The Travel Research Group at Phoenix Marketing International discovered that most people that possess a co-branded credit card display a higher loyalty toward that chain!
August 18, 2004 (Press Release) --
Phoenix Marketing International’s recently released Hotel SCORES™ study examined the usage and appeal of co-branded credit cards among members of hotel frequent guest programs. Among those who do not currently possess a co-branded credit card, approximately 1 in 10 expressed a very strong interest in obtaining a hotel program co-branded credit card in the next six months. Study findings show that while 10% of all hotel frequent guest program members have a co-branded credit card, 80% of those possessing a co-branded program credit card are elite-level members in at least one hotel frequent guest program.
The Hotel SCORES study surveyed nearly 4000 members of hotel frequent guest programs and probed awareness, membership, usage & perceptions regarding more than a dozen programs. According to Greg Diaz, Vice President - Travel Research Group at Phoenix Marketing International “Hotel SCORES was designed to fill a void in the industry knowledge bank by focusing on not just the upscale hotel programs, but also on those programs offered by the moderate and economy lodging segments. In addition, by focusing on airline and auto travelers, Hotel SCORES gives a more complete picture of the perceptions and value of hotel frequent guest programs.”
How are credit card issuers and hotel frequent guest programs missing the target for co-branded credit cards? According to Diaz, they are not efficiently targeting potential credit card subscribers in their direct marketing programs. Diaz believes that the credit card issuers and hotel frequent guest programs need to re-evaluate their list selection criteria for direct mail acquisition programs. “Direct mail acquisition of new members can be expensive… especially if it is not targeted to an audience that will respond positively to an offer. Too often we see examples of expensive ‘mass’ rather that specifically targeted ‘class’ mailings.”
How can credit card issuers and hotel frequent guest programs improve their response rate? The key to improving co-branded card acquisition rates is to understand the perceived value of hotel loyalty programs in conjunction with the target audience for the co-branded credit card. The Hotel SCORES study shows that hotel frequent guest programs engender a level of loyalty to hotels… two-out-of-five frequent guest members claim that programs influence hotel selection most or all of the time. As travel frequency and involvement in a program (measured as preferred program or elite status) increases, the loyalty commitment to the program also increases. In an effort to build on and enhance these loyalty phenomena, the credit card issuers and hotel frequent guest programs should be targeting these loyalists and those on the cusp.
Case in point, Phoenix Marketing International has worked with several of the nation’s largest credit card issuers. In those instances where credit card issuers have tested the Phoenix Marketing International List Optimization modeling service, which incorporates a propensity to purchase variable as well as behavioral, historical, lifestyle, and demographic variables in their list modeling service, we have consistently experienced a lift rate that is two-to-three times higher compared to the credit card issuers standard approach.
The Hotel SCORES study surveyed nearly 4000 members of hotel frequent guest programs and probed awareness, membership, usage & perceptions regarding more than a dozen programs. According to Greg Diaz, Vice President - Travel Research Group at Phoenix Marketing International “Hotel SCORES was designed to fill a void in the industry knowledge bank by focusing on not just the upscale hotel programs, but also on those programs offered by the moderate and economy lodging segments. In addition, by focusing on airline and auto travelers, Hotel SCORES gives a more complete picture of the perceptions and value of hotel frequent guest programs.”
How are credit card issuers and hotel frequent guest programs missing the target for co-branded credit cards? According to Diaz, they are not efficiently targeting potential credit card subscribers in their direct marketing programs. Diaz believes that the credit card issuers and hotel frequent guest programs need to re-evaluate their list selection criteria for direct mail acquisition programs. “Direct mail acquisition of new members can be expensive… especially if it is not targeted to an audience that will respond positively to an offer. Too often we see examples of expensive ‘mass’ rather that specifically targeted ‘class’ mailings.”
How can credit card issuers and hotel frequent guest programs improve their response rate? The key to improving co-branded card acquisition rates is to understand the perceived value of hotel loyalty programs in conjunction with the target audience for the co-branded credit card. The Hotel SCORES study shows that hotel frequent guest programs engender a level of loyalty to hotels… two-out-of-five frequent guest members claim that programs influence hotel selection most or all of the time. As travel frequency and involvement in a program (measured as preferred program or elite status) increases, the loyalty commitment to the program also increases. In an effort to build on and enhance these loyalty phenomena, the credit card issuers and hotel frequent guest programs should be targeting these loyalists and those on the cusp.
Case in point, Phoenix Marketing International has worked with several of the nation’s largest credit card issuers. In those instances where credit card issuers have tested the Phoenix Marketing International List Optimization modeling service, which incorporates a propensity to purchase variable as well as behavioral, historical, lifestyle, and demographic variables in their list modeling service, we have consistently experienced a lift rate that is two-to-three times higher compared to the credit card issuers standard approach.
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