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Montreal Airline Information Mega Event. FFP Loyalty Track. Co-presentation - Robin Korman / Kevin Yeow
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The secrets of success in localizing a global loyalty program – a China case study
Robin Korman – SVP, Loyalty Marketing & Strategic Partnerships
Kevin Yeow – General Manager, China
Wyndham Rewards Facts• World’s largest hotel loyalty program
– 11 brands and over 6,500 participating hotels
• Launched in 2004 as TripRewards
• Rebranded as Wyndham Rewards in 2008
• 8 million active members in 20 countries
Program Overview - China• Program launched in China: July 2007
• Largest non-Chinese hotelier – 265 properties (and growing) in 100 Chinese cities
• Brands represented: Wyndham/Wyndham Grand, Ramada, Howard Johnson, Days Inn, Super 8
China Travelers
• Growth of domestic travel is driven by various key segments
• Increasing propensity to trade up to international standard accommodations by growing middle class segment
• Business travel needs differ by type of company ownership
• Less brand knowledge and experience with programs resulting in lower loyalty
Key Domestic Traveler Segments
Groups Road-warrior Middle-Class Leisure
State Owned Enterprises
Mgmt
Multi-NationalCorporations
Mgmt
Entrepreneur
Adapting to the Chinese Member
Language & Culture
Earning & Burn Proposition
Local Promotions
‘’This is China’’ Relevancy
Don’t get ‘lost in translation…’
Language
• Spoken – Putonghua
• Written – Simplified Chinese
• Systems & Operational Impact
Culture
• ‘Face’ & Guanxi
• Visual representation
• Unpredictable service expectations
Dialogue: Communication & Servicing
Language Impact on Enrolment
• Centralized Loyalty System US limited to single-byte languages
• English enrolment an issue for both customers and hotel staff
• Both English and Chinese are required for Int’l/Domestic delivery
• Impact:
Hurdle to local recruitment
Inaccurate member data
High rate of returned mail
Local Systems Solution
Original CN data received Semi-auto translated data Eye-ball Verification/Correction
上海市黄浦区九江路399号华盛
商务大厦12楼1201室
Jiujiang Road, Shanghai Huangpu District No. 399Huasheng Commercial Building, 12th floor Room 1201
Suite 1201, 12th FloorHuasheng Building No. 399 Jiujiang Road Huangpu DistrictShanghai
• Double Byte dual language profiles
• Phonetic auto-conversion from
Chinese (S) to English
• Evolving address/property database
• Reporting & Tracking
• (Free Night Stay, Promotional &
Redemption Management)
• (Database Marketing Capabilities)
Online / Property China Program System Functions
Samples of handwritten addresses
Minimize Return Mail Postage Costs
Appearance Delivery Time
Earn & Burn Strategy
Earn• Partner with established local programs with sizable bases
• Target the right strategic partners, not just those who say ‘yes’
• Leverage partner membership bases & channels effectively
• Localize promotions to create perception of ‘tangibility’
Burn• Complement ‘Free Nights’ as non-China travel is group driven
• Points proposition is still competing with instant gratification
• Low level rewards fit in with the Wyndham Hotel business model and stimulates program participation
China Partner Portfolio
Cash Vouchers
WR Premiums
Branded electronic
items
Earn Burn (non-hotel partners)
China Redemption Items (30)China Airlines (4)
Global Promotion PlatformsDouble Points Stay twice earn
a free night
Language and Visuals adapted to the local market
Local Tactical PromotionsStay & Earn Expo Tickets
Keeping it innovative & relevant for the China market
Stay & Earn A Luxury Hotel Stay
Stay & Earn China Mobile SIM
‘This is China’ – Personal Data
• State based legislation– Non individual
– Content based
• Draft legislation in limbo– Likely to include Opt In/Out
• Data sources – integrity– SPAM is a problem
– Corruption
• Change will happen, but it may be fair or unfair
90percent
Share of Web Users who receive spam e-mails and text messages, as well as unsolicited sales calls,
after entering personal data online
‘This is China’ – Intervention
Control Insulation
Sensitivity Domestic
Non – Free Market Forces
‘This is China’ - Internet Usage
The Key Differences
• IM = Biz Culture
• Music/Video = Copyright IP
• Games = Youth
• Blogs = Democracy
No. 1 activity - 80% of web users
‘This is China’ – Social Networks
• Scale– 400m Netizens
– over 750m mobile subscribers
• Local ‘clone’ platforms
• Lack of copyright protection
• Migration to mobile platforms
YouTube
Wyndham Rewards Localization
Consultancy & Program Planning
Redemption Sourcing
Online Member Acquisition
Core Communication
Partnership Development
Local Promotions & Campaigns
Member Hotline Program Operations
Achievement
July ‘07
Launch of WR in China
August ‘08
Localized Redemption
Options
Feb ‘09
Enhanced Enrolment / FNS Booking
May ‘09
4 Chinese Airline
Partners
Sep ‘09
China Based Service Hotline
2010
Local Tailored
Promotions
A step by step approach
• 100% YOY increase in member growth
• Among the highest active rates of all Wyndham Rewards markets
• Increasing demand for low and medium-value local non-hotel rewards
Tips on entering the China market
• Understand the difference in customer behavior
• Make content as well as language relevant
• Complement centralized infrastructure with local
• Develop effective relationships with your suppliers
• Assume best practices from elsewhere apply
• Think that what works today will work tomorrow
• Try to achieve too many goals at the same time
• Forget that ‘This is China’
Dos
要Yào
Don’ts
不要Bú yào
Thank you
Wyndham Presenter
• As the Senior Vice President of loyalty marketing and strategic partnerships, Robin Korman is responsible for the development and management of the company’s loyalty program, customer loyalty initiatives, all direct-marketing programs and internal and external strategic marketing alliances
• Previously, she was senior vice president and general manager at Chase Card Services where she was responsible for overseeing the company’s multi-billion dollar partner credit card portfolio, including development and repositioning of new and existing products and the creation of new acquisition and growth strategies.
Prior to Chase, Robin spent seven years with Starwood Hotels & Resorts Worldwide, serving first as vice president, global loyalty marketing leader, and later as vice president, brand marketing leader for Aloft Hotels and Element Hotels. In those roles, she was responsible for overseeing Starwood’s Preferred Guest program and later, for developing the positioning and marketing for the global launches of the company’s Aloft® and ElementSM brands.
In addition to her most recent experience, she has also served in executive marketing, communications and public relations roles with General Electric and Citibank
• About Wyndham Hotel GroupWyndham Hotel Group, part of the Wyndham Worldwide family of companies (NYSE: WYN), encompasses more than 7,000 hotels and 590,000 rooms in 66 countries under the hotel brands: Wyndham Hotels and Resorts®, Ramada®, Days Inn®, Super 8®, Wingate by Wyndham®, Baymont Inn & Suites®, Microtel Inns & Suites®, Hawthorn Suites®, Howard Johnson®, Travelodge® and Knights Inn®.
ICLP Presenter
• As General Manager, ICLP China, Kevin has full P&L responsibility for ICLP and other Collinson Group companies in mainland China including Shanghai and Beijing offices
• Kevin is a highly experienced loyalty marketing practitioner with over 16 years experience in the development and implementation of loyalty marketing programmes and CRM initiatives for leading global organisations
• Clients he has helped develop include Cathay Pacific’s Asia Miles, InterContinental Hotels Group’s Priority Club Rewards, Wyndham Hotel’s Wyndham Rewards, Northwest WorldPerks and HP’s Original Rewards programmes where he was instrumental in the launch of both Asia Miles and Priority Club Rewards in the Asia Pacific region and more recently Wyndham Rewards launch in the China market
• He is originally from the United Kingdom has been in Hong Kong since 1994 working for leading direct marketing agencies including Draft FCB and McCann Relationship Marketing before joining ICLP where he has been for the past 14 years
• About ICLP
ICLP is the world's NO 1 specialist loyalty marketing agency. Established in 1987, ICLP is a global, full-service agency that has specialised in loyalty marketing for nearly two decades - it's in our blood. We are recognised worldwide as leading loyalty marketing strategists & thought leaders, and have experience and expertise across a wide variety of sectors.
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