The benefits of visitor loyalty programs
by Jennifer J. Salopek
 A customer loyalty program can be as simple as the punch card your local deli offers, where you can earn a free sandwich after 10 purchases. Most, however, are far more sophisticated; but whatever the details, they’re increasingly popular.
The average American household has signed up for more than 18 loyalty programs, up from 14 programs two years ago, according to research firm Colloquy. Through their loyalty programs, businesses issue more than $48 billion in rewards points and miles annually. The travel and hospitality industry is the second-largest industry in the U.S. in terms of rewards, issuing $17 billion per year.
So is a visitor loyalty program right for your amusement park or attraction? Funworld recently asked Mark Johnson, president and CEO of Loyalty360, the Loyalty Marketers Association, for his perspective.
Why should amusement parks and attractions consider creating visitor loyalty programs?
Loyalty programs recognize and reward customers for engaging with your brand. Loyalty is a fast-growing field because businesses recognize that it’s much more cost-effective to retain and engage former customers than it is to develop new ones.
How have loyalty programs evolved?
S&H Green Stamps were one of the earliest loyalty programs. Betty Crocker put collectible teaspoons in cake mix boxes; consumers would keep buying in order to collect the whole set. American Airlines’ frequent-flyer program ushered in the new era of loyalty programs, and the field really exploded about 10 to 15 years ago. Unfortunately, many of those adopted a “me too” approach rather than conducting the proper analysis on the front end.
Why is analysis crucial to creating a loyalty program?
The best loyalty programs use “voice of the customer” feedback and behavioral analytics to create data-driven approaches to engage consumers for long-term loyalty. The key is to collect actionable data, then determine what behaviors you want to encourage through your loyalty program.
Is that data available to amusement parks and other attractions?
A loyalty program would be the ultimate enhancement to a season pass program. Through season pass sales, attractions will already have a lot of data about visitors, such as payment methods. With a loyalty program, you can get really granular about transactional behavior. For example, if you want to generate more food and beverage sales, you would use the loyalty program to drive that.
What are the critical elements of a well-constructed loyalty program?
A successful program will include three types of rewards: hard benefits, such as freebies and discounts; soft benefits, such as early opening hours or a special character session; and “surprise and delight” benefits—the unexpected stuff that really creates engagement with visitors. On another dimension, the program should be structured to offer short, medium, and “aspirational” rewards, so participants can decide how to use their points.
Does the park or attraction risk giving away too much?
Freebies don’t have to be of huge value. But a good program should provide return on investment. Although there will be upfront costs, you should see an increase in the behaviors that more than pays it back.
Jennifer J. Salopek is a freelance writer in McLean, Virginia. She can be reached at jjsalopek@cox.net.
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