E2A

NOTE: If a question asks for a specific number of items/things, do not provide more than that number. If you are asked to discuss or describe something, you will not get many points for simply providing a list. Responses to questions that ask you to discuss or describe something should be substantive.

Organize your responses to the questions so that someone reading them can clearly identify EACH point that you make, especially when you are asked to discuss or describe more than one thing. For example, if you are asked to discuss three reasons that you took this course, a good approach would be:

Three reasons I took this course are:

(i) Reason 1: List and discuss Reason 1;

(ii) Reason 2: List and discuss Reason 2; and

(iii) Reason 3: List and discuss Reason 3.

That way, you can self-check that you have provided the required number of reasons, and someone reading your work can also clearly identify the three reasons that you have discussed.

Questions

26. Loyalty Programs and Customer Loyalty

Appended to this document is an article entitled Inside the launch of Marriott’s new loyalty program. Read the article and answer the following:

(a) List and discuss three reasons that Marriott International decided to launch this loyalty program; write at least 3 sentences about each reason; include information from the article to support your points; (10 points)

and

(b) You consulted with Marriott International regarding development and implementation of its loyalty program. The company wanted to obtain information on structuring its loyalty program. Discuss four elements of structuring the loyalty program that you addressed with the company. Write at least 3 sentences about each element; include information from the article that reflects the different elements. (15 points).

27. Social Media, Technology, and CRM

(a) List and discuss three factors that might limit companies’ use of social media as a means of developing and maintaining relationships with their customers; write at least 3 sentences about each factor; (10 points)

and

(b) List and discuss four components of a social CRM strategy that you would design for a company of your choosing (you should describe the company at the start of your response). Write at least 3 sentences about each component of the strategy. (15 points)

28. Customer Satisfaction

A concern for many service providers is the extent to which consumers are committed to the service provider. You have been asked by a service provider (identify the service provider in your response) to help it with its assessment of consumer commitment to the service provider.

You are required to:

(a) Discuss for the service provider the meaning of consumer commitment to a service product; and list three reasons that service providers may be interested in consumer commitment to a service provider. Write at least 3 sentences about the concept, and just list the reasons. (12.5 points)

and

(b) Create a questionnaire that you would use in a survey carried out on behalf of this service provider to assess consumer commitment to this service product. Your questionnaire should contain a minimum of 6 questions, not including demographic questions.

Note: The questions should be closed-ended questions and should not be dichotomous. Dichotomous questions are questions that provide two possible response options such as Yes/No; True/False; Maybe/Maybe Not; any question that has only two possible responses.

Inside the launch of Marriott’s new loyalty program

By Molly Fleming 22 Feb 2019

If you are a frequent traveler, you have more than likely stayed at one of Marriott International’s 6,700 hotels around the world.

The company operates 30 brands, including Ritz-Carlton, Sheraton and W Hotels following its mega-merger with Starwood in 2016, spanning 130 countries. But despite its size, Marriott’s global marketing officer, Karin Timpone, remains realistic about where the brands fit into the average travelers’ mindset.

“The interesting thing is even though we’re 30 brands we’re still a relatively small piece of overall what consumers are using in travel because there is so much choice,” she tells Marketing Week.

Marriott is trying to simplify that choice by bringing its brands together under one loyalty program, Marriott Bonvoy. The aim is to create a cohesive story for travelers, optimize rewards and streamline consumer choice.

The program, which includes a new app, offers a reward plan for the hotel company’s most loyal customers while also highlighting its offering. For example, it allows users to search by location rather than brand so it can showcase all the options across its portfolio.

The umbrella program has been in the works since the merger with Starwood. A huge piece of work, it brings together Ritz-Carlton Rewards, Marriott Rewards and the Starwood Preferred Guest scheme and was quietly rolled out last August without a name.

It hasn’t all been plain sailing. Trying to manage expectations of a huge range of travelers and combine separate schemes into one program hasn’t been without critics. While Marriott claims that on average people will receive 20% more points under the new scheme than the old one, there are some, particularly on SPG, who lost out.

There was also a high-profile data breach that impacted 383 million customer records in late 2018.

There have also been some raised eyebrows over the name, which was revealed earlier this month as Marriott Bonvoy. It takes inspiration from the French phrase ‘bon voyage’, while Timpone says it also evolves the program beyond simply accruing points and is a “sign of a broader travel program focused on experiences.”

Putting experiences first

That shift away from product and towards experiences is one that can be seen across the travel landscape, and brands more generally. In travel, people no longer just want a comfy bed to rest their head, they also want to explore new places and try new things.

“There is an overall move to have life experiences versus stuff,” says Timpone. 

That means Marriott Bonvoy doesn’t simply focus on offering discounted rooms or offers such as get the 10th night free. A new ‘Moments’ feature offers Marriott’s most loyal customers a range of 120,000 experiences across 1,000 destinations globally, ranging from local tours to the chance to attend the Oscars. To do that, it has deals with a huge scope of partnerships, including Universal Music Group and the NFL.

The most recent addition is a multi-year partnership with Manchester United. It gives Bonvoy’s 120 million members exclusive opportunities to bid for football experiences, such as the chance to become the stadium announcer or kit manager for the day.

The hotel chain also works with credit card partners JP Morgan Chase for Visa and American Express. This offers card holders the ability to earn points whenever they use their cards – although they earn more for spending at Marriott hotels.

To ensure the experiences are relevant, Marriott has dedicated social listening teams in locations that span the US, as well as in key cities such as London, Dubai and Hong Kong.

Promoting the loyalty program

This focus on experiences is at the center of Marriott Bonvoy’s first multi-million-dollar global media campaign. The campaign will run across TV and cinema, as well as in Marriott’s various original content channels including its dedicated travel magazine Marriott Bonvoy Traveler and on hotel websites.

The 60-second TV spot sees travelers using the term ‘bonvoy’ in a variety of situations including while swimming, doing yoga, commenting on a good meal and playing chess. At the end of the spot, a voiceover says: “Discover the new language of travel”.

It has the tag line “Rewards Reimagined” and was created by Marriott’s internal team, although it did work with agency Observatory Marketing.