Case Study: How to Create a Loyalty Program like a Fortune 500 Company
In the bustling world of corporate travel, Stay-N-Sleep recognized the need to elevate its service offerings to cater to a niche yet lucrative segment of the market—corporate travelers. To this end, Stay-N-Sleep partnered with Guidance Grove, a boutique market research agency, to develop a loyalty program that would not only boost sales but also enhance engagement among this demographic.
Persona Identification: “Corporate Cole” Guidance Grove began by identifying the persona central to the loyalty program—dubbed “Corporate Cole.” At 45 years old, with an upper-class income, Cole epitomizes the efficiency and comfort-seeking corporate traveler. His business obligations drive him towards services that offer time efficiency, comfort, and productivity. However, Cole’s pain points were clear: the hassle of last-minute booking changes, inconsistent quality across different cities, and cumbersome expense reporting. These insights were pivotal in shaping the loyalty program’s features.
Competitive Analysis and Idea Validation The market research agency then conducted a competitive analysis, revealing that while competitors offered personalized experiences and tech-driven rewards, they fell short in addressing the need for expedited expense reporting. With this gap in mind, Guidance Grove validated several loyalty program concepts through a series of A/B tests and focus groups, ensuring alignment with Cole’s needs and preferences.
MVP Development and Testing The Minimum Viable Product (MVP) for the loyalty program was meticulously crafted, prioritizing features such as corporate discounts, lodging proximity to meeting locations, high-speed internet access, and auto-populated expense reporting. A pilot program was launched, and feedback was gathered from frequent corporate travelers like Cole. This iterative process allowed for real-time adjustments and fine-tuning of the program.
Marketing Launch Strategy Armed with actionable insights, Guidance Grove devised a targeted marketing launch strategy. The agency identified the most effective channels to reach corporate travelers, such as SMS, Email and industry forums. The messaging was tailored to highlight the program’s unique selling points, addressing Cole’s pain points and driving home the value proposition.
Business Logic and KPIs The business logic for the loyalty program was anchored in fostering long-term engagement. Key performance indicators (KPIs) were established to measure success, including repeat booking rates, enrollment among frequent users, and revenue from loyalty members versus non-loyalty members. A points system incentivized repeat bookings, while partnerships with airlines and local host experiences offered a comprehensive travel experience.
Outcomes The launch of the loyalty program marked a significant milestone for Stay-N-Sleep. Within the first quarter, there was a 31% increase in repeat bookings from corporate travelers, and enrollment among frequent users increased by 50%. The revenue generated from loyalty members outpaced that of non-loyalty members, affirming the program’s efficacy.
Through rigorous and innovative market research, Guidance Grove empowered Stay-N-Sleep to create a loyalty program that resonated deeply with corporate travelers like “Corporate Cole.” The case study demonstrates the agency’s commitment to delivering actionable insights that drive business growth and customer satisfaction.
Disclaimer: The names presented in this case study have been modified to protect intellectual property and identity of clients involved. Outcomes are not intended to guarantee or predict future results. Any resemblance to real persons, living or dead, or actual businesses, is purely coincidental and not intentional. This case study is a creative representation of how market research might inform the development of a loyalty program and should not be construed as a promise of similar success.