Hilton Hhonors Case Study
Managing a Better Program - Introduction
Hilton Hotels sees its frequent guest programs “HHonors” as an incredibly important marketing tool. It serves to direct promotional and customer service efforts for a population of its most important clients, the frequent business traveler. Hilton is running the “HHonors” loyalty program to create and retain loyal customers in the same way as its major competitors. Organizations in the lodging industry all compete for the same subset of customers by introducing more generous loyalty programs. The case study “Hilton HHonors Worldwide: Loyalty Wars” by John Deighton and Stowe Shoemaker details the importance of this program to their strategy and marketing efforts. The competitive advantage that Hilton derived from the “HHonors” is apparent.
The use of Information Technology in loyalty programs provides access to information of consumers that can be analyzed for decision making purposes. Information collected from consumers can be stored in data warehouse and analytical tools applied to it can provide business intelligence that will give businesses a competitive advantage. There are benefits to be derived when Information Technology is incorporated into loyalty programs because businesses are now able to do much more with the data collected than would have been possible without IT.
The Hilton loyalty program can help property operators and brand owners manage better their customers in several ways. The loyalty program supports the identification and retention of customers who are the basis of most profits. It enables the management of Hilton to identify those clients and reward them on the spot with upgrades and recognition. These characteristics can be tracked and analyzed to produce a picture of the customer value to the brand of Hilton.
These unique offerings can be used to strengthen brand and improve brand loyalty in the mind of the client. They can also be designed to encourage client spending on things
Hilton Hotels sees its frequent guest programs “HHonors” as an incredibly important marketing tool. It serves to direct promotional and customer service efforts for a population of its most important clients, the frequent business traveler. Hilton is running the “HHonors” loyalty program to create and retain loyal customers in the same way as its major competitors. Organizations in the lodging industry all compete for the same subset of customers by introducing more generous loyalty programs. The case study “Hilton HHonors Worldwide: Loyalty Wars” by John Deighton and Stowe Shoemaker details the importance of this program to their strategy and marketing efforts. The competitive advantage that Hilton derived from the “HHonors” is apparent.
The use of Information Technology in loyalty programs provides access to information of consumers that can be analyzed for decision making purposes. Information collected from consumers can be stored in data warehouse and analytical tools applied to it can provide business intelligence that will give businesses a competitive advantage. There are benefits to be derived when Information Technology is incorporated into loyalty programs because businesses are now able to do much more with the data collected than would have been possible without IT.
The Hilton loyalty program can help property operators and brand owners manage better their customers in several ways. The loyalty program supports the identification and retention of customers who are the basis of most profits. It enables the management of Hilton to identify those clients and reward them on the spot with upgrades and recognition. These characteristics can be tracked and analyzed to produce a picture of the customer value to the brand of Hilton.
These unique offerings can be used to strengthen brand and improve brand loyalty in the mind of the client. They can also be designed to encourage client spending on things
References: Deighton, J. & Shoemaker, S. (2005). Hilton HHonors Worldwide: Loyalty Wars Harvard Business School Nov. 8th, 2005. Prod # 501010-PDF-ENG Hair, C., Lamb, C., & McDaniel, C. (2008). Marketing. Mason, Ohio: Thomson-South Western (2011). Hilton HHonors; Hilton HHonors Launches "Stories Without Words" Photo Contest with National Geographic Traveler. Marketing Weekly News. 593. Nelson, D. L., & Campbell Quick, J. (2011). Organizational Behavior (7th Edition ed.). Mason, OH, US: South-Western Cengage Learning. Perreault, W. & Cannon, J. & McCarthy,E. (2009) Basic Marketing ISE. 17th edition McRaw- Hill, Boston Pizam, A. (2010). International Encyclopedia of Hospitality Management (2nd Edition). Burlingter, MA, US: Elsevier Ltd. Schulaka, C. (2011). Marketing 's Magic Bullet? Keep It Simple and Consistent. Journal of Financial Planning, 24(3), 30-33. Retrieved from EBSCOhost.