InterContinental Hotels Group has the largest loyalty program in the business, but it realized there was a bigger opportunity here beyond just points and rewards.
IHG’s senior manager of social media, Nick Ayres, and his team looked to this community to launch a new, private online community available only to the most loyal members willing to supply feedback to the community.
In his recent case study, Ayres shared a bunch of results and big ideas from the project:
- Feature guest-generated content. Instead of using stock photography in promotions, the company let community members submit their own photography. If the photo is chosen, the guest receives a framed copy of the promotion, which is also signed by the senior vice president thanking the guest for being such a loyal member of the community.
- Get quick feedback. IHG turned to its private community when it needed feedback on a promotion. The feedback received led IHG to change the offer, which in turn received great results and brought in significant incremental revenue.
- Create new and better products. IHG wanted to develop a new credit card offering for customers, so the company spent about 12 months working with the private community on what the offer structure should look like. The result? This new e-mail marketing campaign delivered an 80% increase in new accounts compared with more traditional strategies.
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I think companies, particularly in the hospitality industry are starting to realize that an 'engagement' program than a 'reward/points' program will have better returns in the long-run. This story reinforces that belief.