Improve Customer Feedback
2. Keep your 1. Get in touch with your
questions brief and consumers
to the point
Customers will only provide comments
Customers can always choose to when something goes wrong or when
respond to feedback inquiries. You can something goes exceptionally well. As
persuade them to do so by making it a result, the organization should train
simple for them. Multiple choice employees to ask customers for
questions are a good choice, but don't feedback directly and incorporate
forget to include some open-ended feedback questions into the purchase
questions as well, as these may elicit process.
useful feedback and suggestions.
3. Inquire the
4. Add color and a appropriate questions
humor
Make sure you ask questions in a way
It may not always be appropriate to that will most likely result in a positive
include color, graphics, or humor in response. "What aspects of our
your feedback questions, but if it product could be improved?" for
can be done, it would be example. Customers can produce
appreciated. It's easier to respond more valuable responses by asking
to fascinating surveys than it is to questions like these.
respond to standard questionnaires.
5. Do it on the internet
Customers can respond to an email or
a link from a web page with only a few
clicks. Furthermore, data collecting
and processing will be much
simplified.
51
CHAPTER 4
CUSTOMER
LOYALTY
PROGRAM
52
Definition Of
Loyalty Program
Companies create loyalty programmer or
systems to reward loyal consumers with
additional incentives.
A loyalty programmer is a technique or
tactic used to keep excellent consumers by
providing them with extra perks such as
freebies, rebates, and coupons.
The goal of a successful loyalty programmer
is to show appreciation for returning
customers and to keep them loyal. This aids
businesses in establishing a loyal customer
base
53
Importance Of
Loyalty Program
1.Loyalty
programs
build
emotional
connections
5.Increased IMPORTANCE 2.Loyalty
Customer OF CUSTOMER helps you
Lifetime reach new
Value (CLV) LOYALTY customers
PROGRAM
4.Improved 3.Loyalty
Customer programs
Engagement
deliver
customer
observations
54
Loyalty Programs
Build Emotional
Connections
Through repetitive activities, a loyalty
programmer can assist create emotional
commitment. A creative approach to the
offerings provided, on the other hand, can
do a lot more. Organizing numerous
third-party promotions, such as
restaurants, theatres, spas, and
merchants, may help build a sense of
community and a "lifestyle" that will help
people connect emotionally with the
brand.
Example, Nike's mobile loyalty
programmer. Members may access
birthday prizes, member-exclusive items
and content, offline event invites, and
online workouts through Nike-branded
applications. Nike's initiative has been a
huge success. According to reports, Nike
Plus members spend four times as much
as non-members.
55
Loyalty Helps
You Reach New
Customers
One of your most effective marketing strategies is
satisfied and loyal consumers. Positive word of
mouth is critical for gaining new clients in the age
of e-commerce and online review websites.
Personal recommendations are trusted by 83
percent of customers more than any other form of
advertising. We can entice and motivate referrals
by rewarding consumers who refer new
customers through a well-designed loyalty
programmer. Referred clients are more loyal,
profitable, and have lower churn rates than non-
referred customers, according to the data.
In a crowded market, loyalty programmers
can also be a unique selling factor in and of
themselves. You can obtain a competitive
advantage with your loyalty offer if you can't
move on price or other differentiating aspects.
This is a product that outperforms free
competitors almost entirely due to a loyalty
programmer focused on lifestyle and
emotionally-triggered messages.
56
Loyalty Programs
Deliver Customer
Observations
The loyalty program should be designed to
provide the most value to both the customer
and the product's brand. When you digitize
your rewards program, you can see real-
time data on how your consumers interact
with it and your business as a whole. You
may use this information to come up with
new and effective ways to improve your
entire loyalty programmer and brand.
Rewards programmers serve as a sort of
market research as well. The digital
feature enables you to experiment with
various incentives, such as recognizing
rewards that appeal to certain client
kinds
CLV - a customer's lifetime value - is an
intriguing illustration of how personalizing
attribution for a purchasing pattern can
influence strategic decision-making. With a
solid CLV estimate in hand, you can consider
undercutting your competitor's price to gain
market share, or inventing a new product
line that will appeal to a specific consumer
segment, regardless of whether or not that
product/service will be profitable
57
Improved Customer
Engagement
Customer involvement is a critical factor
that has a direct impact on brand
longevity, especially over time. A brand
that fails to connect with its target
audience has a low recall value and has
difficulty building a trustworthy brand
image.
Consumer loyalty program are a terrific
method to increase customer
engagement. When customers are
members of a brand's loyalty or rewards
program, they are more receptive to
receiving emails or other marketing
content from the company. The program
itself provides complete client
engagement and aids in the strengthening
of the brand-customer relationship
58
Increased Customer
Lifetime Value (CLV)
A loyalty program has a direct impact on CLV
and boosts the brand-customer relationship's
lifetime significantly. It gives the buyer a
reason to stick with the brand other than the
products and services it offers. Furthermore,
if the loyalty program is interesting and offers
real benefits, it will help to increase the CLV,
resulting in more repeat purchases over time.
59
Reason Of Loyalty
Program
1.Increase 2.Retain, Get
Growth/ and Win Back
Sales Customers
Reasons You
Should
Implement
Customer
Loyalty
Programs 4.More
3.Build Traffic to
Relationships Your Site and
Marketing
60
Increase Growth
/ Sales
A good program can give incentives for
customers to buy and use more items or
services by offering prizes and
recognition. It also raises the likelihood of
them remaining loyal to the brand
As a result, having a loyalty program is a
wonderful approach for a company to
convert more customers, improve sales, and
expand its business. Customers who are
loyal buy more and are often ready to spend
more, resulting in a more consistent cash
flow
61
Retain, Get and
Win Back
Customers
The primary goal of the loyalty program
is to keep current clients. Customers
and businesses can better understand
each other thanks to loyalty programs.
Customers will feel more valued and
important as a result of your efforts.
Furthermore, there is a better probability
of regaining a lost customer who has
signed up for the loyalty program.
Returning clients provide you an advantage
that prospects like you don't have. All
loyalty program data can be used to satisfy
their various needs and provide them with
greater service than ever before.
62
Build
Relationships
Building genuine relationships with
clients and connecting with them on an
emotional level enhances behavioral
loyalty and earnings. Connecting with
clients via a medium they choose, such
as text message or email, aids in
relationship building, as 56 percent of
participants will switch to another
company if the alternative offers
additional ways to communicate with
them
Knowing your consumers' individual
demands will enable you to create
innovative and positive program that will
provide them with the most value. Trust is
an important component that may be
developed through effective customer
service management and problem
resolution.
63
Increased Website
Traffic and
Marketing
Potential customers and buying habits
will increase as you gain a deeper
understanding of your clients through
your loyalty program. This information
and observations can assist you in
lowering the cost of promotion and
advertising, as well as providing you with
better marketing in general. Customers
will purposefully return to your
organization for repeat purchases
because they are already aware of your
exceptional items and customer service.
Some clients may choose the company to
its partners, resulting in increased sales
without the need to Laboure as hard.
Rather than wasting time and money on an
untargeted audience, the data gathered
from your loyalty program saves you time
and money by assisting you in segmenting
and targeting your audience in marketing
and advertising.
64
Types Of Customer
Loyalty Program
Types of customer
loyalty program
Eye Program
Cash Back Program
Referral Program
Paid Programs
Gift Card Program
65
Eye Program
In most businesses, point systems
are the most frequent sort of
client loyalty program. It operates
on the premise that customers will
be more encouraged to spend
more money in order to earn more
points.
Customers gain points every time
they shop or make a purchase in
the store, which they can then use
to obtain benefits such as
discounts, cash vouchers, service
enhancements, gift items, and
more.
The Caltex JOURNEY card, for
example, rewards clients when
they buy gasoline or make any
transaction at any of the partner
businesses.
The benefit of the points program is that
it does more than simply collect points
for consumers; it also helps to motivate
customers to stay committed in the firm
over time and serves as offline
promotion for the company's brand.
66
Example for eye program
Source: google
67
Cash Back
Program
While we used to think of cashback as a credit card rewards
program, it has now grown into a customer loyalty
program. While most businesses have their own cash back
incentive program, cash back as a loyalty program generally
encourages repeat consumers by returning a portion of their
purchase price and allowing them to accumulate money for
future purchases. This assists companies like yours in
retaining consumers while also improving the customer
experience.
The Fave Cash Back program, The higher the rate of return
which rewards users with on their money, the more
Partner Cash Back every time they spend. Customers can
they pay using Favepay, is an only use cashbacks earned at
example of cashback as a merchants that provide
customer loyalty program. cashbacks, unlike other
cashback schemes. This not
only drives higher purchase
values, but it also assures
that your consumers return
to redeem their cash back.
68
Example for cash back program
source: google
69
Refferal
Program
Customer loyalty programs based on referrals rely primarily on
word-of-mouth marketing methods. Through existing
consumers, the program seeks to connect you with new clients.
The way it works is that for every new customer acquired as a
result of a referral, the referring customer receives a discount,
cash back, free gift, or store credit.
Furthermore, referral programs can often assist you in not
just retaining existing clients but also acquiring new ones.
Existing customers are encouraged to redeem their rewards,
and new consumers are more likely to visit your store if it is
suggested by someone they trust.
Referral Candy, a customer loyalty platform that allows
retailers reward and manage consumers under a referral
program automatically, is one of the best instances of this
loyalty program. Its goal is to improve the customer
experience by reducing disturbance in the suggestion process
70
Example for referral program
source: google
71
Paid Program
A side from using prizes to keep
consumers, you can also charge
them to have access to your
premium services, which is how a
paid customer loyalty program
works.
Customers must pay a monthly or
annual fee to register as an
exclusive member and gain access
to special services, discounts,
packages, and other exclusive
products in paid program, also
known as VIP memberships.
This form of client loyalty
program is common in the service
business. ServisHero VIP
membership for house cleaning
services and viu premium
subscription are two good
examples.
72
Example for paid program
source: google
73
Gift Card
Program
Customers have the option to
choose and purchase the value they
desire with the gift card program.
The fact that you would receive a
down payment on every
transaction is intriguing. You
might think of this as an early
investment in your company that
you can use to plan ahead with.
The nicest part about a gift card
program is that it typically
encourages your consumers to
spend more than they normally
would because it is more
rewarding to redeem the entire
amount on one receipt.
The Fave eCard is the best
example of a gift card loyalty
program. The Fave eCard gives
merchants an upfront payment
with every purchase, while
rewarding customers with
attractive cash back rates.
74
Example for gift card program
source: google
75
Pictures shown an example of customer
loyalty
Sources : canva photo
76
CCoonncclluussiioonn
Finally, in order to improve company performance
and revenue growth, every service provider
should apply this customer loyalty program. This
"Customer Service; Customer Loyalty in Tourism
And Hospitality Industry" e-book can support
companies in improving their services to
customers so that customer will return to the
company more often.
77
RReeffeerreenncceess
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February 26). Smart Insights. https://www.smartinsights.com/digital-marketing-
strategy/customer-retention-strategy/5-reasons-customer-loyalty-program/
6 Reasons You Should Implement Customer Loyalty Programs. (2016, June 1).
Omnisend Blog. http://www.omnisend.com/blog/6-reasons-implement-customer-
loyalty-programs/.
7 Rules for Effective Customer Service Communication. (2016, March 30). Vocalcom.
http://www.vocalcom.com/blog/7-rules-for-effective-customer-service-
communication/.
8 Ways to Earn and Build Real Customer Loyalty for Your Business. (2021, February
8). Bplans Blog. https://articles.bplans.com/8-ways-create-real-customer-loyalty/.
Barton, J. (n.d.). Customized Service: What is it, and Should You Offer it? Babelforce –
the No-Code Contact Center Platform. Retrieved November 16, 2021, from https://
www.babelforce.com/blog/cloud-contact-center/customized-service-what-is-it-
and-should-you-offer-it/.
Corporates. (2020, April 29). Importance of customer loyalty programs in the
hospitality industry. Project Guru. https://www.projectguru.in/importance-of-
customer-loyalty-programs-in-the-hospitality-industry/
Customer Loyalty Book PDF Free Download | Identifying Customer Needs PDF. (n.d.).
Www.bizmove.com. Retrieved October 20, 2021, from https://www.bizmove.com/
books/build-customer-loyalty-identify-customer-needs.htm#google_vignette
Customer loyalty in the Travel Industry. (2019, May 1). Vamoos. https://www.
vamoos.com/customer-loyalty-in-the-travel-industry/.
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November 5, 2021, from https://www.favebiz.com/blog/5-different-types-of-
customer-loyalty-programs-that-merchants-need-to-know
Fivestars. (2021, October 27). 5 Ways to Increase Customer Loyalty. Fivestars Insights.
http://blog.fivestars.com/5-ways-to-increase-customer-loyalty/.
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29). Project Guru. https://www.projectguru.in/importance-of-customer-loyalty-
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https://www.business-literacy.com/financial-concepts/revenue-growth/
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www.userlike.com/en/blog/measure-customer-loyalty.
78
SYNOPSIS
"Customer service: Customer loyalty In Tourism
And Hospitality Industry" is a book related to
proper and good customer management.
Customer loyalty is an ongoing positive
relationship between a customer and a business.
It drives repeat purchases of products and
services offered by the company. It aims to gain
lasting customer loyalty for a lifetime. When
customers are satisfied with the service received,
indirectly they will easily give their loyalty in
your company and will come back again.
Every company will face some problems in
providing the best service, which contributes to
the dissatisfaction of their customers. This has a
negative impact on the company in the future in
terms of loss reputation, business, customers
and customer loyalty.
When a problem occurs, the company needs to
solve it well and quickly to win back the hearts of
customers. In this e-book, discuss how to
improve certain skills such as service skills,
communication skills, and upgrade the feedback
system so that it is easy to obtain customer data
and know the types of customers who get the
company's services.