Travel club systems as the new age member retention tool
Member retention in the subscription business model is not an easy feat. It often requires a sustainable strategy to build recurring engagement and reap the rewards. Travel club systems inculcate loyalty to convert first-time buyers into brand loyalists. By offering frequent rewards and value-added benefits, travel clubs help encourage repeat purchases thereby improving the recurring revenue. This is especially true when it comes to the new age customers - Millennials and Gen Zs.
In our hyper-competitive world, it remains a challenge to cater to every whim of your high-value customers. Picture this: your travel brand or company represents a leaky bucket. Now, do you have the strategies in place to avoid churn? Or are you solely focused on acquiring new customers?
It is a well-known fact that acquiring new customers can be very expensive than retaining the existing ones. Therefore, it makes sense to first fix the churn at the source to avoid the bucket from leaking instead of working to keep it full. The travel club system works as an excellent tool to boost member retention of your new or existing program. They are true drivers of customer loyalty and recurring revenue. Let us see how they help with retention in two ways -
l Travel club systems help retain your best customers
If you have high-value or VIP customers, you can establish an emotional connection with them by showing how your business values them. You don’t simply want to offer them incentives or rewards. They should have a positive experience with your brand to inculcate a sense of belonging. This is an excellent and non-monetary way of building loyalty. Additionally, you can offer them additional rewards on special occasions and go an extra mile for them to positively reinforce the sheer act of giving. In return, the customer will engage in repeat purchases and keep them coming back for more. It is a win-win situation for both customers and brands. It is worth noting that re-engaging your high-value customers once they drop out can be really challenging. So make sure to add the element of surprise and value proposition to keep them loyal as well as engaged.
l Travel club systems help you to win back lost customers
If customers feel insecure or indifferent, they are more likely to leave the brand. This is a more powerful indicator of dissatisfaction among your customers than product quality or price. It will add to the churn rate and make your bucket leaky if you can't find ways to re-engage your old customers.
The best strategy to reactive customers is by reaching out to them with personalized recommendations by leveraging their purchase history, demographics, and preferences. Consider implementing win-back rewards exclusively for customers who have gone quiet as a motivation for return. Letting them know that amazing loyalty incentives/rewards await them in the future or on their next purchase will drive the best results.