7 Replies Latest reply: May 16, 2014 1:27 PM by pingreeman RSS

Next time you threaten to leave Marriott, this may give you pause for thought

erc Platinum
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Most all of us get aggravated now and then with different aspects of the Rewards program (and occasionally even the hotel service, which fortunately for us diehard loyalists, almost always surpasses the Rewards program efficacy and is excellent), some even to the point of threatening to leave long term relationships with Marriott. Nothing wrong with 'letting your feet do the voting', but anticipating a concerned reaction (beyond the sensible customer relations response of avoiding irritating a loyal customer) is most likely an approach that will only lead to disappointment.

 

Along with the economic rebound in general, the strength of current business travel, and now the return of group travel, (all which has lead to enormous financial success and stock market highs for Marriott) we can add the enormous impact of new markets like China (Marriott itself has added over a million Chinese Reward Members in the past 12 months alone).

 

http://news.marriott.com/2014/05/finding-the-right-way-to-say-ni-hao.html (500 million more guests on their way)

 

So, if it makes you feel better to threaten to "take your business elsewhere", of course feel free to do so; just don't be disappointed or even surprised if Marriott doesn't immediately react, good long term business strategy or not.

(For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

  • Re: Next time you threaten to leave Marriott, this may give you pause for thought
    ks77 Gold 23 Reviews
    Currently Being Moderated

    Well said erc

    (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

  • Re: Next time you threaten to leave Marriott, this may give you pause for thought
    vaboywnder Alumni Steward Platinum 21 Reviews
    Currently Being Moderated

    Welcome Back erc!  We've missed your thought provoking insight! 

    (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

  • Re: Next time you threaten to leave Marriott, this may give you pause for thought
    jerrycoin Alumni Steward Platinum 60 Reviews
    Currently Being Moderated

    erc,

     

    Yes, welcome back, and thanks for sharing this information!

    (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

  • Re: Next time you threaten to leave Marriott, this may give you pause for thought
    shashack Platinum 4 Reviews
    Currently Being Moderated

    Well said!

    (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

  • Re: Next time you threaten to leave Marriott, this may give you pause for thought
    pingreeman Platinum 1 Reviews
    Currently Being Moderated

    I think this post makes another point - and one to consider. Most of Marriott's efforts of late is to drive NEW customers as the article in this post points out. If that is the case, then here is the other side. Some key quotations from Lifetime Customer Value and Customer Acquisition Cost : (bold is my emphasis) -->

     

    Let’s take Lifetime Customer Value (LCV). The corporate world is often focused on quarterly and in best practices yearly results. That means that returns on investment have to happen quickly or they are useless. When short-term tactics prevail, customers are often mistreated. The innovation halts, marketing and customer relationship investments drop. Customer service is lousy. On short term executives may see a rise in profits but long term results are often slashed.

     

    Find out who are your best customers. Analyze your data, split customers into marketable groups and … action! Drop the marketing on unprofitable customers (that doesn’t mean you should treat them worse – just spend less on acquisition). Engage your profitable customers.

     

    One of the most effective ways to boost LTV is to increase customer satisfaction. Research has found that a 5% increase in customer retention can increase profits by 25% to 95%. The same study found that it costs six to seven times more to gain a new customer than to keep an existing one.

     

    Those who have walked away from Marriott probably knew the above quotations; those who have remained loyal will soon see the Marriott marketing pattern to gain millennials, have all Billion Chinese get MR memberships, drop point values, eliminate BOGOs, etc. and may see the light.

    (For each location tag, you will be guided through a 3-step process to add (1) a city and a state or a city and a country, (2) a Marriott brand, and (3) a Marriott hotel.)

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