Online research released Dec. 6, by Collinson, a global leader in customer benefits and loyalty, has found that just 38 percent of US adults that travel feel rewarded for their loyalty to travel organizations.
Travel companies are failing to personalize the customer experience – with 61 percent of respondents saying they ignore the majority of communications from travel providers because they aren’t relevant or personalized. Moreover, just one third of these consumers (33 percent) say they receive offers or loyalty initiatives that are personalized to their interests or preferences, while 42 percent said they receive offers that they would never use.
These findings support a Collinson commissioned study, conducted by Forrester Consulting, which surveyed decision makers at travel brands with revenues exceeding $300million, revealing that 64 percent of travel companies fail to understand their customers or why they are loyal to their brand.
Despite all the potential data points available for brands to better understand their customers and provide flexible, personalized offers, only 50 percent of organizations say they collect a wide range of customer data and augment it with third-party sources.
Phil Seward, senior vice president of loyalty strategy – Americas at Collinson, said, “Winning customer loyalty has become increasingly challenging for travel brands in today’s fiercely competitive market. With so many companies eager for the attention of potential travelers, customers will have no problem taking their business elsewhere, if they are not feeling truly recognized for their loyalty.
“Travel brands need to take the time to understand what makes their customers tick in order to retain them and attract new ones. Brands need to create programs that feel personal and authentic, that appeal to the customer on both a transactional and emotional level.
“The difficulty for many organizations is that they are not collecting the data to make this possible. To build a clearer picture of customers and their preferences, organizations need to harness data from as many points as possible while using advanced analytics. Then, they can create the personalized customer experience that builds true loyalty.”
