Roiback: “A regular and loyal customer is much more profitable”

Loyalty programs have become indispensable for a good direct sales strategy — as confirmed by the latest findings of Roiback, a specialist in direct sales management.

According to the Mallorcan tech company, loyal customers spend on average 22.4% more than sporadic customers and have longer stays (almost 30%). Year after year, their spending grows, buying 10 times more during their life cycle than a new customer.

Roiback also noted that a repetition rate of 5% can triple the annual growth of a company and raise its profits up to 25% per year.

“A regular and loyal customer is much more profitable”

“To get a new client is increasingly expensive and, for this reason, a regular and loyal customer is much more profitable. But the client is usually not faithful and there is currently a struggle by the OTAs and the large hotel chains to get to him.

“The key issue is to offer direct benefits to loyalty program’s customers that favour direct sales, in comparison with other channels, and then build communication strategies focused on strengthen loyalty and to make the client repeat,” commented Rebeca González, managing director of Roiback.

What loyalty means

According to Roiback, a loyalty program has to be simple, it must add value, satisfy and surprise the consumer and, above all, it has to be personalised for each client.

The company saw that very few medium-sized hotel chains are in the market and almost no independent hotels had this type of program. For that reason, it decided to launch Loyalty Pro.

“A loyalty program within the direct channel”

González explained: “Our main goal with Loyalty Pro is to design a solution that allows to have a loyalty program within the direct channel, offering advantages and benefits to customers. Afterwards, we have incorporated the integration of different CRMs that complement our solution and that allow to continue with the communications and loyalty strategy with the client.”

Furthermore, Roiback underlined the potential offered by loyalty programs when making real reservations through voice searches. Currently, 20% of the searches through mobile devices come through voice controls and it is expected that, by 2020, this percentage will reach 50% in the United States.