Hilton Brand Loyalty Essay Example

prefer companies that show they care about them, which is a crucial aspect of any CRM or loyalty Program. To be successful, a loyalty program needs to exceed repeat purchases and cultivate emotional relationships that link the customer to the brand. This can only be achieved through consistent positive interactions and experiences with the Brand (McCall, Voorhees, & Calantone, 2010).

In order to establish consistent positive interactions and experiences with a brand, it is important to standardize operations throughout the network of properties. This includes procedures, processes, policies, and other overall operations. Maintaining standardized operations ensures that customers can rely on their expectations being met, which fosters loyalty. Therefore, it is recommended that the company implements standardized operations within all properties, including different chains such as Hilton Hotels and Hilton Garden Inn, regardless of management and ownership models.

The increased probability of repeated positive experiences could foster customer loyalty, leading to efficiencies within operations and reduced operating costs. This presents a win-win opportunity for the customer and the company, as increased loyalty results in higher stay frequency and member retention. Research by Reichheld (2001) shows that a 5% increase in customer retention leads to a 75% increase in customer net present value.

The chart provided illustrates the potential financial impact of increased customer retention, specifically in relation to the HHonors members program. It assumes that higher retention rates will lead to a greater number of active members. The chart also details various factors, including the percentage of active members, total number of members, stays and nights per active member, and the average revenue generated per stay.

If HHonors successfully implements this strategy, it would result

in increased revenues, decreased costs, and heightened customer satisfaction and loyalty. Importantly, this would occur without any changes to the HHonors Program itself. It is crucial to recognize that a program or initiative is a temporary component of an organization or brand. Customers do not purchase a program or initiative; instead, they invest in a mutually advantageous relationship or partnership. The organization or brand must foster this connection to cultivate loyalty, rather than merely focusing on retention.