Developing a Loyalty Program for Repeat Tourists
Tourism businesses thrive when they turn first-time visitors into repeat customers. Loyalty programs are an excellent way to achieve this, fostering a sense of appreciation and value among tourists. With tourism being a significant contributor to Canada's economy—representing $35 billion in 2023—the importance of retaining tourists cannot be overstated. In this blog, we shed light on how businesses can design loyalty programs that keep their customers coming back.
What are the Benefits of Loyalty Programs
Customer Retention: Loyalty programs encourage repeat visits by offering incentives, such as discounts, free services, or exclusive experiences. For example, businesses that partner with local attractions can offer bundled discounts for future visits.
Increased Spending: Tourists who feel rewarded are likely to spend more. A survey by Bond Brand Loyalty found that 77% of Canadians are more likely to make additional purchases when they are part of a loyalty program.
Enhanced Brand Connection: Loyalty programs foster a deeper emotional connection with the brand, especially when personalized rewards are included. This emotional bond makes customers more likely to recommend the business to friends and family.
Data Insights: Loyalty programs can provide valuable insights into customer preferences, helping businesses tailor offerings to specific demographics and trends.
How to Design an Effective Loyalty Program?
To create a loyalty program that appeals to travellers, consider the following steps:
Understand Your Audience: Determine what motivates your target audience. Tourists may value discounts on local dining, transportation, or unique cultural experiences.
Keep It Simple: A complicated loyalty program can deter participation. Use straightforward systems like points-based rewards or stamp cards to ensure easy engagement.
Collaborate Locally: Partner with other local businesses, such as restaurants, hotels, or attractions, to offer diverse rewards that enhance the tourist experience.
Incorporate Digital Tools: Use apps or digital platforms to track points and rewards. Tools like FiveStars or custom mobile apps make it easier for tourists to manage their rewards.
Offer Exclusive Experiences: Give loyal customers access to unique opportunities, such as private tours or early ticket sales. Exclusive perks create a sense of VIP treatment, encouraging repeat visits.
Measuring Success
To evaluate the effectiveness of your loyalty program, track key performance indicators (KPIs) such as customer retention rates, program enrollment numbers, and average spending per tourist. Regularly updating and improving the program based on feedback and data will ensure long-term success.
Loyalty programs aren’t just about rewards; they’re about building relationships and creating lasting memories. By designing a program that aligns with the values and interests of tourists, businesses can ensure they remain top-of-mind for years to come.
Ready to take your tourism business to the next level? Roamlii can help you design and implement a loyalty program that keeps your customers coming back. Visit roamlii.com/tools or Book a Demo with us today to learn more and get started!
