Wyndham Rewards turned in a stunning performance at the 2015 Loyalty360 CX Awards at the Engagement & Experience Expo last month in Dallas, earning Platinum awards in the following categories: Best Brand Messaging and Communication in Customer Experience; Best Employee Engagement; and the 360-Degree Award.
Noah Brodsky, SVP Worldwide Loyalty and Engagement, Wyndham Hotel Group, talked to Loyalty360 about some of the key loyalty program trends, related to the travel space, that he believes will occur in 2016.
Regarding 2016, can you talk about the key loyalty program trends you believe will occur related to the travel industry, and how they will impact customer experience/customer loyalty?
One of the biggest trends that we expect to see in 2016—particularly in the travel space—is that, with the exception of Wyndham Rewards, a number of major loyalty programs will continue to devalue their points and make it increasingly difficult for the average member to earn a program’s best rewards. This is only going to lead to greater frustration for customers who, from our research, we know are already dismayed with how complicated and challenging most programs have become. For our part, Wyndham Rewards is focused on the opposite—we’re looking democratize travel by offering a program that’s simple, generous, and that makes it easy for members earn the reward they want most: A free night.
Can you talk about Loyalty Fatigue a bit, and how you see this trend playing out in 2016?
There’s an incredible over saturation of loyalty programs right now, with the average American home having memberships in 29 different programs. That’s a really high number—especially when you consider that consumers then have to try and keep up with how each program works, what its benefits are, and, of course, the inevitable changes that each program will likely make from year to year. It’s becoming too much and as a result, we think that in 2016 we could start to see consumers begin to cut down on the quantity of their memberships and, instead, begin focusing their efforts on those programs that truly provide real value.
Do you think simplicity is an absolute must-have for any successful travel loyalty program?
Absolutely. People don’t want tricks and that’s a lot of what they’re getting in travel these days. Blackout dates, high mileage requirements, ever changing point redemption levels, the list goes on. In short, it’s a headache and one that we’ve been able to easily solve by getting rid of the tricks and instead focusing on simplicity. You can explain our program in seconds to new members and, what’s more, they’re able to appreciate the value proposition almost instantly.
Why do you think consolidation in the travel industry will force many airlines and hotels to evaluate their respective points programs?
Scale is increasingly important in the travel space, a fact underscored by the countless mergers and acquisitions in both the airline and hotel industries over the last decade. While these activities make it easier for travelers to consolidate their travel spend, they also result in combined loyalty programs that, more often than not, don’t add a ton of value for members. If programs want to compete, they need to constantly be evolving—creating new lines of differentiation while driving increased membership and greater engagement.
What is your prediction for the travel loyalty industry in 2016 as far as customer engagement levels and how, specifically, mobile technology will evolve even more?
Our engagement for Wyndham Rewards is at an all-time high but that’s because we’re actively working to grow and expand it each and every day. Others are surely doing the same, but it definitely doesn’t come easy, nor will it get any easier in 2016. The loyalty space has become increasingly crowded—everyone has a loyalty program, which means that it’s up to the companies that run each program to ensure they’re offering real value to consumers and in turn, creating lasting, loyal customers.
Mobile has been a huge part of the loyalty evolution in recent years—we ourselves just put out our newly updated mobile app—and will no doubt continue to be for the foreseeable future. For us, where we see the real value with mobile down the line is in moving beyond basic account management tasks—checking points, making reservations, finding hotel information—and evolving it to a point where it’s an integrated part of the guest experience, allowing us to directly touch and connect in a way that adds value and meaning to program membership.