4
GLO
This report identifies 4 key areas that companies with travel loyalty programs should focus on to bridge the mismatch between offering and expectation and benefit from the appeal of travel rewards: the booking experience, sustainability, personalization, and payment technology. The report is based on data from two concurrent surveys conducted in late 2022, one polling over 2,000 American travelers and members of loyalty programs and another of nearly 300 loyalty program professionals.
GLOKey takeaways & GLO take:
- A significant gap in the perception of value and ease of loyalty programs between providers and users – 92% of loyalty providers say their loyalty program is delivering, while only 52% of customers believe their loyalty program is delivering what they value most. Our take: regular independent 3rd party reviews of loyalty programs can improve closing this gap.
- Top goals for loyalty providers* going into 2023 are: increase membership (59%), boost engagement (59%), increase customer lifetime value (40%), increase total spending through the loyalty program (39%), introduce new rewards and earning and redemption options (39%). Our take: loyalty providers lack “ROI per customer” indicators in their analysis of loyalty spending. Ineffective growth of membership and engagement may be decreasing the bottom line of the company.
- Features that would increase customers’ engagement with a loyalty program: deeper discounts (59%), a broader selection of rewards (40%), more exclusive options (31%), non-travel rewards (27%), a better booking experience (25%), more inspiring options (22%). Our take: in the recessionary environment customers focus on capital preservation and programs which offer discounts and the ability to use travel points in everyday spend win.
- 84% of consumers cited user experience-related issues as the most frustrating part of booking travel vs. List of elements that loyalty technology platforms need to improve? Ability to incorporate multiple content and inventory sources (38%), additional features or capabilities not currently offered (35%), point earn and redemption enabled for all products/services (35%), program economics (31%), more flexible/configurable UIX (30%), program management (25%). Our take: significant IT investment is still required to get loyalty providers to the level of expectations of customers.
- Only 37% of customers get personalised recommendations while booking online vs. 81% of Gen Z said they liked personalized ads, compared to 57% of millennials and 43% of baby boomers. Our take: while being embedded in the customers’ daily selection of music (Spotify), movies (Netflix) or food & shopping (delivery services & Amazon), travel loyalty providers have a long way to go to deliver a personalised experience.
