Introducing The Loyalty Metric
Marilyn Stewart
“Guests are assets, not transactions,” states Marilyn Stewart, Founder of a radical approach to building and retaining guest loyalty called The Loyalty Metric.
Created by a team of contrarian loyalty specialists – including data scientists, statisticians, brand architects, writers and AI, The Loyalty Metric offers the industry, the capacity to predict and personalize the guest experience in a manner that existing points-based loyalty programs can not.
Are your guests loyal to your Brand, your discount or to the points?
“Affinity, attachment and trust are the cornerstones of true emotional loyalty to a brand. Transactional relationships based on points are superficial and fleeting. Points are passé” added Stewart.
Our loyalty experience is extensive in every category. It began when, as one of the original architects of Air Canada’s Aeroplan, we were able to apply our direct marketing skills and lead the team through the design and implementation phases of the initial program. In addition, Marilyn built her love of hospitality through a 20+ year association as a loyalty marketing consultant to two of Saint Lucia’s outstanding resorts: Rendezvous, Stolen Time and BodyHoliday.
Says Stewart: “The name of the game is having a repeat guest strategy. The Loyalty Metric is deliberately provocative and disruptive and is designed to drive measurable long-term financial results in carefully calculated ways and to enhance the guest experience.”
The Loyalty Metric is designed to encourage, track and analyze – with forensic accuracy – guest visits, return visits, incremental spend and long-term commitment to the brand.
The Loyalty Metric represents an approach to loyalty management of unparalleled penetration.
According to informed hospitality industry sources*:
• It costs 15 times more to recruit a new guest than to keep an existing one
• An increase in loyalty of 5% lifts lifetime profits per guest as much as 76%
Operating at the heart of The Loyalty Metric process is a stochastic mathematical model**. Based on data quantity and quality, this model can forecast the probability of various outcomes.
It is widely used by retailers, airlines, and portfolio managers to track behaviour, analyze spending patterns and improve operational efficiency.
Concludes Stewart: “The Loyalty Metric anticipates a paradigm shift in the loyalty landscape – which is moving away from transactional points-based programs to those driven by conviction, positive experiences and emotional attachment. We can lead the charge!”
*Source: Brand Keys, Fiscal Facts about Loyalty – The Rule of Six
••Definition of stochastic models
Stochastic modelling forecasts the probability of various outcomes under different conditions using random variables. A well-established predictive tool that works.
