Escolar Documentos
Profissional Documentos
Cultura Documentos
Worldwide:
Loyalty Wars
F. Jallat - CFVG - 2011
Teaching Objectives
. To understand the forces that shape a service firms profitability.
. To understand how frequency programs are used to deliver on customer
needs.
. To appreciate how loyalty programs allow the practice of one-to-one
marketing.
. To understand how loyalty programs create incentives for increased
spending.
. To demonstrate how loyalty programs may cover some of the expenses
of building a brand.
. To appreciate how frequency programs track the purchase of a guest
across multiple outlets (B2B2C).
. To appreciate how frequency programs take the ownership of the
customer away from the outlet where the service is purchased and give
it to the owner of the brand (Go Downstream).
TOUR-OPERATORS
FINANCIAL
PARTNERS
II- Partnerships
III- Alliances
OTHER AIRLINES
COMPANIES
AIRLINES COMPANY
IV- Relationship Marketing
TRAVEL AGENCIES / OTHER INTERMEDIARIES
FINAL CUSTOMER
OTHER AIRLINES
COMPANIES
2.
3.
2.
3.
To the Guests
4.
A franchised hotel
Hilton
Hhonors
Compliance
HHC
and HI
Volume discount
Patronage
Guest
Franchise fee
Employer
2.
3.
2.
3.
4.
With full occupancy, they would have sold: (91,060 + 62,900) x 365
= 56.2 million nights (Exhibit 1).
5.
6.
This percentage being just over the 68% occupancy at which fixed
costs are covered, we are intitled to use a gross margin on
incremental revenue of 80%.
2.
There is some support for the number in the finding (page 7) that a
good Yield Management program, which depends critically on
identifying individual customers, can improve revenue by 20%.
3.
4.
5.
We still only deliver 92% of customers who are satisfied () Why not
celebrate? Only 8% are not satisfied. Of those, 2% to 3% want things we
cannot do, or things that, if we did them, would dissatisfy all of the other
customers.
But 5% represent satisfaction that we want. Those 5% are dissatisfied
because of stupid, pathetic defects that are repeating () That 5%
translates into 200,000 dissatisfied customers. That is an army attacking
us- saying that we are not good. If we satisfied this 5%, within three years
wed run at 88% occupancy. What does 88% mean in dollars? Three
hundred million to the bottom line. We are leaving $300 million on the
table because of 5% defects.
2.
2.
3.
To the Guests
1.
2.
3.
4.
To the Employers
2.
3.
4.
Partners pay $18 million to use the program to do their own, and a
bigger program would be an even more effective marketing
vehicle for them.
5.
The data are used to run the Yield Management program and more
data might mean better Yield Management.
2.
3.
4.
Paperless rewards (no need for advance notice from the guest. He
can present points at the time of checkout and they will be accepted
as cash).
3.
4.
What happened?
1.
2.
3.