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Optimize Your Loyalty Program Through a Digital Strategy

An industry digital strategy opportunity report

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  • There is uncertainty on how to meet evolving customer needs and how to compete in a digital economy.
  • Organizations may have difficulty adapting new technologies or rethinking the existing business model of loyalty programs.
  • Without a framework to rethink how the organization delivers loyalty today, annual planning will become an ideation session that lacks strategic/holistic focus.

Our Advice

Critical Insight

Digital transformation increases the depth of data-driven insight and empathy available for creating more effective loyalty programs, which can in turn drive significantly higher levels of loyalty member engagement and share of wallet. Digital transformation has become the most powerful means of understanding customers, anticipating their needs, and demonstrating both value and personalization in an agile, efficient, and scalable way across all touchpoints and revenue streams.

Impact and Result

  • Design a digital loyalty program strategy that applies innovation to your business model, streamlines and transforms its processes, and makes use of technologies to enhance schemes and interactions with guests.
  • Use digital for transforming your loyalty program’s nonroutine cognitive activities and for derisking key elements of the value chain.
  • Create a balanced loyalty program roadmap that improves digital maturity and prepares you for long-term success in a digital economy.

Optimize Your Loyalty Program Through a Digital Strategy Research & Tools

1. Optimize Your Loyalty Program Through a Digital Strategy Deck – A step-by-step GHRC context report that walks you through how to identify top value chains and a digitally enabled growth opportunity, transform stakeholder journeys, and build a digital transformation roadmap.

This industry digital strategy opportunity report walks you through a value-driven approach to digital transformation that allows you to identify what aspects of the loyalty program to transform, what technologies to embrace, what processes to automate, and what new program models to create. This approach to digital transformation unifies digital possibilities with your guest experiences.

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Optimize Your Loyalty Program Through a Digital Strategy

An industry digital strategy opportunity report

Analyst Perspective

A successful digital loyalty program begins with digital strategy

Many assume that simply having a loyalty program is enough to propel the organization forward. However, this is not the case, especially if the loyalty program is focused solely on transactional marketing.

Casinos and hotels must witness the art of the possible, the achievable in the world of loyalty. A successful digital loyalty program that focuses on relationship marketing will move the business forward and provide resiliency. This requires a value-driven approach to digital transformation.

In this report, we leverage Info-Tech’s digital business strategy approach to develop a digital loyalty strategy that identifies aspects of the program to transform, technologies to embrace, processes to automate, and new growth strategies to create.

Larry Fretz

Larry Fretz
VP, Gaming & Hospitality (GHRC)
Info-Tech Research Group

Monica Pagtalunan

Monica Pagtalunan
Research Specialist, Gaming & Hospitality
Info-Tech Research Group

Executive Summary

Your Challenge

  • There is uncertainty about how to meet evolving customer needs and how to compete in a digital economy.
  • Your organization has difficulty adapting new technologies or rethinking the existing business model of your loyalty program.
  • Your management lacks a framework to rethink how your organization delivers loyalty today, which causes annual planning to become an ideation session that lacks strategic/holistic focus.

Common Obstacles

  • Your IT team lacks the understanding of the loyalty program context needed to identify opportunities for digital transformation and enablement.
  • Your organization might approach digital transformation as if we were still in 2019, not recognizing that the pandemic resulted in a major shift to an end-to-end digital economy and exposure to disruptive gaming and hospitality competition.
  • Business executives think digital is “IT’s problem” because digital is viewed synonymously with technology. IT thinks digital is “a business problem” because digital exceeds the current thinking of what’s possible for their department.

Info-Tech’s Approach

  • Design a digital loyalty program strategy that applies innovation to your business model, streamlines and transforms its processes, and makes use of technologies to enhance schemes and interactions with guests.
  • Use digital for transforming your loyalty program’s nonroutine cognitive activities and for derisking key elements of the value chain.
  • Create a balanced loyalty program roadmap that improves digital maturity and prepares you for long-term success in a digital economy.

Info-Tech Insight

Digital transformation increases the depth of data-driven insight and empathy available for creating a more effective loyalty program, which in turn can drive significantly higher levels of member engagement. It has become the most powerful means of understanding customers, anticipating their needs, and demonstrating both value and personalization in an agile, efficient, and scalable way across all touchpoints and revenue streams.

What is digital?

Digital: The representation of a physical item in a format used by computers

Digitization: Conversion of information and processes into a digital format

Digitalization: Conversion of information into a format to be processed by a computer

Digitization and digitalization alter how work takes places in an organization and form the foundation of digital transformation.

We maintain that digital transformation is all about becoming a “digital business” – an organization that performs more than 66% of all work activities via executable code.

As gaming and hospitality organizations take a step closer to this optimal state, new avenues become open to identify advances to promote growth, enhance customer experiences, secure sustainability, drive operational efficiencies, and unearth potential future business ventures. In the end, digital transformation can help organizations understand guest emotions during the customer journey, showing organizations that human emotions like compassion and empathy are driving forces behind purchases.

Comparing traditional versus digital loyalty programs

In essence, a digital loyalty program takes all the traditional aspects of making customers feel valued by a brand and uses innovative techniques and schemes to ensure every customer enjoys a truly personal experience with the brand. Digital transformation of a loyalty program provides the organization with opportunities to advance growth, enhance customer experiences, secure sustainability, drive operational efficiencies, and unearth potential future business ventures.

TRADITIONAL DIGITAL
Design Largely transactional currencies with standard and uniform reward schemes Relationship-driven with personalized reward scheme stemming from customer interactions via digital touchpoints
Transaction Method Physical loyalty cards Mobile application
Delivery Method Print, mail, email pre- and post-stay/play Push notifications, text message pre-, during, and post-stay/play
Objective Encourage repeat purchase

Behavioral loyalty: Timely, tailored content that is trusted, convenient, and available across all channels

Attitudinal loyalty: Brand proposition, overall experience

Type of Rewards Tangible rewards Tangible and experiential rewards
Technology & Analytics Usage Minimal Extensive
Result Creates silos as opposed to taking flexible, collaborate approaches Creates a connected history that informs the brand of the next best engagement opportunity

The traditional approach alone can kill the success of your loyalty program

Is loyalty an emotion or a transaction? Ultimately, it can be both. A sole focus on transaction-based loyalty, however, will fail to address the emotional side that provides a strong customer experience.

Consider the following components and discover how your loyalty program stacks up against this list to determine whether your program is largely traditional versus digital.

Does your program...

  • Ignore technology process to enable loyalty?
  • Have weak promotional levels?
  • Have limited or no analysis of guest behaviors, activities, or touchpoints with the business?
  • Ignore personalization?
  • Fail to offer customers a variety of channels to interact with the loyalty program?
  • Not provide cross-channel redemption services?
  • Use general (and ineffective) incentives in an attempt to drive purchases?

“The customers that are pulled in through transactional marketing can be nurtured through relationship marketing.

On the flip side, customers who are nurtured through relationship marketing can be convinced to make another purchase in a transactional way, such as a discount.

As you can see, the two strategies go hand in hand.”

– Meltwater, 2020

Your digital loyalty program can transform your relationship with customers

A loyalty program does not only consist of the activity of earning and burning through loyalty schemes. This is where the customer experience portion of a loyalty program becomes important as it focuses on driving ongoing conversations and interactions with the customer to create a deeper sense of loyalty. This is enabled by digital.

76%
Experience components make up for 76% of what drives engagement in a loyalty program.

12%

Recognition & Support

10%

Data Usage & Trust

12%

Personal Relevance

8%

Communications

12%

Ease & Enjoyment

8%

Digital

10%

Brand Alignment

4%

Meets Needs

Bond Loyalty, 2020

Further, a fundamental shift to a digital loyalty program will have positive outcomes, influencing retention and advocacy among your guests:

66%
Percentage of customers that are more likely to recommend brands with good loyalty programs

77%
Percentage of customers who state that programs make them more likely to continue doing business with that brand

63%
Percentage of customers that modify amount spent to maximize points

Bond Loyalty, 2021

The ideal DNA of a digital loyalty program consists of alignment across three components

  1. A deep understanding of guest needs and expectations
    • According to a survey given to hospitality and tourism organizations, “22% strongly agree and 50% agree that they have a deep understanding of customer insights to understand evolving needs” (Adobe, 2021).
  2. A connected approach to marketing and guest experience technology
    • According to a survey given to hospitality and tourism organizations, “20% strongly agree and 53% agree that they have a fragmented approach to marketing and customer experience technology” (Adobe, 2021).
  3. An increasing/shifting budget to support guest demand for digitized experiences
    • “77% of hotel operators state that ‘driving guest loyalty’ is a ‘very’ or ‘extremely’ important technology initiative” (Hospitality Technology, 2022).

Component #1: The need for a deep understanding of guest needs and expectations

The gaming and hospitality industry is dealing with the changing needs and expectations of customers. Organizations should be concerned about what is happening in the external environment that will have a direct influence on what changes should be made in a loyalty program.

Trifecta of Change

Digital consumer lifestyle

Consumers’ increase in digital dependence has been a phenomenon for quite some time, with the pandemic shifting behaviors and preferences even further. When an organization’s technology is outdated, that really sends a message about the brand since consumers desire a high level of technological familiarity. Therefore, there is an increased need for digital transformation and adoption to provide a unique experience.

GENERATIONAL SHIFT

Organizations have an eye toward the future, and the future lies with the younger demographics – millennials and Gen Z. Organizations must consider a different audience, enhancing the experience to sway this new generation of customers. As these digital natives are always looking for the next big thing in technology and desire seamless technology integration in their daily lives, companies are forced to continuously upgrade products and services to appease these generational segments.

Health & safety habits

Organizations should be focusing on high-tech/low-touch solutions. In the reopening phase, there was an emphasis on barriers, social distancing, and cleaning investments. Now, the emergence of higher-end technology-related innovations has induced the need and desire for digital transformation and adoption.

Component #2: The need for a connected approach to marketing and guest experience technology

Organizations can develop a successful loyalty program by understanding the changing nature of the relationship between guests and brands through technology. In any interaction, communication, or engagement through technology, guest interpretations are changed by that technology. This technology influence can be a risk if there are fragmented organizational strategies, as it will lead to incongruent approaches to address client needs.

Alignment between marketing, operations, and IT can lead to:

  • Faster cadence of response to new and possibly transient marketing loyalty concepts due to competition, agility (fail fast), seasonality, and first-to-market.
  • Enablement of loyalty program tools and technologies and the ability to exploit the art of the possible.
  • Enhancement of data collection and insights to evolve the customer experience and further improve the guest interpretations that are colored or changed by the technology.

This image contains a bar graph, displaying the following data:	Audit & Compliance: 8.4	8.4; Food & Beverage: 8	7.6; Other:	8	7.9; Security, Risk & Survelliance	7.9	7.7; Casino/Gaming: 7.8	7.7;	HR: 7.8	7.6;	Hotel: 7.5	7.5;	Finance: 7.3	7.2;	Marketing: 7.2	7.2; Legal: 7	6.3;

Data Extract: Info-Tech’s Gaming & Hospitality Benchmarking Report illustrates the current overall satisfaction and value metrics. Marketing’s view of IT value and satisfaction is lower overall compared to other departments, with a rating of 7.2 out of 10.

Component #3: The need for an increasing/shifting budget to support guest demand for digitized experiences

Allocation of budget must be shifted to support digital in the marketing department, determining where technology is a gap. This redirection should aim to improve business resiliency through automation and guest experience through innovation. GHRC stands by the allocation and prioritization of budget toward initiatives that enable the following overarching systems:

1. Digital Ecosystem – Building for Expansion

Refers to the environment that the business must compete within.

A key component of this trend involves laying the foundation for upcoming high-value implementations.

To accomplish this, your environment must allow for the connectivity of systems and processes so that your organization is in a better position to take advantage of projects in the coming years.

2. Experience Platform – Building for an Optimal Experience

Refers to a system that sits on data to manage both operational and customer experience with the ultimate objective of driving engagement for customers and the right decision for organizations.

Further, by enticing your guests with specific technology or trends, you’re enhancing the guest experience while driving present and future sales.

Alignment across all three components can lead to profitability

There is a financial dimension of loyalty that must be considered: cost and revenue. Through increased revenue and decreased cost, organizations will experience higher profitability.

THE REVENUE OF LOYALTY

Improving your loyalty program can lead to increased revenue. Consider the following revenues and how your strategy (Experience and Earn + Burn) performs to accomplish these goals:

  • Increased ancillary revenue such as membership fees, point sales, or partner payments
  • Increased purchase frequency or volume
  • A willingness to pay premium
  • Lowered customer churn rate
  • Higher referral rates

THE COST OF LOYALTY

The development, design, and maintenance of a loyalty program are expensive. Your organization will need to consider the cost of a loyalty program, especially its legacy technology and manual processes (vs. the return on digital). Consider the following costs:

  • Cost of soft benefits, such as perks, recognition, and member events
  • Rewards redemption and accrued liability
  • IT investment and subsequent maintenance
  • Marketing and advertising
  • Business overhead, such as payroll and staffing
  • Research and development
  • Vendor contract

A digital loyalty transformation is about building resilience and relationships in a digital economy

Digital Loyalty Strategy

  • Old Paradigm
    • Reluctance to use digital collaboration
    • Brick and mortar, multichannel focus
    • Guest value price
    • Transactional marketing
  • New Paradigm
    • Wide acceptance of digital collaboration
    • Omnichannel acceptance
    • Guests value convenience and speed of fulfillment
    • Relationship marketing

Info-Tech Insight

A fundamental shift is required to evaluate how organizations capture the priorities and strategies for digital loyalty transformation.

Info-Tech’s approach to digital loyalty strategy

A path to thrive in a digital economy.

  1. Identify top value chains to be transformed
  2. Identify a digitally enabled growth opportunity
  3. Transform stakeholder journeys
  4. Build a digital transformation roadmap

Info-Tech Insight

Pre-pandemic digital strategies have been primarily focused on automation. However, your post-pandemic digital strategy must focus on driving resilience for growth opportunities.

The Info-Tech difference:

  • Understand how your organization creates value today to identify opportunities for digital transformation.
  • Leverage strategic foresight to evaluate how complex trends can evolve over time and identify opportunities to leapfrog competitors.
  • Design a journey map to empathize with your guests and identify opportunities to streamline or enhance existing and new experiences.
  • Create a balanced roadmap that improves digital maturity and prepares you for long-term success in a digital economy.

Why is a digital loyalty strategy essential today?

The typical loyalty program is erroneously focused solely on increasing market share and revenues through repeat purchase and usage. Gaming and hospitality organizations must structure people, processes, and technology to be more focused on the individual customer, prioritizing behavioral and attitudinal loyalty and, as a result, cultivating engagement and profitability. The creation of new customer behaviors and expectations due to the pandemic, coupled with siloed approaches among marketing, operations, and IT, makes it difficult to accomplish this guest-centric loyalty program. Consequently, stakeholders are lacking the design-thinking mindset needed to recognize a clear and unified vision for the digital customer journey, and the loyalty program is lacking the level of sophistication needed to adapt to new technologies and opportunities for response.

ISSUE

DIGITAL LOYALTY STRATEGY

Increasing market competition and ubiquity of programs

Understand who your incumbents and disruptors are and define opportunities to either compete or differentiate.

Increasing sophistication of guest expectations and demands

Understand your guests and their journeys better to meet and exceed expectations.

Lack of customer-facing technological progress

Determine opportunities to enter the digital economy and improve customer-facing technology progress.

Siloed marketing, operations, and IT department strategies

Merge two levels of maturity by aligning strategic goals and building digital fluency.

Understand the different components necessary to develop a guest-centric, unified, and agile enterprise loyalty program architecture

Security

Master Data Management

Guest Loyalty & Retention

Guest Experience Layer

Headless Commerce

Hyperpersonalized Digital Marketing

Service & Engagement

Transactional mechanisms available across multiple channels (mobile apps, web, email, text, etc.).

Personalized messaging based on interactions and captured behaviors.

Technologies that enable convenience but also visibility and data across touchpoints.

Loyalty Management Layer

Guest Profiles

Loyalty Schemes

Transaction Processing

Administration

Loyalty Execution

  • Data collection
  • Profile unification
  • Segmentation
  • Customer experience activation
  • Perks
  • Gamified loyalty
  • Earn, burn (and yearn)
  • Accrual & redemption
  • Tier classes & assessment
  • Points & voucher expirations
  • Point management
  • Partner management (loyalty terms, points block, billing, accrual template)
  • Promotion admin (rules)
  • Promotion recommendation
  • Personalized rewards
  • Customer lifetime journey

Loyalty Platform Solution

Analytics Layer

Operational Data & API Integration Layer

Source Layer

External Data Sources

Internal Data Sources

Streaming Data Sources

Social media, partner data, public data, data services, etc.

RMS, PMS, POS, CRM, CMS, etc.

Sensor data and log files generated by guests using mobile/web apps, ecommerce purchases, in-game player activity, etc.

Foundation: Understanding of Guest Behaviors, Preferences, and Drivers

IT’s Role in Enhancing the Organization’s Loyalty Program

Focus of Report

1 – Digital Loyalty Program Opportunities

  • Careful analysis of pain points, gaps, and opportunities within the loyalty program is the core estimation of effectiveness and a way to determine digital initiatives to enhance your program.

2 – Loyalty Platform Solution Vendor

  • Select a system that aligns with marketing’s strategic goals and opportunities.

3 – Data & Integration Strategy

  • With digital loyalty program opportunities in mind, optimize your data and integration strategy.
This image contains a screenshot of an Info-Tech Thoughtma- titled Optimize your Loyalty Program Through Digital Business Strategy

Insight summary

Overarching Insight

Digital transformation increases the depth of data-driven insight and empathy available for creating more effective loyalty programs, which in turn can drive significantly higher levels of loyalty member engagement and share of wallet. It has become the most powerful means of understanding customers, anticipating their needs, and demonstrating both value and personalization in an agile, efficient, and scalable way across all touchpoints and revenue streams.

Phase 1 Insight

Phase 2 Insight

Phase 3 Insight

The pervasiveness of loyalty disruption makes change essential today, advancing the need for a digital loyalty strategy that considers the business context as well as the competitive nature and landscape of loyalty in the gaming and hospitality industry.

To redefine relationships with guests and sidestep competition, gaming and hospitality organizations must thrive in the digital age by innovating. This can be done through systematically scanning the environment for disruptive loyalty trends.

By capturing the end-to-end experience of end users, the organization can identify significant pain points that both the marketing department and guests are experiencing and further identify opportunities to digitize parts of the journey to help solve them.

Phase 4 Insight

Initiative profiles and a roadmap that balances growth opportunities with business resilience will transform the organization for long-term success in the digital economy for gaming and hospitality, taking IT strategy into consideration.

Digital loyalty strategy benefits

Guest Benefits

  • The business will be able to meet and exceed expectations of various casino and hotel guest segments through digital transformation.
  • Enhanced and high-value long-term guest journeys will result in enrolled, entertained, and loyal guests.

Business Benefits

  • Increase revenue and retention through high-value loyalty program experiences and engagement.
  • Differentiate your brand through data collection and insight generation that will personalize marketing messages and offerings.
  • Gain the opportunity to automate internal processes to increase efficiency and productivity.
  • Improve reputation by enabling transactional, behavioral, and attitudinal loyalty.

IT Benefits

  • A digital loyalty strategy ensures that IT is seen as a valuable partner in the eyes of the business.
  • Your organization will likely invest in new or updated software and hardware for a successful and low-latency digital loyalty strategy.
  • IT’s role in the organization will become more innovative in this increasingly digital environment.

Responsible gaming as a guiding principle for casinos

As you develop and execute your digital loyalty strategy, ensure you balance responsible gaming and loyalty. Digital attracts and supports responsible gaming a lot better, but gaming and hospitality organizations must do their due diligence in ensuring the safety of their players, especially when it comes to a digital loyalty program initiative.

As digital opportunities emerge and are adopted, consider your loyalty program’s responsible gaming plan, self-exclusion program, property signage and responsible gaming disclosures, advertising restrictions, wager and time limits, point restrictions, restrictions on financial instruments, treatment and research funding, employee training, restrictions on alcoholic beverages, and so on.

Overarching business risks & considerations

Don’t forget about the reality of your environment

#1 Service Culture & Delivery

Loyalty is driven by far more than loyalty schemes and rewards. Guests that come to your property will expect a highly satisfactory experience overall. Therefore, the operational decisions that your organization makes in relation to customer experience and service delivery will also determine the success in luring guests to enroll in your loyalty program. Consider the following experiential elements that may affect the psychological behaviors and emotions of your guests: room quality, service and experience, amenities, and in-house food and beverage options.

#2 Know Your Business

Bear in mind the classification your organization falls under. Every organization is different, with varying initiatives, priorities, guest demographics, and funding challenges.

  • For casinos – regional versus destination
  • For hotels – service levels:
    • Luxury
    • Upper Upscale
    • Upscale
    • Upper Midscale
    • Midscale
    • Economy

Overarching IT risks & considerations

The viability of a digital loyalty strategy is highly dependent on the maturity of the IT department. Measure and assess your IT maturity because what may seem like a simple project could be more complex than expected. Therefore, your organization must understand the possible uncertainties and have substantial processes in place to stand resilient against potential risks.

IT Security & Network

  • IT Security – Satisfaction that organizational devices and data are properly secured
  • Network & Infrastructure – Satisfaction with reliability of communication systems and networks

Info-Tech Benchmarking Insight - A digital loyalty strategy will require superior IT security and network services and will therefore increase the importance of IT security and network to the business. Depending on IT’s maturity, this could positively or negatively affect business stakeholder and guest satisfaction. Further, consider what this means for identity and access management as well as customer records and privacy, especially when it comes to data protection and privacy compliance laws (GDPR, PIPEDA, CPPA, DPA, PCI).

Data & Analytics

Analytical Capability – Satisfaction with effective standard reports, custom report capability, and the ability to generate business insights

Data Quality – Put policies, processes, and capabilities in place to ensure that appropriate targets for data quality are set and achieved to match the needs of the business

Info-Tech Benchmarking Insight – Business stakeholders must understand the value of data and analytics in making the right decisions. Satisfaction must be improved as personalization and guest identification will require automation and real-time data and analytics to maximize the guest experience. Further, consider data governance and how your organization will classify data and leverage business intelligence (BI) tools.

This image contains a table with three columns, with the following Column Headings: Service; Importance; Satisfaction.

Data Extract: Info-Tech’s Gaming & Hospitality Benchmarking Report illustrates the current importance and satisfaction metrics for IT Security, Network, Data and Analytics functions according to business stakeholders.

How to use this report

This report is intended to act as a standalone report on the opportunities within the gaming and hospitality industry to digitally enable and transform loyalty programs while also serving as a research-based input to the Define Your Digital Business Strategy blueprint and associated activities. Realize all organizations are unique and you may feel that some sample information may not be relevant to or representative of your organization due to the type of organization, market, etc. We recommend that you adjust and customize the template as needed to be specific to your organization and to create the most valuable digital loyalty strategy for your organization.

This report uses research-based data for “Integrated Resort X” to demonstrate digital loyalty opportunities for use in a digital business strategy. Because integrated resorts focus on gaming, non-gaming, and hospitality products, the report will be able to demonstrate applicable connections for hotels, regional casinos, and destination casinos.

Visit Info-Tech’sDefine Your Digital Business Strategy blueprint for full activity details

Phase 1

Phase 2 Phase 3 Phase 4

Identify top value chains to be transformed

Identify a digitally enabled growth opportunity

Transform stakeholder journeys

Build a digital transformation roadmap

1.1 Understand the business context

1.2 Understand your business ecosystem

1.3 Identify value chains for transformation

2.1 Conduct horizon scan

2.2 Identify leapfrog ideas

2.3 Conduct value chain impact analysis

3.1 Identify stakeholder personas and journey scenarios

3.2 Conduct stakeholder journey mapping

3.3 Prioritize opportunities

3.4 Define digital goals

3.5 Break down opportunities into initiatives

4.1 Create initiative profiles

4.2 Build your roadmap

Act X.X

When you see these symbols in this document, they represent the research based on digital loyalty program opportunities for use in the corresponding (X.X) Define Your Digital Business Strategy blueprint activity.

Phase 1
Top Value Chains to Be Transformed

An industry digital strategy opportunity report

This phase will walk through the following activities:

  • Understand the business context
  • Assess the business ecosystem
  • Identify value chains for transformation

The business context

A prerequisite to all strategic planning should be to elicit the business context from the business stakeholders. Review the business context documents, which include business strategy documents, interview notes from executive stakeholders, and other sources for uncovering the business strategy.

Inputs Documents/Method

Outputs

Key stakeholders Strategy document
  • Stakeholders that are actively involved in, affected by, or influence the outcome of the organization, e.g. employers, customers, vendors
Vision and mission of the organization

Website

Strategy document

  • What the organization wants to achieve and how it strives to accomplish those goals.
Business drivers CEO interview
  • Inputs and activities that drive the operational and financial results of the organization
Key targets CEO interview
  • Quantitative benchmarks to support strategic goals, e.g. double the enterprise EBITD, improve top-of-mind brand awareness by 15%
Strategic investment goals

CFO interview

Digital strategy

  • Financial investments corresponding with strategic objectives of the organization, e.g. geographic expansion, digital investments
Top three value-generating lines of business Financial document
  • Identification of your top three value-generating products and service or lines of business
Goals of the organization over the next 12 months

Strategy document

Corporate retreat notes

  • Strategic goals to support the vision, e.g. hire 100 new sales reps, improve product management and marketing
Top business initiatives over the next 12 months Strategy document
  • Internal campaigns to support strategic goals, e.g. invest in sales team development, expand the product innovation team
Business model Strategy document
  • Products or services that the organization plans to sell, the identified market and customer segments, price points, channels, and anticipated expenses
Competitive landscape Internal research analysis
  • Who your typical or atypical competitors are

For guidance visit the Business Context Interview Guide

Importance of business context to digitally transform your loyalty program

Simply having a loyalty program is no longer enough to prop up a business model.

  • Although a loyalty program is viewed as just another product/service of a gaming and hospitality organization’s portfolio, it is important to remember that a digital loyalty program strategy can enable all business inputs to drive growth. Therefore, look to additionally assess the context of your loyalty program and ensure that it aligns with the business context.
  • As a strategic driver, IT needs to work with the business. Traditionally, IT has not partnered with the business, which means that IT doesn’t have the information needed from the business to execute on a prioritized list of initiatives.
  • By understanding the business context, CIOs can climb the maturity ladder to help drive growth. Based on GHRC’s 2021 benchmarking data, the industry’s maturity is rated as a Trusted Operator on Info-Tech’s maturity ladder. CIOs at this level can play a role in digital transformation by improving back-office processes but should aim for a higher mandate.

Steps

  • Document the business context the organization has uncovered and streamline the process for executing on any strategic IT initiative, especially a digital loyalty strategy.
  • IT functions that repeatedly try to understand and improve the business will see an increase in overall stakeholder satisfaction and value.

Result

  • Ability to move from a Trusted Operator to the aspirational Business Partner or Innovator level on Info-Tech’s maturity ladder. Innovator: Information & Technology as a Competitive Advantage; Business Partner: Effective Delivery of Strategic Business Projects; Trusted Operator: Enablement of Business Through Applications and Work Orders; Firefighter: Reliable Infrastructure and IT Service Desk; Unstable: Inability to Consistently Deliver Basic Services

Info-Tech Insight

By leveraging the digital business strategy to enable new digital capabilities, your organization will have the opportunity to demonstrate the value of IT and the satisfaction IT can provide.

Integrated Resort X’s business context:
Key stakeholders, vision, and mission

Determine whether your loyalty program’s objective aligns with the vision and mission of your organization.

Key Stakeholders

  • Guests
  • CEO
  • CIO/IT Director
  • CSO
  • COO
  • CFO/CRO
  • VP/Director of Loyalty & Marketing

Vision

“Create spectacular worlds that immerse, inspire and connect you. We don’t perform magic; we create it with excellence.”

Mission

“Create the Extraordinary”

Digital Loyalty Strategy Vision

Create extraordinary loyalty program experiences with technologies to immerse, inspire, and connect guests in a digital era.

Caesars Entertainment, 2020

Integrated Resort X’s business context: Gaming and hospitality value drivers

Determine whether your loyalty program’s products, services, features, and offerings align with your organization’s value drivers.

Guest value

  • Surprises and delights associates and guests
  • Connects associates with guests on a personal level
  • Focuses on enhancing efficiency and convenience
  • Brand impact

  • Enables first-to-market or unique marketing positioning
  • Assists in accomplishing strategic priorities

Operational excellence

  • Provides transparency in the flow of value to the guest
  • Empowers associates and promotes teamwork
  • Improves responsiveness in problem solving

Risk & resilience

  • Mitigates and withstands rapid changes across the business and IT landscape
  • Secures guest information while protecting brand assets
  • Easily integrates with current technologies, projects, and strategies
  • Is readily available technology and has active vendor support and expertise

Business growth

  • Drives sustainable growth
  • Diversifies methods of generating revenue
  • Increases the business market reach

Integrated Resort X’s business context: Strategic investment goals

Determine whether your loyalty program’s initiatives align with the strategic investment goals of your organization.

Excellent Products & Services

Focused on building loyalty and value with guests through a unique combination of great service and excellent products.

Maximize Profitability

Deepen efficiencies and achieve sustained growth and margin enhancements by transforming the way we operate.

Expand Footprint

Invest in our operating model by expanding the footprint of our Centers of Excellence and enabling best-in-class operations through adjustments within corporate and property business units.

Technology Leadership

Use technology to maximize revenue, drive efficiency in our operations, and provide an enhanced customer and employee experience.

MGM, 2020.

Integrated Resort X’s business context: Top three value-generating lines of business & business initiatives

Determine whether your loyalty program’s schemes and campaigns have benefited your organization’s top value-generating lines of businesses and whether any investments toward initiatives have been made to your loyalty program.

Casino Operations

61%

Hotel Operations

16%

Food & Beverage

12%

Caesars Entertainment, 2021

Business Initiatives

  1. Invest in driving guest loyalty by enabling omnichannel and enhancing guest technology such as self-service opportunities and tools.
  2. Invest in employee productivity while reducing direct labor and overhead costs.
  3. Invest in the cross-promotion of our five complementary businesses: casino, sports betting, food and beverage, hotel, and retail and entertainment.

MGM, 2020

Integrated Resort X’s business context: Goals and key targets

Determine whether your loyalty program’s initiatives have directly benefited the goals and key targets of your organization.

Goals

Key Targets

Entertain players

Player Entertainment Needs Index Score increases to 62 out of 100

Deliver promised financial return to the state

Net income increases by 15%

Improve on-property spending

Grow average non-room revenue by 10%

Increase direct booking

Increase direct bookings by 8%

Build mobile revenue

Increase mobile revenue by 30%

BC Lottery Corporation, 2021.

Integrated Resort X’s SWOT analysis

Determine whether your loyalty program’s features have had a direct effect on your organization’s overall strengths, weaknesses, threats, and opportunities.

STRENGTHS (INTERNAL)

  • Responsible gaming
  • Brand awareness
  • Strategic partnerships
S W

WEAKNESSES (INTERNAL)

  • Outstanding rewards liability
  • Technology landscape

THREATS (EXTERNAL)

  • Demographic transition
  • Diversify offering
T O

OPPORTUNITIES (EXTERNAL)

  • Competitive landscape
  • Global pandemic
  • Subject to extensive regulation

Business Strategy Hub, 2021.

Competitive landscape
Assess your business ecosystem

Understand the nature of the competition within the gaming and hospitality industry

To survive, grow, or transform in today's digital era, organizations must first have a strong pulse on their business ecosystem. Learning what your competitors are doing to grow their bottom line is key to identifying how to grow your own. Start by understanding who the key incumbents and disruptors in your industry are to identify where your industry is heading.

Incumbents: These are established leaders in the industry that possess the largest market share. Incumbents often focus their attention to their most demanding or profitable customers and neglect the needs of those down market.

Disruptors: Disruptors are primarily new entrants (typically startups) that possess the ability to displace the existing market, industry, or technology. Disruptors are often focused on smaller markets that the incumbents aren’t focused on.

(Clayton Christenson, 1997)

Info-Tech Insight

Incumbents can partner with disruptors to develop new capabilities, reach new markets or demographic groups, or fend off competition from other sectors.

Industry

A circle is shown with large circles (Incumbents), medium Circles (organization), and Small Circles (Disruptors) inside of it.

Hotel comparative loyalty program analysis (as of April 2022)

Loyalty Program Tiers Partnerships Earn Burn Point Expiration Policy Multi-Property Program Mobile App Features Intangible Value Creation Enablement
Marriott Bonvoy
  • Marriott Bonvoy Member (0-9 nights)
  • Silver Elite (10 nights)
  • Gold Elite (25 nights)
  • Platinum Elite (50 nights)
  • Titanium Elite (75 nights)
  • Ambassador Elite (100 nights + US$20,000 in annual spend)
  • Food & Beverage
  • Car Services
  • Credit Cards
  • Cruise
  • Food & Beverage
  • Car Services
  • Credit Cards
  • Cruise
  • Hotel Stays
  • Car Services
  • Gift Cards & Catalog
  • Cash
  • Hotel Stays
  • Point Transfers
  • Airline
24
  • Mobile check-in
  • Mobile key
  • Manage loyalty program account
  • Mobile chat
  • Direct booking
  • Mobile requests
  • Mobile dining
  • Live maps

Non-Fungible Token (NFT) Creation

Hilton Honors

Hilton Honors Member (0-7 nights)

Silver (7 nights)

Gold (28 nights)

Diamond (42 nights)

  • Food & Beverage
  • Car Services
  • Credit Cards
  • Food & Beverage
  • Car Services
  • Credit Cards
  • Hotel Stays
  • Offers
  • Food & Beverage
  • Car Services
  • Experiences
  • Hotel Stays
  • Shopping & Retail
  • Airline
12
  • Mobile check-in
  • Digital key
  • Direct booking

Not Offered

IHG Rewards
  • Club (0-7 nights)
  • Gold Elite (7 nights, 7,000 points)
  • Platinum Elite (30 nights, 30,000 points)
  • Spire Elite (55 nights, 55,000 points)
  • Food & Beverage
  • Car Services
  • Credit Cards
  • Food & Beverage
  • Car Services
  • Credit Cards
  • Airline
  • Food & Beverage
  • Car Services
  • Gift Cards & Catalog
  • Cash
  • Hotel Stays
12
  • Direct booking
  • Manage your stay
  • Access member-only rates
  • Check account status
  • Redeem
  • Enjoy offers
  • Digital check-in and checkout

Not Offered

Deficient:

  • Casino
  • Guest Feedback
  • Gas
  • Vacations
  • Crypto

Hotel comparative loyalty program analysis (as of April 2022)

Loyalty ProgramTiersPartnershipsEarnBurnPoint Expiration PolicyMulti-Property ProgramMobile App FeaturesIntangible Value Creation Enablement

Wyndham Rewards

  • Blue (0-3 nights)
  • Gold (3 nights)
  • Platinum (9 nights)
  • Diamond (24 nights)
  1. Car Services
  2. Credit Cards
  3. Gas
  4. Shopping & Retail
  1. Car Services
  2. Credit Cards
  3. Guest Feedback
  4. Hotel Stays
  1. Car Services
  2. Experiences
  3. Gift Cards & Catalog
  4. Hotel Stays
  5. Shopping & Retail
  6. Airline
18
  • Track point balance
  • Register for promotions
  • Book directly

Not Offered

Choice Privileges

  • Members (0-10 days)
  • Gold (10 nights)
  • Platinum (20 nights)
  • Diamond (40 nights)
  1. Car Services
  2. Credit Cards
  3. Crypto
  1. Car Services
  2. Credit Cards
  3. Casino
  4. Hotel Stays
  5. Point Transfers
  6. Vacations
  1. Car Services
  2. Casino
  3. Hotel Stays
  4. Point Transfers
  5. Vacations
18
  • Book directly
  • Manage reservations
  • Manage rewards
  • Set Your Extras preferences
  • Redeem points

Turn points into cash with Bakkt

Deficient:

  • Food & Beverage
  • Cruise
  • Cash
  • Offers

Gaming resort comparative loyalty program analysis (as of April 2022)

Loyalty ProgramTiersPartnershipsEarnBurnPoint Expiration PolicyMulti-Property ProgramMobile App FeaturesIntangible Value Creation Enablement

Caesars U.S. Total Rewards

  • Gold (0+ Tier Credits)
  • Platinum (5,000+ Tier Credits)
  • Diamond (15,000+ Tier Credits)
  • Diamond Plus (25,000+ Tier Credits)
  • Diamond Elite (150,000+ Tier Credits)
  • Food & Beverages
  • Credit Cards
  • Cruise
  • Hotel Stays
  • Vacations
  • Online Gaming
  • Food & Beverages
  • Live Events
  • Guest Feedback
  • Amenities
  • Hotel Stays
  • Shopping & Retail
  • Table Games
  • Slots
  • Sports Betting
  • Food & Beverage
  • Live Events
  • Guest Feedback
  • Hotel Stays
  • Shopping & Retail
  • Table Games
  • Slots
  • Sports Betting
  • Online Gaming
06
  • Access to mobile-exclusive offers
  • Check in and out
  • Book directly
  • Purchase tickets
  • Make, modify, or cancel dining reservations
  • Check your balances
  • My Bank: free slot play to your slot machine
  • Discover top picks in area
  • Contact casino host
  • Mobile-friendly maps and location-based info

Not Offered

MGM Rewards

  • Sapphire (up to 19,999 tier credits)
  • Pearl (20,000 tier credits)
  • Gold (75,000 tier credits)
  • Platinum (200,000 tier credits)
  • Noir (By invitation only)
  • Food & Beverage
  • Car Services
  • Credit Cards
  • Live Events
  • Cruise
  • Hotel Stays
  • Shopping & Retail
  • Airline
  • Leagues
  • Food & Beverage
  • Credit Cards
  • Live Events
  • Experiences
  • Hotel Stays
  • Shopping & Retail
  • Table Games
  • Slots
  • Sports Betting
  • Food & Beverage
  • Credit Cards
  • Live Events
  • Experiences
  • Hotel Stays
  • Shopping & Retail
  • Table Games
  • Slots
12
  • Mobile check-in
  • Digital key
  • Book a table
  • Browse shows and nightlife
  • MGM rewards tracking and access to perks
  • Personalized recommendations

BetMGM

  • MGM Rewards loyalty credits for every wager
  • Fast and easy withdrawal

Not Offered

Deficient:

  • Gift Cards & Catalog
  • Cash
  • Bingo

Gaming resort comparative loyalty program analysis (as of April 2022)

Loyalty ProgramTiersPartnershipsEarnBurnPoint Expiration PolicyMulti-Property ProgramMobile App FeaturesIntangible Value Creation Enablement

Stations Casino my Rewards Boarding Pass

  • Preferred (999 credits or less)
  • Gold (1,000 credits)
  • Platinum (40,000 credits)
  • President (100,000 credits)
  • Chairman (300,000 credits)
  • Credit cards
  • Cruise
  • food & Beverage
  • Credit Cards
  • Live Events
  • Amenities
  • Hotel Stays
  • Table Games
  • Slots
  • Bingo
  • Racing
  • Sports Betting
  • Food & Beverage
  • Experiences
  • Cash
  • Hotel Stays
  • Table Games
  • Slots
06
  • Create and access Boarding Pass on your phone
  • Follow players club account
  • Stay updated on daily giveaways and casino promotions
  • Calendar of live events and entertainment
  • Book hotel rooms, reservations, and amenities

Not Offered

Wynn Rewards

  • Red (0-6,999 tier credits)
  • Platinum (7,000-69,999 tier credits)
  • Black (70,000+ tier credits)
  • Food & Beverage
  • Shopping & Retail
  • Table Games
  • Slots
  • Food & Beverage
  • Amenities
  • Hotel Stays
  • Shopping & Retail
  • Table Games
  • Slots
12
  • View and book rooms, shows, nightlife, reservations, etc.
  • View your card balance details and benefits
  • Open a map of Wynn and Encore properties
  • View hotel and gaming promotions available
  • Receive push notifications
  • View upcoming room, show, and dining waitlist reservations on your itinerary
  • Toggle between Wynn and Encore Las Vegas and Encore Boston Harbor mobile apps

Not Offered

Deficient:

  • Car Services
  • Guest Feedback
  • Gift Cards & Catalog
  • Vacations
  • Online Gaming
  • Airline
  • Leagues

Integrated Resort X’s incumbent analysis

To survive, grow, or transform in today’s digital era, organizations must first have a strong pulse on their business ecosystem. Understand who the key incumbents in the industry are.

Business Target Market & Customer Product/Service & Key Features Key Differentiators Market Positioning

Organization

Integrated Resort X
  • Conventional tourists/vacationers
  • Corporate and business travelers
  • People with high purchasing power
  • Groups
  • Entertainment seekers
  • Local/regional high-rollers, penny slot players, etc.
  • Hotel rooms
  • Restaurant
  • Amenities: spa, gym, pool
  • Table games
  • Slot machines
  • Events
  • iGaming
  • Strong brand impact
  • High online presence
  • Reputation for quality
  • Dedicated to its products’ and services’ opulence and quality
Incumbents Hotel A
  • Conventional tourists
  • Corporate and business travelers
  • People with high purchasing power
  • Groups
  • Hotel rooms
  • Restaurant
  • Amenities: spa, gym, pool
  • Innovative technology landscape for customer-facing technology
  • Strong ESG (environmental, social, and governance
  • Strong commitment to multiple lodging options from moderate to premium prices
Regional Casino B
  • Local/regional high-rollers, penny slot players
  • Groups
  • Conventional tourists/vacationers
  • Table games
  • Slot machines
  • Restaurant
  • Optimal revenue per square footage
  • Impressive slot machines and table games
  • Horse and dog racing track
  • Dedication to all types of players, with 350,000 feet of gambling space
Integrated Casino Y
  • Entertainment seekers
  • Conventional tourists/vacationers
  • Corporate and business travelers
  • People with high purchasing power
  • Groups
  • Local/regional high-rollers, penny slot players, etc.
  • Hotel rooms
  • Restaurant
  • Amenities: spa, gym, pool
  • Table games
  • Slot machines
  • Events
  • eSports
  • Sports betting
  • More properties worldwide
  • Known for largest convention space in the area
  • Reputation for innovation
  • Focus on diversification in the gaming and hospitality industry

Integrated Resort X’s disruptor analysis

To survive, grow, or transform in today’s digital era, organizations must first have a strong pulse of their business ecosystem. Understand who the key disruptors in the industry are.

BusinessTarget Market & CustomerProduct/Service & Key FeaturesKey DifferentiatorsMarket Positioning

Organization

Integrated Resort X

Conventional tourists/vacationers

Corporate and business travelers

People with high purchasing power

Groups

Entertainment seekers

Local/regional high-rollers, penny slot players, etc.

Hotel rooms

Restaurant

Amenities: spa, gym, pool

Table games

Slot machines

Events

iGaming

Strong brand impact

High online presence

Reputation for quality

Dedicated to its products’ and services’ opulence and quality

Incumbents

Airbnb

All guest segmentation: travel type (business, leisure), demographic, geographical, behavioral

All host segmentation: accommodation type, demographic, geographic, rental preferences

Experience providers

Accommodation bookings

Listing management

Experience bookings

Experience management

No booking agents or front-desk receptionists required to book

Connects mass markets

Created communities via rating system, Airbnb-specific meetings, and ability to tailor experiences

Information-based offering that employs a totally digital channel for the market

Google/Facebook as Online Travel Agent (OTA) Engine

All guest segmentation: travel type (business, leisure), demographic, geographical, behavioral

Hotel room bookings

Restaurant bookings

Amenity/package add-ons

No booking agents or front-desk receptionists required to book

Connects mass markets

Monopoly over internet searches

Online Casino

People with high purchasing power

Digital gamblers

Local/regional high-rollers, penny slot players, etc.

iGaming

eSports

Sports betting

Convenient channel to gamble: no dress codes, no travel. Play and pay anywhere

Borderless, mobile-first casino

Crypto Casino

Fintech consumers

People with high purchasing power

Digital gamblers, mobile first

Younger demographics, primarily male

Crypto for slots, table games, jackpots

Accept cryptocurrencies as payments

Rely on blockchain distributed ledger

Fairer and open-sourced casino that allows the retention of anonymity

Determine what value your loyalty program creates

Value streams and value chains connect business goals to the organization’s value realization activities. They enable an organization to create and capture value in the marketplace by engaging in a set of interconnected activities. Loyalty programs create value by attracting, entertaining/servicing, and retaining guests (value stream) through the following loyalty program management and operation processes and activities (value chains):

This image contains a screenshot of a value stream showing different types of value your organization creates, and value chains that show the way your organization creates value

Value Streams

A value stream refers to the specific set of activities an industry player undertakes to create and capture value for and from the end consumer.

Value Chains

A value chain is a ”string” of processes within a company that interrelate and work together to meet market demand. Examining the value chain of a company will reveal how it achieves competitive advantage.

Each value chain has a stakeholder associated with it. This is the primary stakeholder that seeks to gain value from that value chain.

Visit GHRC’s Integrated Casino Industry Reference Architecture

Analyzing loyalty program value chain components

This image breaks down the various components of loyalty program value chains.

Prioritized value streams to be supported or enhanced

A loyalty program is a pivotal part of an organization as it affects all value streams: Attract Guests, Entertain/Service Guests, and Retain Guests. Consider both the human and business value generators to realize the true value a loyalty program can bring.

Business Value: Assess the value generators to the business, i.e. revenue dollars, enterprise value, cost, or differentiation (competitiveness).

Human Value: Assess the value generators to people, i.e. staff satisfaction, wellbeing, and social cohesion.

Value Stream

Evaluation of Value Stream

Attract Guests

  • Human value: Enabling employee productivity and efficiency through automation can improve the overall ability to attract guests.
  • Business value: Increasing the guest base requires being able to attract guests. Further, the potential for increased revenue and competitiveness lies with enrollment.

Entertain/Service Guest

  • Human value: Enabling employee productivity and efficiency through automation can improve the overall ability to entertain and service guests.
  • Business value: Encouraging active engagement leads to higher frequency and therefore higher value and more spend.

Retain Guests

  • Human value: Satisfaction of loyal guests can transform them into active advocates. This can be done by providing guest value through innovation.
  • Business value: Profit and growth are stimulated by retention since guest loyalty is a direct result of guest satisfaction. Also, retaining a loyal guest is often easier and less costly than attracting a new one.

Info-Tech Insight

Evaluating a loyalty program’s effect on all value streams will illustrate how important a loyalty program truly is to the business. In all value streams, the loyalty program will demonstrate many forms of human value and business value components, emphasizing the need for a digital loyalty strategy for value enablement.

Data & integration play an important role in digital loyalty enablement

Ensuring that the data the organization collects is accurate, maintained, usable, and integrated will help eliminate duplicate data and make it easier for the organization to make decisions, understand the guests, and enable a digital loyalty strategy.

A proper data and integration strategy is vital to the success of a digital loyalty strategy. Otherwise, the strategy may not meet guest expectations and may result in ineffective initiatives.

Data and integration are especially important for organizations that are looking to expand their loyalty programs to be seamless across multiple properties, channels, and products and services as well as to track and distribute points in real time.

To do their jobs, the marketing team needs data about their guests. Each of the following serves a distinct purpose and should be used in sequence to provide a consistent, personalized guest experience. Consider these platforms as you develop your digital loyalty program strategy:

Data warehouse/ mart

Stores enterprise data, is IT-driven and owned, and is designed to serve as a repository for analysis as a whole enterprise.

Customer data platform (CDP)

Interested only in guest data and is built for the needs of marketing and operated by marketing. CDP data can tell you each specific step that a customer has taken and their behaviors.

Customer Relationship Management (CRM)

For frontline customer-facing interactions where they can organize and manage customer profiles and activities. Data is limited to basic customer information and history of interactions.

This image contains two loyalty program value chains, enabled by data integration.

Visit Info-Tech’s Build a Data Integration Strategy blueprint

Measure the value of your digital loyalty strategy based on the individual processes you choose to prioritize

Processes

Objective

→KPI Metrics

Loyalty Program Management

Loyalty Program Management

Guest Profile Management

Accessibility and ability to successfully use data to segment out and identify accurate guest profiles (Profile/Segmentation Quality).

Customer Acquisition Cost, Usage, Time Spent

Loyalty Scheme Management

Based on guest profiles, flexibility and agility to design and develop loyalty schemes that engage the right customers.

Customer Lifetime Value, Active Engagement Ratio, Reward Redemption Rate, Customer Churn Rate, Reward Liability Rate

Loyalty Event Management

The ease of developing, designing, and coordinating loyalty events for high-value members.

Conversion Rate, Transaction Accuracy, Average Basket Size

Partner Management

Ability to successfully manage partnerships through collaboration as well as the number of partners engaged with and their contribution rate.

Engagement Ratio, Revenue Increase, Number of Partners, Number of Partner-Related Schemes, Sales Volume, Gross Margins via Partners

Loyalty Administration

Ability to maintain a flexible rules engine that allows for a complex network of rules and tiers with the goal of providing transparency to guests.

Customer Satisfaction Score – Survey Feedback (Education of Limitations), Customer Retention Rate, First-Time Resolution Rate

Loyalty Program Operations

Loyalty Program Operations

Enrollment

Guest attraction to loyalty program, and from there, usability and user-friendliness for guests to enroll in a loyalty program.

Enrollment Rate, Customer Acquisition Rate, Clickthrough Rate, Conversion Rate, Customer Attention, Frequency

Promotions & Incentives

Right guest, right time, right message, right channel.

Customer Lifetime Value, Active Engagement Ratio, Reward Redemption Rate, Customer Churn Rate, Reward Liability Rate

Member Service Integration

Ability for frontline staff to successfully support and service members.

Customer Lifetime Value, Customer Churn Rate, Customer Satisfaction

Transaction Processing

Ability to distribute points, rewards, and perks to the appropriate guests with speed.

Transaction Accuracy, Conversion Rate, Usability, Point Scoring

Behavior Tracking & Analysis

Ability to track and analyze loyalty program member behavior.

Customer Acquisition Cost, Customer Lifetime Value, Sentimental Analysis

Calculating KPI metrics

KPI Metric Definition Calculation
Customer Acquisition Cost Cost of winning a customer to purchase a product or service (Cost of sales + cost of marketing) / new customers acquired
Customer Lifetime Value Total worth to a business of a customer over the whole period of their relationship Average value of sale x number of transactions x retention time period
Active Engagement Rate Percentage of customers who are “active” in the program. For example, referring friends or redeeming rewards Number of active members / number of total program members
Reward Redemption Rate Measures how many points are being redeemed by members to see whether the program is engaging enough # of points spend on rewards / # of points issued
Customer Churn Rate Rate at which customers leave the loyalty program (Members at beginning of period - members at end of period) / members at beginning of period
Reward Liability Rate Cost to your company of the redemption of all outstanding loyalty points Outstanding points x cost per point x redemption rate
Conversion Rate Percentage of customers that convert to loyalty program members # of visitors that converted / total # of visitors
Average Basket Size Average amount spent by your loyalty members in one transaction Total value of transactions / number of transactions or sales
Enrollment Rate Percentage of customers that enroll in your loyalty program # of program members / total number of customers
Clickthrough Rate Percentage of people who click your loyalty program advertisements Number of clicks that your ad receives / number of times your ad is shown

A digital loyalty strategy impacts the business context

Integrated Resort X elicited a goals cascade to identify the organizational goals and initiatives and have mapped it back to the loyalty program capabilities to analyze its risks and impact.

Business Goals

Business Initiatives

Business Capabilities

This image describes the impact which a digital loyalty strategy has on the business context

Prioritized value chains and processes for transformation

By evaluating the individual processes within the value chain, you can identify opportunities for transformation. Based on extensive interviews and research, Info-Tech has evaluated the value chain processes based on the level of pain experienced by a stakeholder to accomplish that task and the financial impact that level of the process has on the loyalty program and, further, the organization. The individual processes that are prioritized for transformation will be considered as opportunities for transformation in this report.

This image contains a screenshot of two value chains, with the following datapoints numbered: 1. Guest profile management; 2. Loyalty Scheme Management; 3. Promotions & Incentives

1. Prioritized for Transformation:
Guest Profile Management

Financial Impact:

Cost to market loyalty, high-value retention

Pain Experienced:

Inaccuracy of customer segmentation and manual processes

The base/foundation of a digital loyalty program requires proper segmentation in order to open the doors to success in subsequent processes: building rules, characteristics, overall campaigns, and accurate personalization.

Opportunity for Transformation: Automation

Consider Guest Reinvestment as an Example
Your organization must ensure that it is not spending more than it should, prioritizing profitable guests rather than overservicing lower-level clients. When it comes to money and effort your organization expends to retain valuable customers, accurate customer segmentation through automation can help determine which guests your property should avoid, educate, encourage, or maintain.

To properly reinvest and focus on guests that are valuable and profitable, reducing the noise of unnecessary (and costly) guest outreaches, an organization that experiences high pain in this process must digitize the experience with software that segments customers based on all transactional and behavioral activities.

Encourage
HIGH Level of Profitability

Potentially loyal guests

  • Is a member of a number of loyalty programs
  • Needs to be encouraged through relationship marketing

Loyal Guests

  • Members of one loyalty program
  • CRM plays a vital role (Maintaining relations with key clients)
Maintain
LOW Level of Profitability

Bargain Hunters

  • Price Sensitive
  • Are on the lookout for a bargain
  • Very small chance they could become loyal guests

Frequent Guests

  • Price sensitive
  • Might be motivated if the advantages they could gain by becoming members of a loyalty programme were pointed out to them
Enable
Avoid

Tourism and Hospitality Management, 2013.

Case Study

Advanced Segmentation

Challenge

MetLife is a life insurance corporation that, just like other insurance companies, traditionally gleaned directional insights about their customers’ needs, attitudes, and behaviors solely through demographics. Because individual customers have become more sophisticated, the sole use of demographics becomes just a rough outline of who the customer is.

Solution

A better understanding of customers required a change in mindset. MetLife wanted to extract more segmentation data including demographic, firmographic, attitudinal, and need-type information. To do so, MetLife implemented advanced segmentation tools to automatically carry out cluster segmentation. Five segments came out of the automated tool: Young Achievers, Concerned Moms, Financially Mature, Ho Hum, and Solo Content.

Results

For the first time, MetLife was able to gain a refined view of who its customers were. These segments provide a new way to think about allocating resources in the pursuit of the “right” customers. This data-driven approach that allows the organization to focus on identifying the right customers targeted $800 million net annual savings through this technology that aimed to fuel increasingly robust data and analytical capabilities.

Harvard Business School, 2018.

2. Prioritized for Transformation:
Loyalty Scheme Management

Financial Impact:

Customer churn, cost to market loyalty

Pain Experienced:

Inflexibility of loyalty schemes and reliance on other teams

Although 76% of what drives engagement is the “experience,” organizations must still consider the 24% that makes up Earn + Burn. Organizations must consider the types of loyalty schemes to engage members or risk outstanding reward liability. Further, there needs to be constant earning and burning from your guests. Organizations have become out of alignment with customer desires, and that’s a failure. An organization would be violating ideals of loyalty if they are using it solely to generate repeat purchases. Organizations need to work to stay in their guests’ ideal budget range and instead use this as a place to build behavioral and attitudinal loyalty. The marketing department needs to stay creative and develop proofs of concept to engage their members. To optimize creativity, the marketing department needs flexibility and self-reliance.

Marketing departments need automation opportunities that streamline the loyalty scheme management process in a way that is flexible and requires little reliance on data and analytical teams. Further, robust analytics tools are needed to minimize churn and drastically reduce the kinds of notifications and campaigns that aren’t delivering any value, again without relying on data and analytical teams.

Opportunity for Transformation: Automation

Although 76% of what drives engagement is the “experience,” organizations must still consider the 24% that makes up Earn + Burn. Organizations must consider the types of loyalty schemes to engage members or risk outstanding reward liability. Further, there needs to be constant earning and burning from your guests. Organizations have become out of alignment with customer desires, and that’s a failure. An organization would be violating ideals of loyalty if they are using it solely to generate repeat purchases. Organizations need to work to stay in their guests’ ideal budget range and instead use this as a place to build behavioral and attitudinal loyalty. The marketing department needs to stay creative and develop proofs of concept to engage their members. To optimize creativity, the marketing department needs flexibility and self-reliance.

Marketing departments need automation opportunities that streamline the loyalty scheme management process in a way that is flexible and requires little reliance on data and analytical teams. Further, robust analytics tools are needed to minimize churn and drastically reduce the kinds of notifications and campaigns that aren’t delivering any value, again without relying on data and analytical teams.

Types of Rewards and Benefits Members Like According to the Merkle 2021 Loyalty Barometer Report

This bar graph contains the following data: Discounts - 70%; Free Products - 65%; Free Samples - 51%; Free Services - 48%; Chance-to-win - 28%; Surprises - 25%; Priority Services - Surprises - 25%; Members-Only Events - 18%

Merkle, 2021.

Case Study

Marketing Automation

Loyalty Scheme Management: Red Lion Hotel Corporation

Challenge

Red Lion Hotel (RLH) Corporation is a hospitality corporation that has struggled to scale processes for welcome, loyalty, and transactional marketing programs. Its disparate systems cause internal communication breakdowns and inconsistent messaging and branding, and its incomplete and inaccurate reporting processes have posed challenges when measuring engagement and efficacy.

Solution

The organization realized it needed a growth marketing automation platform that allowed it to meet complex guest messaging needs, including marketing, loyalty, and reservation transaction, based on multiple system integrations across eight franchised hotel brands. It needed to tailor its communications according to a multitude of criteria – including franchisee, brand, property type, clientele personas, regions, and more. The RLH team chose the Act-On Solution, leveraging its advanced segmentation and conditional logic to develop and send automated transactional, welcome, and loyalty campaigns. The company was also able to create unique templates to solve for the design and messaging complexities of ensuring consistency throughout the organization.

Results

  • RLH created time-saving templates that have resulted in saving 20 hours of manual design work each month.
  • RLH achieved email engagement rates between 45% and 60% since implementing the marketing automation platform:
    • Welcome triggered emails – 48%
    • All Loyalty Program triggered emails 37%
    • Transactional emails – 43%

Act-On, n.d.

3. Prioritized for Transformation:
Promotions & Incentives

Financial Impact:

Increased retention, lowered marketing cost

Pain Experienced:

Obsolete methods of guest communication

This area focuses on the execution of loyalty schemes and how these promotions and incentives are presented to guests. Gaming and hospitality technology is at the far end of obsolescence and very traditional. A majority still use direct mail as a primary way of communication. The idea that sending emails automatically makes a business “digital” is inaccurate. The objective is to move away from direct mail methods and email and toward digital marketing approaches such as push notifications and text messages.

Opportunity for Transformation: Hyperpersonalization

The reason for digital marketing is the enablement of hyperpersonalization. Without digital marketing, organizations cannot see data-driven insights, cannot personalize the message to the guest, and cannot meet guests where they want to be met in terms of communication. Further, organizations must bridge the data gap between the guest’s identity and their touchpoints. Considering personality, budget, and frustration holistically can successfully engage members and encourage retention.

85%

Percentage of casinos that communicate to their casino customers through mail.

84%

Percentage of casinos that see promotions as essential to meeting revenue.

GGB, 2020.

Case Study

Hyperpersonalization

Promotions & Incentives: GSN Games

Challenge

GSN Games is a leading provider of cross-platform entertainment, including social casino games and skill-based cash tournaments, with its top-grossing mobile game app Solitaire TriPeaks being downloaded by more than 8.4 million users. Due to the gaming industry’s immense revenue potential, competition is tough, and users have a ton of other games and companies vying for their attention. “We have tenured players looking for that new content and then we have a lot of new blood coming in,” said Ryan Pierce, Director of Marketing. An effective engagement strategy is critical for GSN Games.

Solution

GSN Games took advantage of the Airship solution with three key elements:

  • Automated, behavior-based push notifications
  • Personalized welcome messages
  • Health Check Dashboard to identify ineffective messaging and improve the user experience

Results

  • 20% higher retention rate for players receiving push notifications
    • Sending relevant information early on made a difference. GSN Games leveraged Airship to give gamers a gentle nudge to play where they left off or entice them with a new event to get them back into the app.
  • 10% increase in next-day return rate after migrating to Airship
    • Using behavior-based segmentation improved targeting. Players would get one of four different welcome messages depending on what they did on their first day in the app.
    • “It immediately started trending upwards for the first time in six months,” said Ryan Pierce, Director of Marketing.
  • 9% higher week-one retention for players who receive welcome notifications vs. those who don’t

Airship, n.d.

End of Phase:
Prioritized Processes for Transformation

We will see these prioritized processes for transformation in Phase 3 where we’ll journey map them to determine high-level opportunities.

This is an image of the value chains for Loyalty Program Management and Loyalty Program Operations. 1. Guest Profile Management - Opportunity for Automation; 2. Loyalty Scheme Management - Opportunity for Automation; 3. Promotions and Incentives - Opportunity for Hyperpersonalization.

Phase 2
Digitally Enabled Growth Opportunities

An industry digital strategy opportunity report

This phase will walk through the following activities:

  • Conduct horizon scan
  • Identify leapfrog ideas
  • Conduct value chain impact analysis

Horizon scanning

The gaming and hospitality industry is evolving

Horizon scanning is a systematic analysis of detecting early signs of future changes or threats.

Horizon scanning involves scanning, analyzing, and communicating changes in an organization’s environment to prepare for potential threats and opportunities. Much of what we know about the future is based around the interactions and trajectory of macro trends, trends, and drivers. These form the foundations for future intelligence.

Identify signals of change in the present and their potential future impacts.

Macro Trends

A macro trend captures a large-scale transformative trend that could impact your addressable market.

Trends

A trend captures a business use case of the macro trend. Consider trends in relation to competitors in your industry.

Drivers

A driver is an underlying force causing the trend to occur. There can be multiple causal forces, or drivers, that influence a trend, and multiple trends can be influenced by the same causal force.

Identifying macro trends

A macro trend captures a large-scale transformative trend that could change the addressable market. Here are some examples of macro trends to consider when horizon scanning for your loyalty program:

Talent Availability

Customer Expectations

Technological Landscape

Regulatory

System

Decentralized workforce

Personalization

AI & robotics

Market control

Hybrid workforce

Digital experience

Virtual world

Economic shifts

Diverse workforce

Data ownership

Ubiquitous connectivity,

Digital regulation

Skills gap

Transparency

Genomics

Consumer protection

Digital workforce

Accessibility

Materials (smart, nano, bio)

Global green

Multigenerational workforce

Identifying trends

Leverage GHRC trend reports to understand the art of the possible

A trend captures a business use case of a macro trend. Consider trends in relation to competitors in the industry.

Uncover important business and industry trends that can inform possibilities for technology innovation. Guestroom technology and casino floor technology can enable loyalty behaviors and, further, loyalty program opportunities.

Market research is critical in identifying factors external to your organization and identifying technology innovation that will provide a competitive edge. It’s important to evaluate the impact each trend will have in your organization and market.

GHRC Trend Exploration

Loyalty Trend Spotlights

  • Intangible Value Creation
  • Intangible Value Creation
  • Contactless Service
  • Contactless Service
  • WOW! Guest Experiences
  • Consumer Adaptive
  • Conversational Care
  • Brick & Click

Visit Info-Tech’s Future of Casino-as-a-Platform Trends Report

Visit Info-Tech’s Make the Case for a Room-as-a-Platform Initiative Trends Report

Identifying drivers

Loyalty trends must be scored against loyalty drivers

A driver is an underlying force that is causing the trend to occur. There can be multiple causal forces, or drivers, that influence a trend, and multiple trends can be influenced by the same causal force.

Guest value

  • Builds relationships by improving guest’s emotional involvement with the organization
  • Improves a guest’s social influence
  • Creates value-based advantages for the guest
  • Solves external challenges, e.g. lack of alternative suppliers due to significant market barrier

Brand impact

  • Enables first-to-market, unique marketing positioning, or competitive advantage improvement
  • Assists in accomplishing strategic priorities
  • Has psychological relevance, enhancing a firm’s image and building relationships

Operational excellence

  • Provides transparency in the flow of value to the guest
  • Empowers associates and promotes teamwork
  • Improves responsiveness in problem solving

Risk & resilience

  • Is a mechanism to reduce risks and increase business resilience
  • Mitigates and withstands rapid changes across the business and IT landscape
  • Secures guest information while protecting brand assets
  • Easily integrates with current technologies, projects, and strategies
  • Is readily available technology and has active vendor support and expertise

Business growth

  • Improves sales (increased sales volume, increased sales value)
  • Enables data collection (estimation of repeat purchase probability)

Info-Tech Insight

Examining loyalty-specific drivers will help to conceptualize and measure whether a trend could be an applied method to trigger and secure customer and business value for a loyalty program.

Loyalty trend spotlight:
Intangible value creation

  • For cryptocurrency, there’s more to value than a Bitcoin ATM on the casino floor. For NFTs, regulators and operators need to have a solid understanding of the value they can bring, which can be difficult for such a relatively young concept.
  • Implementing crypto and NFTs into a loyalty program could mean high participation rates and could make the whole experience both enjoyable and unique while driving a viral disposition for the brand.

Technology Opportunity: Blockchain Distributed Ledger

In a multibrand loyalty program scenario, a blockchain distributed ledger allows organizations, partnerships, and program members to intersect and interact in one system without compromising the value and enjoyment of the experience, enabling three opportunities:

  • The wallet offers a single and equal access to all programs carried out by partners who are involved in the network.
  • The token represents digital assets like points or vouchers that you can manage the usage of.
  • Smart contracts establish rules that allow the programmability of the tokens for the management of the entire network.

Technology Opportunity: Crypto & NFT Rewards

The traction that both crypto and NFTs are experiencing can be leveraged to reward active engagement in a loyalty program. The casino industry should fully embrace both by introducing cryptocurrency and NFTs as rewards.

A main benefit of implementing cryptocurrency in a loyalty program is the potential to reduce point liability. Providing more redemption options would act as a much-needed release valve for these balance-sheet pressures.

Business Growth

3

Risk and Resilience

1

Operational Excellence

1
Guest Value 3
Brand Impact 2

Macro Trend Affected: Virtual World

Case Study

Cryptocurrency Reward Incentives

Intangible Value Creation: Choice Hotels

Challenge

The crypto industry has been making strides to go mainstream, with many desiring to launch crypto token-based loyalty programs to get these digital assets into the hands of the general public. Choice Hotels is a company with a strong emphasis on a customer-first approach, always looking for ways to better serve the changing needs of today’s consumers. One of these changing needs is the increased desire for digital assets.

Solution

Choice Hotels partnered with Bakkt, a digital asset marketplace. This partnership allows loyalty point holders of the hotel to convert their points into cash on the Bakkt app and then convert that cash to Bitcoin, transfer to friends, or use it to purchase everyday goods and services online or in store.

Results

Choice participating in the cryptocurrency world opens its doors to the digital ecosystem. Even though points aren’t automatically converted to Bitcoin (not yet an available innovation), Choice is still an early adopter and can be seen as a disruptor in the space. Sheela Zemlin, Bakkt’s Chief Revenue Officer, states, “By working with Choice Hotels, Bakkt is bringing tremendous value to its millions of customers by unlocking new redemption opportunities for Choice Privileges members to enjoy their rewards points in day-to-day life or even to purchase bitcoin.”

Business Wire, 2021.

Loyalty trend spotlight:
Contactless service

  • Since the start of the pandemic, COVID-19 regulations and confidence levels have forced organizations to alter how they operate, requiring them to invest in high-tech/low-touch solutions.
  • Organizations began to realize that these types of solutions were future-forward and would have a place in the long run. Although the pandemic would end, the consumer desire for convenience, flexibility, and control of the environment would stay.

Technology Opportunity: RFID Loyalty Cards

  • RFID loyalty cards are particularly beneficial for guests that still want to use physical loyalty membership cards. When organizations decide to go mobile with a digital wallet, it is important to still provide an alternative method for those who are not tech savvy.
  • With the RFID chip containing the guest’s identification data (name, address, date of birth, etc.), it can enable an enhanced guest experience on property for both casinos and hotels by allowing for touchless loyalty point collections.

Technology Opportunity: Facial Recognition

  • Facial recognition can facilitate the activation of loyalty accounts for members without the need to swipe a card or enter identification information, making loyalty a whole new experience: agile, contactless, and immediate.
  • Further, the objective of facial recognition in a loyalty program is to personalize the experience, especially for high-value, high-spend members who want to be treated as VIPs.

Business Growth

3

Risk and Resilience

3

Operational Excellence

4
Guest Value1
Brand Impact1

Macro Trend Affected: Digital Experience

Case Study

Facial Recognition Kiosks

Contactless Service: Caliburger

Challenge

John Miller, CEO of Cali Group, states that they are “constantly struggling with labor cost issues in the United States.” It was the company’s objective to determine how they can reduce labor costs while still making the restaurant operate efficiently and provide a good guest experience.

Solution

Cali Group piloted a face-based self-service kiosk in the Caliburger Pasadena location so customers could log into their loyalty accounts. It was met with positive customer reactions, which allowed the company to quickly deploy face-based recognition for transactional payments where they pay with a “smile” in the same location.

Results

Its success in one property encouraged an AI rollout of this face payment technology to other locations including Seattle, Maryland, and Washington. The kiosk solution has helped the company reduce labor costs and has also given Caliburger the ability to track customer preferences and habits through its loyalty program connection. Currently, customers have to enter their three-digit CVV security code to process transactions, but as facial recognition becomes more accurate, the next objective is to eliminate this need for a security code.

CNBC, 2018.

Loyalty trend spotlight:
Conversational care

  • For many casino and hotel organizations, loyalty program member service channels are limited to call, email, and fax.
  • Organizations should always be “on” and available to customers to provide the convenience factor. To accomplish this, your loyalty program should be able to streamline and improve the customer experience by eliminating needless emails, calls, or scrolling.
  • Your organization should automate the business, all while being reactive. Step up social customer care through social listening, gathering member information (issues, complaints, and feedback) to make better decisions. Offering recommendations, resolving questions, and optimizing experiences based on customer feedback could reduced churned members.

Technology Opportunity: Chatbot

  • With loyalty program communication methods largely traditional in the industry, a chatbot can solve the inefficiencies that call, email, and fax have.
  • Although a simple technology, its nature of automation provides guests with convenience and speed in finding answers to their questions.

Technology Opportunity: Intelligent Call Routing

  • Calls as a communication method will not go away, but organizations can automate parts of the process with intelligent call routing.
  • This technology can consider both agent data (personality and skills) and caller data (value and historical inquiries) to match each loyalty program member to the right agent, which will reduce call duration and wait times while increasing customer satisfaction.

Business Growth

2

Risk and Resilience

2

Operational Excellence

3
Guest Value3
Brand Impact2

Macro Trend Affected: Accessibility

Case Study

Rose the Chatbot

Conversational Care: The Cosmopolitan of Las Vegas

The Cosmopolitan wanted to improve and advance its website, Identity Membership & Rewards program, and methods of communication to make accessibility easier for their guests and to deliver a personalized experience. To accomplish this, the Cosmopolitan worked with their digital agency, R/GA Chicago, and introduced mischief-making chatbot Rose in January 2017.

Results

Upon launch, Rose became a success:

  • The chatbot answered 80% of guest questions automatically.
  • Guests who used Rose were 33% more satisfied with their stay.
  • Guests who used Rose spent 30% more while on property.

Because of her success, a year later the resort invested more into the solution by integrating an AI and natural language processing–based platform so she can answer guest questions even quicker, understand context, and read sentiment. Further, the company connected Rose to the Cosmopolitan’s casino loyalty platform where she can streamline member data and automatically tell the guest their loyalty profile information: number of points, tier level, how many points are needed to reach the next tier, current offers, etc.

Prioritized trends

A cross-industry holistic view of trends.

Visualize emerging trends and prioritize action.

Moving from horizon scanning to action requires an evaluation process to determine which trends can lead to growth opportunities. First, we need to make a shortlist of trends to analyze. Next, we need to evaluate the shortlisted opportunities by a set of criteria: timing, relevance, and impact.

Timing

The estimated time to disruption this trend will have for your industry. Assess whether the trend will require significant developments to support its entry into the ecosystem, your organization’s budgetary restrictions, and any regulatory challenges.

Relevance

The relevance of the trend to your organization. Does the trend fulfill the vision or goals of the organization? What are your guests’ needs and expectations with consideration to your classification (market type, target segment, location, service level)? Will the technology satisfy the needs of your business stakeholders?

Impact

The degree of impact the trend will have on your industry. A trend with high impact will drive new business models, products, or services. Will the implementation increase the viability, applicability, and impact for the organization more than originally intended?

Use the MoSCoW analysis for prioritization

An assessment based on time, relevancy, and impact will inform the overall effect on the industry and specific organization. This information, when contrasted with the concept of a MoSCoW-based relevance-to-impact analysis, forms an enhanced decision-making framework that can be used to determine trend prioritization.

This is a screenshot of the MoSCoW Analysis tool.

Ranked trends based on needs:

  1. Signal you MUST ADDRESS
  2. Signal you SHOULD ADDRESS
  3. Signal you SHOULD ADDRESS
  4. Signal you COULD ADDRESS

Look to implement these trends into a digital loyalty strategy

HR = High Relevance

LR = Low Relevance

HI = High Impact

LI = Low Impact

Vetting trend opportunities

To determine which opportunities to act on, use a prioritization framework that enables decision makers to see the timing, relevance, and impact the opportunities pose. Leverage the criteria to prioritize the trends to purse.

Trend Technology Timing (Y/N) Impact (1-4) Relevance (1-4)
Intangible Value Creation 1 Blockchain Distributed Ledger Y – Regulatory Concerns - -
2 Crypto/NFT Rewards Y – Regulatory Concerns - -
Contactless Service 3 RFID Loyalty Cards N 3 2
4 Facial Recognition N 4 4
Conversational Care 5 Chatbot N 4 3
6 Intelligent Call Routing N 2 2

Deprioritize technology that has a timing, regulatory, or budgetary conflict

This is an image of a MosCow Analysis with the number 3 in the LR/HI box, 4 & 5 in the HR/HI box, and 6 in the LR/LI box.

Funnel technologies into leapfrog ideas

Turning trends into loyalty program growth opportunities

Leapfrogging takes place when an organization introduces disruptive innovation into the market and sidesteps competitors who are unable to mobilize when responding to the opportunities. To thrive in the digital age, your loyalty program must innovate big, leverage internal creativity, and prepare for flexibility.

Dealing with trends provides the basis for developing the future orientation of the organization. However, being aware of a trend is one thing; developing strategies for response is another.

To identify the impact the trend has on the organization, consider the four areas of growth strategies for the organization:

  1. New Guests: Leverage the trend to target new types of loyal guests for the program.
  2. New Markets: Enter or create new markets by applying the loyalty program’s existing products or services to different problems.
  3. New Model: Adjust the loyalty program model to capture a change in how the program delivers value and how it reduces cost.
  4. New Product or Service Offerings: Introduce new products/services to the loyalty program.

Opportunities

  1. Contactless Service: Facial Recognition
  2. Conversational Care: Chatbot

Info-Tech Insight

A systematic approach to leapfrog ideation is one of the most critical ways in which your organization can build the capacity for resilient loyalty program innovation.

Digital loyalty program leapfrog ideas

Trend New Customer New Market New Business Model New Product or Service
What trends pose a high, immediate impact to the organization? Target new types of loyal guests for the program. Enter or create new markets by applying the loyalty program’s existing products or services to different problems. Adjust the loyalty program model to capture a change in how the program delivers value and how it reduces cost. Introduce new products/services to the loyalty program.
4 Contactless Service: Facial Recognition Target uncarded guests by identifying new visitors and determine ways to increase conversion rates. Use facial recognition for various lines of business: food & beverage, hotel, casino, etc. Deliver frictionless service. Activation of loyalty accounts and activities through contactless technology
5 Conversational Care: Chatbot Accelerate guest acquisition through personalized, on-demand communication. Expand into the e-commerce space. Guests can communicate with the organization on their own terms. New levels of support services for loyalty program members

Value chain analysis

Identified implications of strategic growth opportunities to the value chains

As we identify and prioritize the opportunities available to our loyalty program, we need to assess their impacts on value chains. Does the opportunity directly impact an existing value chain? Or does it open us to the creation of a new value chain?

The value chain perspective allows an organization to identify how to best minimize or enhance impacts and generate value.

As we move from opportunity to impact, it is important to break down opportunities into the relevant pieces so we can see a holistic picture of the sources of differentiation.

This image contains the same two loyalty program management value chains found earlier in this blueprint

Contactless Service – Facial recognition
value chain analysis

This image contains: 4. Contactless service: Facial regocnition - Value streams, and the loyalty program operations value chain. Holistically, the loyalty program operations value chain ins impacted by the contactless service opportunity

*This opportunity will be journey mapped in Phase 3

Greatest Risks

Complexity

Key Benefits

Dependencies

Revenue Impact

  • Guests that either are less inclined toward pandemic precautions or simply like staff interactions will not enjoy protocols taken to reduce these interactions.
  • Consider comfort levels, security, and privacy of guests as contactless technologies are implemented.
  • Existing property architecture may need to be adapted or replaced to accommodate contactless.
  • Transparency is key for guest trust initiatives because it shows that your organization is trustworthy.
  • Contactless technology gives operations the ability to do more with less staff.
  • Its adoption can provide a frictionless experience in all areas of a guest’s stay on a journey map.
  • Rely more on a powerful network infrastructure.
  • Use Internet of Things devices to enable contactless options.
  • Software and hardware enabled
  • Primary role of contactless technology is to adapt to guest confidence levels and provide convenience, which can help the organization improve satisfaction and retention.

Conversational Care – Chatbot value chain analysis

This image contains: 5. Conversational Care: Chatbot. Value streams, and the Conversational Care operations value chain. The conversational care opportunity provides us with a new value chain to be created

*This opportunity will be journey mapped in Phase 3

Greatest Risks

Complexity

Key Benefits

Dependencies

Revenue Impact

  • Unhuman or underdeveloped artificial intelligence can become uncomfortable for members because it’s too basic and robotic.
  • Complex processes to automate and make protocols of.
  • Automated and asynchronous customer support
  • Democratized access to all channels
  • Social listening
  • Gather meaningful feedback to pivot and refine content
  • Uncover upselling and cross-selling through chatbots
  • IoT devices to enable conversational care options
  • Software and hardware enabled
  • Primary role of conversational commerce is to provide member convenience, which can help the organization improve satisfaction and retention.

End of Phase:
Prioritized Leapfrog Ideas

We will see these prioritized leapfrog ideas in Phase 3 where we’ll journey map them to determine high-level opportunities.

This image contains two Value chains: 4. Contactless Service; and 5. Conversational Care. These will be discussed further in Phase 3.

Phase 3
Transformed Fan Journeys

An industry digital strategy opportunity report

This phase will walk through the following activities:

  • Identify stakeholder personas and scenarios
  • Conduct journey maps
  • Identify projects

Identifying stakeholder personas and journey scenarios

From value chain to journey scenario

Stakeholder personas and scenarios help us build empathy toward our customers. They help us step into the shoes of a stakeholder and relate to their experience to solve problems or understand how they experience the steps or processes required to accomplish a goal.

Together, these form a valuable basis for stakeholder Stakeholder personas and scenarios help us build empathy toward our customers. They help us step into the shoes of a stakeholder and relate to their experience to solve problems or understand how they experience the steps or processes required to accomplish a goal.

Together, these form a valuable basis for stakeholder journey mapping. A journey-based approach helps an organization understand how a stakeholder moves through a process and interacts with the organization in the form of touchpoints, channels, and supporting characters. By identifying pain points in the journey and the activity types, we can identify opportunities for innovation and automation along the journey.

mapping. A journey-based approach helps an organization understand how a stakeholder moves through a process and interacts with the organization in the form of touchpoints, channels, and supporting characters. By identifying pain points in the journey and the activity types, we can identify opportunities for innovation and automation along the journey.

A stakeholder scenario describes the situation the journey map addresses. Scenarios can be real (for existing products and services) or anticipated.

A stakeholder persona is a fictitious profile to represent a guest, guest segment, or internal end user. Creating this persona helps you understand who your guests really are and why they are using your service or product.

Learn more about applying design thinking methodologies

From Phase 1:
Identified Stakeholder Scenarios To Map

For your digital loyalty program strategy, leverage the existing and opportunity value chains identified in phase 1 for journey mapping.

In Phase 1, we identified three existing value chain processes to be transformed.

This image contains the value chains found in Phase 1 of this blueprint, with the following datapoints highlighted: 1. Guest Profile Management; 2. Loyalty Scheme Management; 3. Promotions & Incentives

The next step is to develop journey maps for these prioritized Phase 1 processes.

  1. Journey Map #1 – Stakeholder Scenario: Guest Profile Management Process
    • Your stakeholder persona is an employee of the marketing department.
    • The opportunity is automation.
  2. Journey Map #2 – Stakeholder Scenario: Loyalty Scheme Management Process
    • Your stakeholder persona is an employee of the marketing department.
    • The opportunity is automation.
  3. Journey Map #3 – Stakeholder Scenario: Promotions & Incentives Process
    • Your stakeholder persona is a guest.
    • The opportunity is hyperpersonalization.

From Phase 2:
Identified Stakeholder Scenarios To Map

For your digital loyalty program strategy, leverage the existing new and opportunity value chains identified in phase 2 for journey mapping.

In Phase 2, we identified two new leapfrog ideas.

This image contains the value Chains for 4. Contactless Service, and 5. Conversational Care.

The next step is to develop journey maps for these prioritized Phase 2 leapfrog ideas.

  1. Journey Map #4 – Stakeholder Scenario: Contactless Service
    • Your stakeholder persona is a guest.
    • The opportunity is adding facial recognition to the loyalty program.
  2. Journey Map #5 – Stakeholder Scenario: Conversational Care
    • Your stakeholder persona is a guest.
    • The opportunity is adding a chatbot to the loyalty program website.

Transforming these scenarios can provide opportunities to solve the omnichannel challenge

The basic definition of omnichannel is the extension and seamlessness of communications and offerings across channels. Omnichannel is enabled through integration where all channels are synced at the back end. However, an omnichannel approach is more than just expanding customer touchpoints from offline to online. This is just the foundation. Organizations are challenged more by fragmented data and analysis and, further, the actual content that is being highlighted in an omnichannel approach and how it engages and impacts the customer.

An optimal omnichannel loyalty program involves the following components, all of which can be enabled by the opportunities that this report highlights:

  • Technology for seamless customer experience that provides ways to engage and improve customer experience while increasing loyalty and boosting sales
  • Data-driven insights to make smarter decisions and have a better understanding of loyal customers
  • Customized offerings, providing guests with hyperpersonalized relevant offers and recommendations

Moengage, 2021.

5 Major Omnichannel Challenges

  1. Ineffective Content Strategy
  2. Improper Utilization of User Data
  3. Isolated Analytics Measurement
  4. No Action on New Findings
  5. Ineffective Marketing Strategy

Internal loyalty stakeholder personas

Consider your organizational structure to help create internal end-user personas.

Loyalty In-Scope – Example

Consider the following illustrative roles that are impacted by the efficiency of loyalty program processes:

Data Scientist
Process:
Guest Profile Management
Uses data science methods and techniques to segment loyalty members into actionable clusters and can suggest loyalty program strategies based on analytics.

Loyalty Campaign
Manager
Process:
Loyalty Scheme Management
Develops, designs, deploys, and enhances loyalty campaigns and schemes in support of the loyalty program’s objective to increase membership engagement and spend.

Casino Host
Process:
Member Experience Integration
Uses existing guest data and loyalty offers to understand customer needs, which can turn gamblers into loyal, repeat customers and ensures a positive guest experience.

Loyalty Program Administrator
Process:
Loyalty Administration,
Partnership Management
Provides loyalty program support by carrying out clerical tasks including partnership management (contracts, loyalty terms, etc.) and administrative duties (program rules, promotions and incentives, etc.)

Director of Special Events
Process:
Loyalty Event Management
Responsible for attendee management requirements and the coordination of special events for loyalty members, including registration, attendee list management, etc.

Hotel Front Desk Staff
Process:
Member Experience Integration
Uses existing guest data and loyalty offers to understand customer needs, which can turn guests into loyal, repeat customers and ensures a positive guest experience.

Info-Tech Insight

Depending on the structure of your casino or hotel, there are various ways to organize data science in the marketing department. Consider whether the data science team in your organization is a decentralized, centralized, or hybrid model and if it will impact your journey map.

Hotel guest stakeholder personas

There are five different hotel guest segments that exist that can help create guest personas

Family Traveler

  • Boomers, millennials, and multigenerational families who love travelling

Digital Nomad

  • A remote worker who can work from anywhere if there is a broadband connection or a connected traveler who relies on social media and other internet services
  • Does not arrive in a big group
  • Avoids hotels with slow or unreliable Wi-Fi
  • Likes to socialize with other people in communal areas

Affluent Traveler

  • Prepared to pay for an exclusive experience, demanding first-class amenities and services
  • Tends to research their trip and plan what they want to do
  • Most affluent travelers are seniors
  • More than three-quarters have spouses

Conventional Tourist

  • A casual traveler who books holidays several times a year when they can get the time off work
  • Does not typically travel alone
  • Usually accompanied by their partners, relatives, or friends
  • Enjoys visiting famous tourist attractions; also enjoys relaxing experiences to rest and recharge

Business Traveler

  • Purpose driven (to work)
  • Follows a daily routine of meetings, meals, and exercise/rest

Info-Tech Insight

Run a survey to understand who your hotel guest segments are so that your business can develop a stronger picture of who they are and what they are seeking to gain from the organization while considering your hotel’s service level.

Mews, 2021.

Protel, 2021.

Casino guest stakeholder personas

There are seven different guest segments that exist that can help create guest personas

Mr. High Roller

  • High spender, high income
  • Very frequent traveler with over ten trips a year, traveling for business and pleasure
  • Nonmembers but satisfied
  • Predominantly male

Elder Elite

  • Elite loyalty members who take the most trips among members
  • Sufficiently satisfied, not optimistic
  • Oldest, predominantly male, high income

Unmoved Member

  • Regular loyalty member but takes shorter trips
  • Lowest satisfaction among all members but inclined to recommend and return

True Blue

  • Regular loyalty member that would pay premium for room
  • Highest satisfaction among members and most likely to recommend and return

Happy-Go-Lucky

  • Happy nonmember that would pay premium for room
  • Highly satisfied with service and likely to recommend and return (and sometimes do take multiple trips)
  • Young, average income, and optimistic about gambling

Ice Queen

  • Hard to please nonmember that relies on reviews for selection
  • Not satisfied with service and unsure about returning or recommending
  • Young, predominantly female, average income, and pessimistic about gambling

Accidental Traveler

  • Nonmember, least frequent traveler
  • Youngest, average income
  • Fairly optimistic and satisfied, say they may return but seldom do

Info-Tech Insight

Run a survey to understand who your casino guest segments are so that your business can develop a stronger picture of who they are and what they are seeking to gain from the organization while considering whether your casino focuses on a destination or regional market.

USFCA, 2010.

Building stakeholder journey maps

The journey-based approach will help the organization understand how a guest or internal end user moves through a process and interacts with the organization in the form of touchpoints, channels, and supporting characters

Journey Activity

The journey activity refers to the steps taken to accomplish a goal.

Touchpoints

Touchpoints are the points of interaction between a stakeholder and the organization.

Metrics

Touchpoints are the points of interaction between a stakeholder and the organization.

Nature of Activity

Nature of activity refers to the type of task the journey activity captures. There are four main task types:

  • Routine Manual: Repeatable tasks that rely on physical work, e.g. manufacturing, production – Prioritize for automation (1)
  • Routine Cognitive: Repeatable tasks that rely on knowledge work, e.g. sales, administration – Prioritize for automation (2)
  • Nonroutine Cognitive: Infrequent tasks that rely on knowledge work, e.g. driving, fraud detection – Prioritize for automation (3)
  • Nonroutine Manual: Infrequent tasks that rely on physical work, e.g. food preparation – Not mature for automation

Key Moments & Pain Points

Key moments and pain points refer to the emotional status of a stakeholder at each stake of the customer journey.

Opportunities

An opportunity refers to the initiatives or projects that should address a stakeholder pain and should also produce a demonstrable financial impact – whether direct (i.e. cost reduction) or indirect (i.e. risk mitigation).

1. Guest Profile Management Process Persona: Data Scientist

Stakeholder Demographics

Name: Trisha

Age: 35

Occupation: Data Scientist

Location: Las Vegas, Nevada

Pains

What are their frustrations, fears, and anxieties?

  • Department lacks automation and uses Excel to extract guest profile transactional and activity data when building guest segments and determining campaigns for those segments.
  • Marketing relies on analytics team to develop, monitor, and report customer segmentation but is impatient with the speed of reports and would prefer a more convenient option.

What do they need to do?

What do they want to get done? How will they know they are successful?

  • Develop and refine customer segmentation through an agile and accurate approach as the baseline for loyalty execution.

Gains

What are their wants, needs, hopes, and dreams?

  • Using digital tools that would allow for an automated process
  • Accurate guest segmentation
  • Ability for segment of one

1. Guest Profile Management
Journey Statement

This image contains the prioritized value chain guest profile Management

Stakeholder Journey Statement

As a data scientist, I want guest segmentation to go beyond generic attributes so that when we create loyalty campaigns, we can incorporate deep, personal insights that have been constructed from this process.

1. Guest Profile Management Journey Output

Stakeholder: Data Scientist (Trisha)

Journey Statement: As a data scientist, I want guest segmentation to go beyond generic attributes so that when we create loyalty campaigns, we can incorporate deep, personal insights that have been constructed from this process.

Journey Activity

Pre-Processing: Gather Data Modeling: Analyze and Develop Segmentation Evaluation: Refine Segmentation Transformation: Build Report

Touchpoints

  • Initial cleansing and transforming of data
  • Data from multiple sources/touchpoints
  • Statistical program
  • Statistical program
  • Output data

Metrics

Routine Cognitive

Nonroutine Cognitive

Nonroutine Cognitive

Routine Manual

Nature of Activity

  • Time to value
  • Data quality
  • Time to analyze research data
  • Time to identify target audience
  • Segmentation quality
  • Time to value
  • Data value

Key Moments & Pain Points

  • Triggered by manually extracting lists
  • Data silos, data quality
  • Human bias, assumptions from manual process
  • Accuracy of segmentation
  • Updates to profiles means constant manual changes
  • Work to relabel customers that have been incorrectly segmented
  • Understand findings in marketing language
Opportunities
  • Implement a customer data platform (CDP) for unified multisourced data
  • Unsupervised machine learning–based segmentation to investigate clusters
  • AI automation for updates with little need for human intervention
  • Data visualization tool, i.e. dashboard

2. Loyalty Scheme Management Process Persona: Loyalty Campaign Manager

Stakeholder Demographics

Name: Naomi

Age: 32

Occupation: Loyalty Campaign Manager

Location: Las Vegas, Nevada

Pains

What are their frustrations, fears, and anxieties?

  • Must collaborate with analytics team to monitor and report post-deployment campaign performance but is impatient with speed of report.
  • Must collaborate with IT team to develop and design campaigns where coding is necessary.

What do they need to do?

What do they want to get done? How will they know they are successful?

  • Develop, design, and deploy loyalty schemes in an agile and flexible way with constant refinement for ultimate performance.

Gains

What are their wants, needs, hopes, and dreams?

  • Exploit creativity to create new features and schemes
  • Iterate on campaigns and develop proofs of concept
  • Use digital tools to enable self-reliance

2. Loyalty Scheme Management
Journey Statement

This image contains the prioritized value chain for Loyalty Scheme Management

Stakeholder Journey Statement

As a loyalty campaign manager, I want to design flexible loyalty schemes so that it’s faster and easier to react to guest action.

2. Loyalty Scheme Management Journey Output

Stakeholder: Loyalty Campaign Manager (Naomi)

Journey Statement: As a loyalty campaign manager, I want to design flexible loyalty schemes so that it’s faster and easier to react to guest action.

Journey Activity

Pre-Processing: Gather Data Design Loyalty Scheme Test Loyalty Scheme Refine/Iterate Loyalty Scheme Deploy Loyalty Scheme Analyze Success

Touchpoints

  • Excel
  • Loyalty Management System
  • Loyalty Management System
  • Loyalty Management System
  • Statistical Program
  • Loyalty Channels
  • Loyalty Management System
  • Loyalty Management System
  • Loyalty Channels
  • Loyalty Management System

Metrics

Routine Cognitive

Nonroutine Cognitive

Nonroutine Cognitive

Nonroutine Cognitive

Routine Manual

Nonroutine Cognitive

Nature of Activity

  • Time to value
  • Time to value
  • Time to value
  • Customer satisfaction
  • Time to value
  • Customer satisfaction

Key Moments & Pain Points

  • Repeated manual work
  • Triggered by manually extracting lists
  • Rely on IT for HTML, SQL coding
  • A/B testing
  • Go back to IT for HTML, SQL coding
  • No existing critical pain points; process already automated
  • Wait on data scientist for reporting
Opportunities
  • Setting custom automation workflow
  • Drag-and-drop functionality
  • AI testing
  • Drag-and-drop functionality
  • Analysis through BI/dashboard

3. Promotions & Incentives Process Persona: Unmoved Member

Stakeholder Demographics

Name: Jack

Age: 34

Occupation: Mortgage Advisor

Location: Chicago, Illinois

Pains

What are their frustrations, fears, and anxieties?

  • Lower satisfaction among all loyalty program members because:
  • Promotions and incentives are basic, generalized, and not based off what he wants to do and see.
  • He receives promotions and incentives only after the fact, when he has already left the property.
  • He primarily receives offerings in the mail even though he has a mobile app.

What do they need to do?

What do they want to get done? How will they know they are successful?

  • He wants to receive personalized promotions and incentives for various gaming and non-gaming activities that the resort offers.

Gains

What are their wants, needs, hopes, and dreams?

  • Inclined to recommend and return if the loyalty program:
  • Offers personalized content so he’s actively engaged with the organization.
  • Provides this content pre-, during, and post-journey.
  • Provides content on the mobile app, which is his preferred method.

3. Promotions & Incentives
Journey Statement

This image contains the prioritized value chain for Promotions and Incentives

Stakeholder Journey Statement

As an unmoved loyalty program member, I want promotions and incentives that are hyperpersonalized to my preferences in order to feel inclined to recommend and return.

3. Promotions & Incentives Journey Output

Stakeholder: Guest – Unmoved Member

Journey Statement: As an unmoved loyalty program member, I want promotions and incentives that are hyperpersonalized to my preferences in order to feel inclined to recommend and return.

Journey Activity

Gaming ExperienceDecision to LeaveDecision to LeaveEngaged: Return to Play

Touchpoints

  • Slot machines
  • Table games
  • Property exits
  • Mobile device
  • Org. app
  • Mobile device
  • Org. app
  • Slot machines
  • Table games

Metrics

Nonroutine Manual

Nonroutine Manual

Nonroutine Cognitive

Nonroutine Manual

Nature of Activity

  • Time on device
  • Slot coin-in
  • Table game drop
  • Guest satisfaction
  • Guest satisfaction
  • Customer lifetime value
  • Reward redemption rate
  • Guest satisfaction
  • Customer lifetime value
  • Active engagement rate

Key Moments & Pain Points

  • Fragmented, siloed data
  • Beacons show member is leaving
  • Direct-mail marketing will not help in this moment
  • Message is impersonal, generalized
  • Decision to play could be affected by privacy concerns
  • Return to play encourages gambling
Opportunities
  • Gather data in customer data platform (CDP)
  • Push notification on mobile device for mobile-exclusive offers
  • Implement a personalization engine
  • Intelligent member segmentation
  • Privacy transparency – features to manage consent and permission
  • Responsible gaming monitoring

4. Contactless Service Process Persona:
Affluent Traveler

Stakeholder Demographics

Name: Joe

Age: 64

Occupation: Fraud Investigator

Location: Baltimore, Maryland

Pains

What are their frustrations, fears, and anxieties?

  • As an avid traveler, he has grown to be impatient and wants to speed up processes.
  • Staff never recognizes him as an elite loyalty member until they input his loyalty ID during check-in.

What do they need to do?

What do they want to get done? How will they know they are successful?

  • As an elite loyalty member that takes many trips and is prepared to pay for an exclusive experience, he expects first-class luxury service where the organization/brand knows and recognizes him.

Gains

What are their wants, needs, hopes, and dreams?

  • For staff to know and recognize him as an elite member without identification needed
  • Streamlined processes so he’s not constantly waiting

4. Contactless Service
Journey Statement

This image contains the prioritized value chain for loyalty program operations

Stakeholder Journey Statement

As an affluent traveler, I want an on-property experience where the organization automatically recognizes me as a VIP loyalty member.

4. Contactless Service Journey Output

Stakeholder: Guest – Affluent Traveler

Journey Statement: As an affluent traveler, I want an on-property experience where the organization automatically recognizes me as a VIP loyalty member.

Journey Activity

Gaming ExperienceRoom AccessRestaurant ArrivalRestaurant Experience Pay for Meal

Touchpoints

  • Valet
  • Front desk
  • Hotel room
  • Mobile device
  • Restaurant host station
  • Restaurant table
  • Restaurant table
  • Payment machine

Metrics

Nonroutine Cognitive

Nonroutine Cognitive

Nonroutine Cognitive

Nonroutine Cognitive

Routine Manual

Nature of Activity

  • Guest satisfaction
  • Guest satisfaction
  • Time to value
  • Guest satisfaction
  • Guest satisfaction
  • Customer lifetime value
  • Guest satisfaction
  • Time to value

Key Moments & Pain Points

  • As a VIP-status guest, he wants to be recognized automatically.
  • Must manually check in to claim key card for room access
  • As a VIP-status guest, he wants to be recognized automatically
  • Staff search name manually and react
  • Unhappy with his meal
  • Transaction machine payment
  • Would have to show loyalty program card
Opportunities
  • Automatic facial recognition for member identification
  • Integrate facial recognition for door locks
  • Automatic facial recognition for member identification
  • Facial recognition identifies emotions and automatically adapts
  • Touchless point collection
  • Automatic charge to room through face association

5. Conversational Care Process Persona:
Digital Nomad

Stakeholder Demographics

Name: Shaun

Age: 26

Occupation: Project Manager

Location: Los Angeles, California

Pains

What are their frustrations, fears, and anxieties?

  • He does not want to have to call a phone number or use fax, mail, or email to receive support regarding the loyalty program.
  • He does not want to advocate or support an organization that doesn’t respond to or solve complaints and feedback.

What do they need to do?

What do they want to get done? How will they know they are successful?

  • As someone that often speaks his mind and looks for convenience, he wants to receive fast and competent support in a digital channel from a loyalty program that is proactive about his complaints and feedback.

Gains

What are their wants, needs, hopes, and dreams?

  • He wants the ability to easily search for answers to his questions himself before seeking human help.
  • He appreciates organizations that are engaged with their customers, especially on social media where they’re tagged a lot.

5. Conversational Care
Journey Statement

This image contains a prioritized value chain for conversational care (Online support)

Stakeholder Journey Statement

As a digital nomad, I want conversational care where I receive fast and competent support from an organization that is proactive about guest complaints and feedback.

5. Conversational Care Journey Output

Stakeholder: Guest – Digital Nomad

Journey Statement: As a digital nomad, I want conversational care where I receive fast and competent support from an organization that is proactive about guest complaints and feedback.

Journey Activity

Explore HotelWebsite

Has a Question

Search for Support (FAQs didn’t help)Receive SupportBook Hotel Room Advocate on Social Media

Touchpoints

  • Website
  • Website
  • FAQs section
  • Website
  • Chatbot
  • Website
  • Chatbot
  • Website
  • Chatbot
  • Transaction
  • Facebook, Twitter

Metrics

Nonroutine Cognitive

Nonroutine Cognitive

Routine Cognitive

Routine Cognitive

Nonroutine Cognitive

Nonroutine Cognitive

Nature of Activity

  • Click rate
  • Usability
  • Time to value
  • Time to value
  • Member satisfaction
  • Member satisfaction
  • Active engagement rate
  • Member satisfaction

Key Moments & Pain Points

  • Confusing website
  • Guest hunts for information
  • Customer service shortage
  • Long wait times
  • Traditional support
  • Support must be competent and answer question correctly
  • Guest expects good service
  • Keep the member on the website
  • Strengthen member’s decision
  • Marketing must sift through hundreds of posts
Opportunities
  • Evaluate current content management software and strategy
  • FAQs section on website
  • Automated conversational agent
  • Natural language processing capabilities to manage complex queries
  • Business logic integration: Offer discount for hotel booking based on support
  • Intuitive word cloud for feedback

Prioritization of digital loyalty program opportunities

Leverage design-thinking methods to prioritize opportunities.

As there may be many opportunities arising from the journey map, prioritize ideas to identify which ones you can tackle first – or at all. Leverage IDEO’s design-thinking “three lenses of innovation” to support prioritization, using previous activities (such as prioritizing value chains for transformation) to determine how realistic the following lenses are on a scale of low, medium, and high:

  • Feasibility: Do you currently have the capabilities to deliver on this opportunity? Do you have the right partners, resources, or technology?
  • Desirability: Is this a solution the stakeholder needs? Does it solve a known pain point?
  • Viability: Does this initiative have an impact on the financial revenue of the organization? Is it a profitable solution that will support the business model? Will this opportunity require a complex cost structure?

Info-Tech Insight

Ideally, your organization would prioritize fewer digital opportunities to make your strategy as actionable as possible. Based on extensive research and interviews, this report prioritizes many opportunities to demonstrate various solutions depending on the pain points, gaps, interests, and maturity of your gaming and hospitality organization.

Opportunities Feasibility Desirability Viability
(L/M/H) (L/M/H) (L/M/H)
Guest Profile Customer data platform (CDP) for unified, multisourced data H H H
Management Unsupervised machine learning (ML)–based segmentation to investigate clusters H H H
AI automation for updates with little need for human intervention H M H
Data visualization tool, i.e. dashboard H H H
Loyalty Scheme Setting custom automation workflow H H H
Management Drag-and-drop functionality H H H
AI testing M H H
Data visualization tool, i.e. dashboard H H H
Promotions & Incentives Push notification on mobile device H H H
Personalization engine H H H
Manage consent and permission H M H
Contactless Automatic facial recognition for member identification H H H
Service Identify emotions through facial recognition H H H
Touchless point collections and transactional charges through face association H H H
Conversational Automated conversational agent H H H
Care Natural language processing capabilities to manage complex queries H H H
Intuitive word cloud for feedback H H H

Digital loyalty program goals

With the prioritized set of opportunities for each stakeholder journey, take a step back and assess what the sum of these opportunities means for the journey. What is the overall goal or objective of these opportunities? How do these opportunities change or facilitate the journey experience? From here, identify a single goal statement for each stakeholder journey.

Stakeholder Journey Statement Prioritized Opportunities

DIGITAL GOALS

Marketing Department Employee I want guest segmentation to go beyond generic attributes so that when we create loyalty campaigns, we can incorporate deep, personal insights that have been constructed in this process. Customer data platform (CDP) for unified, multisourced data

Support guest segmentation through centralized data, ML-based automation, and data visualization tools.

Unsupervised ML-based segmentation to investigate clusters
Data visualization tool, i.e. dashboard
I want to design flexible loyalty schemes so that it’s faster and easier to react to guest feedback. Setting custom automation workflow

Support flexible loyalty scheme development through automation, a user-friendly interface, and data visualization tools.

Drag and drop functionality
Data visualization tool, i.e. dashboard
Guest I want promotions and incentives that are hyperpersonalized to my preferences. Push notification on mobile devices

Support real-time hyperpersonalized push promotions and incentives through a personalization engine.

Personalization engine
I want an on-property experience where the organization automatically recognizes me as a VIP loyalty member. Automatic facial recognition for member identification

Support the provision of luxury hospitality to high-value loyalty members through facial recognition.

Identify emotions through facial recognition
Touchless point collections and transactional charges through face association
I want conversational care where I receive fast and competent support from an organization that is proactive about guest complaints and feedback. Automated conversational agent

Support conversational care through automated conversational agents and data visualization tools.

Natural language processing capabilities to manage complex queries
Intuitive word cloud for feedback

Opportunity takeaways

Circling back to the components of a digital loyalty program, these digital opportunities have covered specific areas where technology is a gap, and the implementation of these opportunities will boost the organization’s overall marketing department efficiency and guest experience efforts in the following ways:

  1. Qualitative and quantitative data collection opportunities enable the organization to understand customers and experiences and to provide a single view of the customer.
  2. Experience management opportunities as well as AI and ML process automations to trigger automatic actions can drive personalized and relevant journeys and experiences.
  3. Analytics and reporting opportunities can extensively track data and act on real-time insights for optimization.
  4. Experience execution opportunities can be used to engage with guests at touchpoints.
DIGITAL LOYALTY PROGRAM
Design
  • Relationship-driven with personalized reward scheme stemming from customer interactions in digital touchpoints
Transaction Method
  • Mobile application
Delivery Method
  • Push notifications, text messages pre-, during, and post-stay/play
Objective
  • Behavioral loyalty: Timely, tailored content that is trusted, convenient, and available across all channels•Attitudinal loyalty: Brand proposition, overall experience
Type of Rewards
  • Tangible and experiential rewards
Technology & Analytics Usage
  • Extensive
Result
  • Creates a connected history that informs the brand of the next best engagement opportunity

Info-Tech Insight

Connect the opportunity dots back to the definition and components of a digital loyalty program to ensure that your digital opportunities are indeed enabling these requirements, as they are important to achieving your customer-centric and business resiliency objectives.

Break down opportunities into a series of initiatives

Brainstorm initiatives for each high-priority loyalty program opportunity using the framework below. Describe each initiative as a plan or action to take to solve the problem.

Opportunity → Initiatives

People: What initiatives are required to manage people, data, and other organizational factors that are impacted by this opportunity?

Process: What processes must be created, changed, or removed based on the data?

Technology: What systems are required to support this opportunity?

Opportunity-to-initiative map

PRIORITIZED OPPORTUNITIES

TECHNOLOGY

PEOPLE

PROCESS

Customer data platform (CDP) for unified, multisourced data
  • Acquire and implement a customer data platform solution
  • Train marketing on automated functionalities
  • Establish master data management approach
Unsupervised ML-based segmentation to investigate clusters
  • Implement automated customer segmentation
  • Adopt critical thinking for data interpretation
Data visualization tool, i.e. dashboard
  • Deliver data visualization tools: dashboard
Setting custom automation workflow
  • Build no-code/low-code loyalty campaign solution
  • Implement customer privacy strategy
  • Deploy review and refinement techniques
Drag-and-drop functionality
Push notification on mobile devices
  • Mobile push notification deployment
Personalization engine
  • Execute personalization engine
Automatic facial recognition for member identification
  • Deploy loyalty facial recognition solution
  • Train operations on facial recognition integration
  • Implement customer privacy strategy
Identify emotions through facial recognition
Touchless point collections and transactional charges through face association
Automated conversational agent
  • Implement automated conversational agent
  • Train marketing on functionality of all automated tools
  • Adopt critical thinking for data interpretation
Natural language processing capabilities to manage complex queries
  • Implement statistical natural language processing application
  • Incorporate user research and data science techniques to make evidence-based recommendations for improvement
Intuitive word cloud for feedback
  • Deliver data visualization tools: word cloud
  • Adopt critical thinking for data interpretation

Phase 4
Digital Transformation Map

An industry digital strategy opportunity report

This phase will walk through the following activities:

  • Detail initiatives
  • Build a unified roadmap

Create initiative profiles for each high-priority initiative on your strategy

This image contains a screenshot of an example of an initiative profile for one of twelve high priority initiatives discussed later in this blueprint

1. Acquire and Implement a CDP

Empower loyalty-building strategies by enabling data unification through a customer data platform (CDP).

Incremental Cost:

Initiative Description:

Project Timeline:

$0
LABOR

$0
SYSTEMS

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CONTRACTS

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  • Optimize the loyalty program with a campaign-centric platform.
  • Provide a single view of every guest and a reliable source of data for loyalty program functions.
  • Give control to the marketing team to access and query data so they don’t have to make requests of the IT department, which can be a slow process.

This is an image of the timeline for Profile 1. Acquire and Implement a CDP

Primary Business Benefits:

Other Expected Business Benefits:

Initiative Category:

Eliminate data silos

Increase automation

Reduce need for specialized technical skill sets

03- Innovation

CIO Comments:

Risks:

Dependencies:

Project Team:

“A powerful and necessary foundation to loyalty program data.”

  • Privacy regulations can pose a challenge to data unification and the implementation of high-level initiatives such as hyperpersonalization.
  • Storage costs double since data must be replicated to the CDP.
  • Although a CDP reduces the need for specialized technical skill sets, a CDP is still more technical than a CRM and will require training and initial IT dependencies.
  • Not all CDP solutions can meet our loyalty requirements, so the organization must align with the right product vendor.
  • Business Sponsor: Samuel
  • IT Sponsor: Melissa
  • PM: Lisa

2. Implement Automated Customer Segmentation

Build a successful automated customer segmentation strategy and acquire the right automation tool.

Incremental Cost:

Initiative Description:

Project Timeline:

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LABOR

$0
SYSTEMS

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CONTRACTS

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TOTAL

  • Apply machine learning and advanced techniques suited to the complexity and size of the guest base.
  • Capture trends in guest activity regarding usage, spend, and behavior.

This is an image of the timeline for Profile 2. Implement Automated Customer Segmentation

Primary Business Benefits:

Other Expected Business Benefits:

Initiative Category:

Minimize manual work

Increase flexibility of algorithms to expand dimensions of guest data

Improve real-time segmentation updates

03-Innovation

CIO Comments:

Risks:

Dependencies:

Project Team:

“An incredibly useful tool that helps to transform the data collected into useful insights to generate more leads.”

  • Must address and actively hunt for potential machine-learning bias
  • Achieving segmentation success and ROI will require a proper data and integration strategy that includes the implementation of a customer data platform.
  • Business Sponsor: Samuel
  • IT Sponsor: Melissa
  • PM: Lisa

3. Deliver Data Visualization Tools

Improving our reporting capabilities across marketing and loyalty program processes.

Incremental Cost:

Initiative Description:

Project Timeline:

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  • Real-time reporting, online and accessible anywhere.
  • Enabling the marketing department with their own unique and custom reports to enable decision making.
  • Tools to deliver: Dashboard, word cloud

This is an image of the timeline for Profile 3. Deliver Data Visualization Tools

Primary Business Benefits:

Other Expected Business Benefits:

Initiative Category:

Minimize manual work

Improve transparency & trust

Improve data-driven decision making

03: Innovation

CIO Comments:

Risks:

Dependencies:

Project Team:

“Core reporting capability goes hand in hand with our data quality program and will improve the overall quality of and satisfaction with our data and reporting capabilities.”

  • Ongoing maintenance and data quality assurance
  • Data analytics ownership across Integrated Resort X
  • Design of core reports
  • Quality assurance: training and awareness
  • Technology: systems integration
  • Business Sponsor: Samuel
  • IT Sponsor: Melissa
  • PM: Lisa

4. Build NCLC Loyalty Campaign Solution

Build a no-code/low-code (NCLC) loyalty campaign solution for agility and flexibility in creating loyalty campaigns.

Incremental Cost:

Initiative Description:

Project Timeline:

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LABOR

$0
SYSTEMS

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CONTRACTS

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  • Introduce automated custom workflows, drag-and-drop functionality, and an overall easy-to-understand visual editor.
  • Address high pain points that are inhibiting productivity or ability to deliver business value.

This is an image of the timeline for Profile 4. Build NCLC Loyalty Campaign Solution

Primary Business Benefits:

Other Expected Business Benefits:

Initiative Category:

Increase marketing autonomy and flexibility

Minimize manual work

Lower solution costs

03: Innovation

CIO Comments:

Risks:

Dependencies:

Project Team:

“We’re allowing the marketing program to create, run, and modify loyalty campaigns and offers without any assistance from the IT team.”

  • May introduce tool sprawl
  • Low- and no-code talent may not be easy to find and fill
  • Some of the tools may not be compatible with each other
  • Require resources to have strong technical skills
  • Strong software delivery and management practices
  • Business Sponsor: Samuel
  • IT Sponsor: Melissa
  • PM: Lisa

5. Mobile Push Notification Deployment

Deploy push notifications for mobile devices.

Incremental Cost:

Initiative Description:

Project Timeline:

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LABOR

$0
SYSTEMS

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CONTRACTS

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  • Execute the basic steps for deploying the push notifications in the mobile app with push notification software.
  • Introduce banner notifications, badge notifications, and alerts.

This is an image of the timeline for Profile 5. Mobile Push Notification Deployment

Primary Business Benefits:

Other Expected Business Benefits:

Initiative Category:

Increase reach of communicating with guests

Increase the opportunity for personalized and relevant content

Increase conversion rates

03: Innovation

CIO Comments:

Risks:

Dependencies:

Project Team:

“Push notifications will be effective at helping guests stay engaged with an app or re-engage with an app they haven’t opened in a while.”

  • Securing user devices
  • Failing to incorporate a best-practices push notification strategy such as finding the right send frequency, word count, and personalization
  • Must work with the personalization engine
  • Mobile device policy
  • Current device management strategy
  • Business Sponsor: Samuel
  • IT Sponsor: Melissa
  • PM: App development directors

6. Execute Personalization Engine

Introduce hyper-personalization to induce the “right guest, right message, right time” methodology by implementing a personalization engine.

Incremental Cost:

Initiative Description:

Project Timeline:

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LABOR

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  • Deploy personalization engine to execute on hyperpersonalized push notifications and SMS messaging on mobile devices.

This is an image of the timeline for Profile 6. Execute Personalization Engine

Primary Business Benefits:

Other Expected Business Benefits:

Initiative Category:

Increase guest satisfaction by offering personalized content

Increase conversion rates

Minimize manual work

03: Innovation

CIO Comments:

Risks:

Dependencies:

Project Team:

“We want to help marketing with a flexible, powerful and dynamic personalization engine that allows for responsiveness, accuracy, and ease when creating targeted loyalty campaigns.”

  • Personalization requires the collection of a significant amount of customer data, which some guests may not be willing to give to our organization.
  • The risk of mass marketing, which will lead to consumers feeling aggravated over irrelevant, ill-timed, or even spam-like messages
  • Highly dependent on customer data platform, segmentation tool, and campaign solution as the basis for personalization
  • Dependent on loyalty channels such as the mobile app and push notifications
  • Mobile device policy
  • Current device management strategy
  • Business Sponsor: Samuel
  • IT Sponsor: Melissa
  • PM: Lisa

7. Deploy Loyalty Facial Recognition Solution

Encourage a luxurious guest experience by deploying a loyalty facial recognition solution.

Incremental Cost:

Initiative Description:

Project Timeline:

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LABOR

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CONTRACTS

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  • Automatically recognize the guest in any scenario for proactive identification:
    • When the guest enters the property, staff will know of their arrival without loyalty ID.
    • Identify emotions and send alerts/notices to staff.
    • Enable touchless point collections and automatic charges.

This is an image of the timeline for Profile 7. Deploy Loyalty Facial Recognition Solution

Primary Business Benefits:

Other Expected Business Benefits:

Initiative Category:

Improves operational efficiency through real-time identification

Reduce the need (and cost) for physical loyalty cards

Reduce reactionary actions and scenarios

Increase property-level security

03: Innovation

CIO Comments:

Risks:

Dependencies:

Project Team:

“The best way to enhance security and increase guest satisfaction is through a loyalty facial recognition solution – it’s going to be the standard very soon.”

  • Privacy is the main concern, as guests will be under surveillance. Guests and operations should be informed that the solution sends algorithms and not images, which may put some at ease.
  • Carries the risks of errors so there should be constant supervision over the system to ensure that algorithms and data sets are free from bias.
  • Will require cameras (higher resolution) that can embed the solution into the devices
  • Connected to the loyalty solution
  • Business Sponsor: Samuel
  • IT Sponsor: Melissa
  • PM: Lisa

8. Implement Automated Conversational Agent

Deploy a chatbot for all loyalty program channels to enable conversational care.

Incremental Cost:

Initiative Description:

Project Timeline:

$0
LABOR

$0
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  • Provide automated customer support that allows for democratized access to all channels.
  • Gather meaningful feedback to pivot and refine content.
  • Provide member convenience.

This is an image of the timeline for Profile 8. Implement Automated Conversational Agent

Primary Business Benefits:

Other Expected Business Benefits:

Initiative Category:

Decrease in manual work

Improve upselling and cross-selling

Enable asynchronous customer support

03: Innovation

CIO Comments:

Risks:

Dependencies:

Project Team:

“Helping our loyalty program members get from point A to point B as quickly and smoothly as possibly without them feeling left behind or lost.”

  • Underdeveloped artificial intelligence can become uncomfortable for the customer because it’s too basic and robotic.
  • IoT devices to enable conversational care options
  • Software and hardware enabled
  • Business Sponsor: Samuel
  • IT Sponsor: Melissa
  • PM: Lisa

9. Implement Statistical Natural Language Processing Application

Enable automatic manipulation of natural language to improve the guest experience and empower employees.

Incremental Cost:

Initiative Description:

Project Timeline:

$0
LABOR

$0
SYSTEMS

$0
CONTRACTS

$0
TOTAL

  • Enable our chatbot to understand human language as it is spoken and written.
  • Enable text analysis such as sentiment analysis, topic classification, and keyword extraction.

This is an image of the timeline for Profile 9. Implement Statistical Natural Language Processing Application

Primary Business Benefits:

Other Expected Business Benefits:

Initiative Category:

Eliminate repetitive functions through streamlined processes

Eliminate repetitive functions through streamlined processes

Improve data analysis

03: Innovation

CIO Comments:

Risks:

Dependencies:

Project Team:

“Helping our loyalty program members get from point A to point B as quickly and smoothly as possibly without them feeling left behind or lost.”

  • Although NLP is a powerful tool, there are still language limitations: synonyms, irony and sarcasm, ambiguity, errors in text or speech, etc.
  • Connects with the chatbot
  • Requires a tool with pretrained models or the ability to build customized machine learning models
  • Business Sponsor: Samuel
  • IT Sponsor: Melissa
  • PM: Lisa

10. Train Marketing on Automated Functionalities

Enable awareness and consistent training across key processes that are automated.

Incremental Cost:

Initiative Description:

Project Timeline:

$0
LABOR

$0
SYSTEMS

$0
CONTRACTS

$0
TOTAL

  • Enable training and internal courses through our L&D department.
  • The marketing team will gain skills that will support efficiency and productivity in the department.

This is an image of the timeline for Profile 10. Train Marketing on Automated Functionalities

Primary Business Benefits:

Other Expected Business Benefits:

Initiative Category:

Improve internal processes

Better guest experiences

Reduce costs and errors

03: Innovation

CIO Comments:

Risks:

Dependencies:

Project Team:

“This capability is a result of our ongoing commitment to training and development.”

  • Consistent adoption
  • Internal course creation can be time consuming
  • Dependent on staff that are willing to learn new skills
  • Training done through the learning management system
  • Business Sponsor: Samuel
  • IT Sponsor: Melissa
  • PM: Lisa

11. Train Operations on the Facial Recognition Integration

Enable awareness and consistent adoption of the facial recognition solution across the property.

Incremental Cost:

Initiative Description:

Project Timeline:

$0
LABOR

$0
SYSTEMS

$0
CONTRACTS

$0
TOTAL

  • Enable training and internal courses through our L&D department.
  • Empower frontline staff and improve the guest-employee relationship.

This is an image of the timeline for Profile 11. Train Operations on the Facial Recognition Integration

Primary Business Benefits:

Other Expected Business Benefits:

Initiative Category:

Reduce hardships in learning new technology

Improve internal processes

Better guest experiences

Reduce costs and errors

03: Innovation

CIO Comments:

Risks:

Dependencies:

Project Team:

“This capability is a result of our ongoing commitment to training and development.”

  • Consistent adoption
  • Internal course creation can be time consuming
  • Dependent on staff that are willing to learn new skills
  • Training done through the learning management system
  • Business Sponsor: Samuel
  • IT Sponsor: Melissa
  • PM: Lisa

12. Establish Master Data Management Approach

Introduce the data discipline to ensure the uniformity and accuracy of Integrated Resort X’s master data assets.

Incremental Cost:

Initiative Description:

Project Timeline:

$0
LABOR

$0
SYSTEMS

$0
CONTRACTS

$0
TOTAL

  • Due to the customer data platform implementation, a master data management approach is necessary.
  • Governing procedures will ensure the proper maintenance of data by matching complete guest records through multiple data points.

This is an image of the timeline for Profile 12. Establish Master Data Management Approach

Primary Business Benefits:

Other Expected Business Benefits:

Initiative Category:

Improve data quality

Reduce data duplication, which can further reduce cost

Increase strategic decision-making accuracy through reduced errors

03: Innovation

CIO Comments:

Risks:

Dependencies:

Project Team:

“This capability is a result of our ongoing commitment to training and development.”

  • Risk of resistance
  • Dependent on staff following these governing procedures
  • Both business and IT units must be trained on how to format, enter, store, and access data
  • Business Sponsor: Samuel
  • IT Sponsor: Melissa
  • PM: Lisa

Visualize the digital loyalty strategy with a roadmap

Visual representations of data are more compelling than text alone.

Develop a high-level document that travels with the initiative from inception through executive inquiry, project management, and finally execution.

An initiative needs to be discrete: able to be conceptualized and discussed as an independent item. Each initiative must have three characteristics:

  • Specific outcome: Describe an explicit change in the people, processes, or technology of the enterprise.
  • Target end date: When the described outcome will be in effect.
  • Owner: Who on the IT team is responsible for executing on the initiative.

This image is a screenshot of the digital loyalty strategy roadmap. GOAL: support guest segmentation through centralized data, ML vased automation, and data visualization tools.

Info-Tech Insight

Don’t project your vision three to five years into the future. Dive deep into next year’s big-ticket items instead.

Build for agility

An IT strategy should align with the digital loyalty strategy

The CIO’s role is to enable an IT strategy that aligns with a digital loyalty strategy.

An IT strategy outlines how technology can be used to meet the IT and business goals.

A digital loyalty strategy focuses on improving active engagement and retention of members for a loyalty program in support of business objectives.

Through a digital loyalty strategy, an organization can accelerate value generation and optimize business operations to build business resilience while simultaneously enhancing the guest experience.

To ensure the success of a digital loyalty strategy, the digital goals and initiatives outlined must be supported by and aligned with an IT strategy. Because the way that demand works for the gaming and hospitality industry brings volatility, the ability to respond quickly to emerging customer needs and changing government regulations will be paramount. Gaming and hospitality companies will need to adopt the technologies and working practices that will support their agility. Through IT strategy, your organization can analyze the technical infrastructure changes needed to support these initiatives. For example:

  • Functional architecture
  • APIs and integration
  • Application/platform changes

Info-Tech Insight

IT departments that have not developed IT strategies experience alignment, organizational, and prioritization issues.

A digital loyalty strategy holistically impacts the business

Integrated Resort X elicited a goals cascade to identify the organizational goals, initiatives, and capabilities, mapped back to IT goals, initiatives, and capabilities.

This image Shows the Holistic impact which a digital loyalty strategy can have on important outcomes. The phases discussed are: Business Goals; Business Initiatives; Business Capabilities; IT Capabilities; IT Initiatives; and IT Goals.

Report Summary

Integrated Resort X’s Digital Transformation

Your organization now has an extensive understanding of what would be involved in a digital loyalty program strategy for a gaming and hospitality organization such as Integrated Resort X. Through this report, you’ve recognized the impact a digital loyalty program and its strategy can have on the internal and external environment, improving the productivity and efficiency of end users while optimizing the guest experience.

Based on the initiative outcomes in this report, your organization has knowledge on what a digital loyalty program strategy can look like based on Integrated Resort X and its prioritized value chains and leapfrog ideas and, depending on your organization, can directly apply these to your loyalty program needs.

Once Integrated Resort X identified scenarios and created end-user and guest personas, the organization was able to develop journey maps to determine key opportunities based on journey activity pain points. After identifying key opportunities, the organization then prioritized and broke them down into a series of initiatives to create a digital loyalty program strategy roadmap.

Essentially, Integrated Resort X’s loyalty program is now strategically focused on resiliency and relationships.

If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech Workshop

Contact your account representative for more information

workshops@infotech.com

1-888-670-8889

Additional Support:

If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech Workshop

To accelerate this project even further, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team.

Info-Tech analysts will join you and your team at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.

This is an image of an Info-Tech Analyst

Contact your account representative for more information.
workshops@infotech.com 1-888-670-8889

The following are sample activities that will be conducted by Info-Tech analysts with your team:

This image contains a screenshot of a value stream from Info-Tech's Value Chain Prioritization Activity

Value Chain Prioritization

Evaluate the value chain processes based on the level of pain or exposure to risk experienced by a stakeholder to accomplish that task and the financial impact that level of the process has on the organization.

This image contains a screenshot of a Journey Map from Info-Tech's Journey Mapping Activity

Journey Mapping

Start with the journey activity and map out the steps involved to accomplish the goal of the stakeholder. Identify touchpoints, the nature of the activity, metrics for the journey, and pain points and opportunities.

Use this strategy context report as an input to different blueprints

As part of a next-steps checklist, identify how you would like to use this strategy opportunity report. This can be used as a standalone report or an input to digital strategy, IT strategy, design thinking, reference architecture, or other projects.

Digital Loyalty program strategy

Digital opportunity report

Integrated Casino Reference Architecture

Build a Business-Aligned IT Strategy

Adopt Design Thinking in Your Organization

Define Your Digital Business Strategy

Capability Map

Current State

Requirements

Innovate the Business

Key Capabilities

Strategic Initiative Plan

Service Design

Transform Processes

Prioritize Capability Gaps

Foundational Elements

Design Centricity

Build Customer Centricity

Research Contributors and Experts

John Acres
Founder
Acres Manufacturing

Jennifer Potokar
Director of Loyalty Solutions
Aristocrat Technologies

Thomas Castleberry
VP of CXS Strategic Initiatives
Aristocrat Technologies

Eric Bowers
VP of Architecture & Innovation
Boyd Gaming

Alvaro Mocholi
CEO
Grekkom Loyalty Solutions

Amber Allan
Systems Business Operations Manager
Konami Gaming

Joe Dominguez
Systems Business Operations Executive
Konami Gaming

Randy Caron
VP of System Sales
Konami Gaming

Erica Tessier
VP of Corporate Marketing
Mohegan Gaming & Entertainment

Mark Rosa
CIO
Mohegan Gaming & Entertainment

Rob Gallo
President
Peak Gaming Group

David Croft
VP of Gaming Optimization & Strategy
Tangam System

Anonymous Contributor
IT
Loto-Québec

Anonymous Contributor
Digital
Loto-Québec

Anonymous Contributor
iGaming
Loto-Québec

Anonymous Contributor
e-Commerce and Digital Marketing
Loto-Québec

Anonymous Contributor
IT
AGLC

Anonymous Contributor
Marketing
AGLC

Dana Daher
Research Director
Info-Tech Research Group

David Farlin
Executive Counselor
Info-Tech Research Group

Don DeChamps
Executive Advisor
Info-Tech Research Group

Rahul Jaiswal
Principal Research Director
Info-Tech Research Group

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An industry digital strategy opportunity report

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  • Call #1 - Walk through the industry digital strategy opportunity to determine if this is a strategy your organization would like to adopt or what types of changes are needed to make the digital loyalty strategy work for your organization.

Author

Monica Pagtalunan

Contributors

  • John Acres, Founder, Acres Manufacturing
  • Jennifer Potokar, Director of Loyalty Solutions, Aristocrat Technologies
  • Thomas Castleberry, VP of CXS Strategic Initiatives, Aristocrat Technologies
  • Eric Bowers, VP of Architecture & Innovation, Boyd Gaming
  • Alvaro Mocholi, CEO, Grekkom Loyalty Solutions
  • Amber Allen, Systems Business Operations Manager, Konami Gaming
  • Joe Dominguez, System Business Operations Executive, Konami Gaming
  • Randy Caron, VP of System Sales, Konami Gaming
  • Erica Tessier, VP of Corporate Marketing, Mohegan Gaming & Entertainment
  • Mark Rosa, CIO, Mohegan Gaming & Entertainment
  • Rob Gallo, President, Peak Gaming Group
  • David Croft, VP of Gaming Optimization & Strategy, Tangam Systems
  • Anonymous Contributor, IT, Loto-Quebec
  • Anonymous Contributor, Digital, Loto-Quebec
  • Anonymous Contributor, iGaming, Loto-Quebec
  • Anonymous Contributor, e-Commerce and Digital Marketing, Loto-Quebec
  • Anonymous Contributor, IT, AGLC
  • Anonymous Contributor, Marketing, AGLC
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