Loyalty programs are created to reward and acknowledge patronage. However, during my travels, with my wife across Dubai, Egypt, Jordan, Lebanon, Turkey and a stopover in Bangkok, I discovered a puzzling reality surrounding these programs. As someone who holds a Platinum Ambassador level membership with a hotel chain, my loyalty was questioned not because of my dedication but due to the fine print in the program’s policy.

Facing Reality

Throughout our journey spanning nine cities, I naturally entrusted our accommodations to the hotel chain I had remained loyal to for years. However, upon arrival at each location, we were informed that we would not be eligible to receive loyalty points for our stay. This was because our booking had been made through a travel agent and not directly with the hotel. This policy loophole resulted in experiences—some hotels acknowledged our status by providing room upgrades and welcome drinks while withholding loyalty points at all locations.

An Incentive After Complaints

After expressing my dissatisfaction, the hotel chain agreed to offer a few points for some of my stays as a concession. This reactive approach left me pondering—had I not raised this issue myself, perhaps my unwavering loyalty would have gone unrecognised.

Understanding the Purpose of Loyalty Programs

The main goal of loyalty programs is to create a sense of belonging and gratitude. They should make the customer experience easier and simpler. So why does booking through an agent, often the best option for complex travel arrangements, disqualify a customer’s loyalty?

The Customers Predicament

What does such a policy mean for customers? Feeling special is what loyalty programs are about. However, that special feeling fades away when faced with technicalities like these. Instead, it leaves behind a sense of disappointment. As a customer myself, I can’t help but question the value this hotel chain truly places on my loyalty.

Reconsidering Loyalty

This experience raises a question—why would I, or any other customer, choose to remain loyal to a brand that seems to prioritise policies over loyalty itself? It’s quite discouraging. It could even push the most devoted patrons towards exploring other options.

Insights for Marketers

As marketers, we can learn much from this experience. The customer journey isn’t about the rewards; it also encompasses the emotional aspect. A loyalty program shouldn’t be a maze of conditions. Rather provide customers with a straightforward path towards appreciation and satisfaction.

Recognising and valuing loyalty, regardless of the method used for making a booking, is important. How we make our bookings should not diminish the significance of our choice to remain loyal to the same brand.

THE TAKE AWAY

The bottom line is this; Do loyalty programs really work? They do. When they are crafted with genuine care for the customer’s well-being and not solely focused on their financial transactions. Marketers must always remember that loyalty is earned through trust and nurtured by acknowledging and appreciating each customer’s journey with the brand. As we navigate the complexities of managing customer relationships, let us ensure that loyalty programs serve as a bridge, rather than a barrier, to cultivating customer loyalty.

HAVE YOUR SAY

• What are your views on loyalty programs?
• What’s more important in a loyalty program: rewards for spending or recognising customer loyalty?
• Have you faced issues with loyalty program benefits due to the fine print? How did it affect your view of the brand?
• How can brands ensure their loyalty programs truly value and appreciate customers beyond policy enforcement?