraton and Le Méridien, includes enhanced mobile check-in, mobile room alerts and the option for loyalty members to request room upgrades and late check-outs in-app. This is a significant perk for those moments when you've had a rough flight, and all you want to do is head straight to your hotel room. The actual act of travelling isn't the only stage that needs mobile presence. According to Hotels.ng, most of the research and planning surrounding a trip is now done via mobile as opposed to on a desktop.
The Ladder system
One of the major impediments to the success of hotels' loyalty programs in the past was either the lack of desirable rewards or the high level of points needed to earn rewards. One of the most effective ways Nigerian hotels loyalty programs have improved in the last decade is a ladder system, with rewards improving at each step of the way. The ladder system ensures that there are rewards available to all consumers, no matter how frequent their stay or their point level. Of course, as members earn more points, they are able to redeem their points for higher-value rewards, making the ladder system an effective one at incentivizing loyalty. Like in Radisson Blu Anchorage Hotel, the members with the highest number of points are often referred to as "elite members". Overall, elite members of loyalty programs feel more satisfied, are more likely to recommend the hotel to their friends and are even willing to pay more at a hotel where they receive membership points and benefits. Again, by setting up a hotel’s loyalty program as a ladder system, you are offering consumers the ability to redeem for lower value items immediately or save their points to earn more valuable rewards over time.
Flexibility
Another very important factor in determining whether or not a hotel's loyalty program will be successful is the medium in which customers can interact with the program - either to check their point balance and/or redeem rewards. Flexibility ensures that members will be more engaged to participate in a loyalty program over the long-term. The most effective loyalty programs will be available on- and offline, and will offer multiple mediums for obtaining info and redeeming points to ensure that it is quick and easy for each consumer to redeem their points. While the most sought-after rewards vary per program, customers like rewards that are easily redeemable because consumers enjoy instant gratification. Some instantly redeemable rewards used in hotels like Sheraton Abuja Hotel include: offering free rooms with low point requirements, upgrades, promotions and downloadable content (mP3s, movies, e-Books, etc.). By giving consumers the ability to redeem whenever, wherever, using whatever payment method is most convenient to them, you will ensure the long-term success of your property's loyalty program. The Transcorp Hilton Abuja loyalty program allows users to pool their points with up to 10 friends or family members. The program also allows users to put a certain amount of points towards a stay rather than forcing them to pay for the stay entirely in one currency, a great feature for groups who don't have everyone participating in the program.
The Introduction of Points + Pay
By making it easy for customers to redeem their points for low-level rewards, hotels are able to drastically increase participation. This is another very effective way for hotels to increase their redemption rate by offering the consumers the ability to redeem for rewards using a combination of points plus currency. Ideally, the program would allow consumers the flexibility to use as few or as many points as needed, and make up the difference with a naira-value payment. For example, consumers could choose to pay with as few as 1 point with the remainder in cash, or in as little as N1 with the remainder in points.
Digital Rewards
Digital reward contents, such as instantly-downloadable music, movies, video games, eBooks, software, magazines and so on, have become increasingly attractive and effective. This is because the value of a loyalty reward has as much to do with its relevance to consumers as to how easy it is to earn enough points. In much simpler terms, loyalty program members want useful prizes and digital rewards at any easily attainable level. This makes good sense – consumers are increasingly interested in digital rewards, and tend to perceive them as valuable. Gearing a loyalty program more toward relevant, immediately-redeemable digital gifts like free Wi-Fi, eBooks, and downloadable movies shifts the emphasis from long-range point accrual (for a free room night, for instance) to a higher-interaction, incremental redemption process.
Digital-centric loyalty programs align directly with prevailing consumer trends. Digital content consumption is moving from an ownership to an access model, with typically “owned” media types like DVDs on the decline, and access to streaming content on the rise. Providing access to digital content as a reward puts a hotel’s loyalty program squarely at the front of consumer preference and profitability.
Receiving Point and Reward Notifications by Email
To let loyalty program members know how many points they have and how they can use them, hotel brands need a way of notifying them. Some do this with a stand-alone app for rewards management, or through a basic hotel management app. Virtually all of the major hotel software brands have some type of online dashboard that members can access to check points or redeem rewards. Alternatively, many hotel management systems have included customer relationship management features. They have enabled the addition of a customer-facing loyalty page to their hotel’s website to check and redeem points.
There are several hotels in Lagos, Abuja, Port Harcourt, and cities throughout Nigeria that have customer loyalty programs. These include: Nicon Luxury, Intercontinental Lagos Hotel, De Renaissance Hotel and so on. Loyalty has always had a key role in the hospitality industry, but digital elements need to be present to maintain the hospitality industry's relevance. The above loyalty efforts indicate we're moving in a promising direction.
It is reasonable, therefore, to say that hotels in Nigeria are moving in a direction that reduces limitations on reward redemption – a strategy that includes an evolution away from the “50% discount” as the sole reward for loyal behavior, and instead encourages guests with rewards that are attainable from just a single stay. These rewards are redeemable at any time and bring the guest right back to the brand’s site – after he or she has left the property to re-engage with the hotel brand once again.