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Wyndham Hotels Localising A Loyalty Programme In China. Iclp Gm Kevin Yeow

Montreal Airline Information Mega Event. FFP Loyalty Track. Co-presentation - Robin Korman / Kevin Yeow

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Wyndham Hotels Localising A Loyalty Programme In China. Iclp Gm Kevin Yeow

  1. 1. The secrets of success in localizing a global loyalty program – a China case study Robin Korman – SVP, Loyalty Marketing & Strategic Partnerships Kevin Yeow – General Manager, China
  2. 2. Wyndham Rewards Facts• World’s largest hotel loyalty program – 11 brands and over 6,500 participating hotels• Launched in 2004 as TripRewards• Rebranded as Wyndham Rewards in 2008• 8 million active members in 20 countries
  3. 3. Program Overview - China• Program launched in China: July 2007• Largest non-Chinese hotelier – 265 properties (and growing) in 100 Chinese cities• Brands represented: Wyndham/Wyndham Grand, Ramada, Howard Johnson, Days Inn, Super 8
  4. 4. China Travelers• Growth of domestic travel is driven by various key segments• Increasing propensity to trade up to international standard accommodations by growing middle class segment• Business travel needs differ by type of company ownership• Less brand knowledge and experience with programs resulting in lower loyalty Key Domestic Traveler Segments Groups Road-warrior Middle-Class State Owned Multi-National Entrepreneur Leisure Enterprises Corporations Mgmt Mgmt
  5. 5. Adapting to the Chinese Member Language & Culture Relevancy Earning & Burn ‘’This is China’’ Proposition Local Promotions
  6. 6. Don’t get ‘lost in translation…’Language Culture• Spoken – Putonghua • ‘Face’ & Guanxi• Written – Simplified Chinese • Visual representation• Systems & Operational • Unpredictable service Impact expectations Dialogue: Communication & Servicing
  7. 7. Language Impact on Enrolment• Centralized Loyalty System US limited to single-byte languages• English enrolment an issue for both customers and hotel staff• Both English and Chinese are required for Int’l/Domestic delivery• Impact:  Hurdle to local recruitment  Inaccurate member data  High rate of returned mail
  8. 8. Local Systems Solution Online / Property China Program System Functions • Double Byte dual language profiles • Phonetic auto-conversion from Chinese (S) to English • Evolving address/property database • Reporting & Tracking • (Free Night Stay, Promotional & Redemption Management) • (Database Marketing Capabilities)Original CN data received Semi-auto translated data Eye-ball Verification/Correction上海市黄浦区九江路399号华盛 Jiujiang Road, Shanghai Huangpu Suite 1201, 12th Floor商务大厦12楼1201室 District No. 399 Huasheng Building Huasheng Commercial Building, No. 399 Jiujiang Road 12th floor Room 1201 Huangpu District Shanghai
  9. 9. Samples of handwritten addresses Appearance  Delivery Time Minimize Return Mail  Postage Costs
  10. 10. Earn & Burn StrategyEarn• Partner with established local programs with sizable bases• Target the right strategic partners, not just those who say ‘yes’• Leverage partner membership bases & channels effectively• Localize promotions to create perception of ‘tangibility’Burn• Complement ‘Free Nights’ as non-China travel is group driven• Points proposition is still competing with instant gratification• Low level rewards fit in with the Wyndham Hotel business model and stimulates program participation
  11. 11. China Partner PortfolioEarn Burn (non-hotel partners) Branded electronic items Cash Vouchers WR Premiums China Airlines (4) China Redemption Items (30)
  12. 12. Global Promotion Platforms Double Points Stay twice earn a free nightLanguage and Visuals adapted to the local market
  13. 13. Local Tactical PromotionsStay & Earn Stay & Earn Stay & EarnExpo Tickets A Luxury Hotel Stay China Mobile SIM Keeping it innovative & relevant for the China market
  14. 14. ‘This is China’ – Personal Data• State based legislation – Non individual – Content based• Draft legislation in limbo – Likely to include Opt In/Out• Data sources – integrity – SPAM is a problem – Corruption 90 percent• Change will happen, but it Share of Web Users who receive may be fair or unfair spam e-mails and text messages, as well as unsolicited sales calls, after entering personal data online
  15. 15. ‘This is China’ – Intervention Control InsulationSensitivity Domestic Non – Free Market Forces
  16. 16. ‘This is China’ - Internet Usage The Key Differences • IM = Biz Culture • Music/Video = Copyright IP • Games = Youth • Blogs = Democracy No. 1 activity - 80% of web users
  17. 17. ‘This is China’ – Social Networks• Scale – 400m Netizens – over 750m mobile subscribers Facebook• Local ‘clone’ platforms• Lack of copyright protection• Migration to mobile platforms YouTube Twitter
  18. 18. Wyndham Rewards Localization Consultancy & Online Member Core Local Promotions &Program Planning Acquisition Communication Campaigns Partnership Redemption Member Hotline Program Development Sourcing Operations
  19. 19. Achievement A step by step approach July ‘07 August ‘08 Feb ‘09 May ‘09 Sep ‘09 2010 Launch of Localized Enhanced 4 Chinese China Based Local WR in China Redemption Enrolment / Airline Service Tailored Options FNS Booking Partners Hotline Promotions• 100% YOY increase in member growth• Among the highest active rates of all Wyndham Rewards markets• Increasing demand for low and medium-value local non-hotel rewards
  20. 20. Tips on entering the China market Dos • Understand the difference in customer behavior • Make content as well as language relevant要 • • Complement centralized infrastructure with local Develop effective relationships with your suppliers YàoDon’ts • Assume best practices from elsewhere apply • Think that what works today will work tomorrow不要 • Try to achieve too many goals at the same time • Forget that ‘This is China’Bú yào
  21. 21. Thank you
  22. 22. Wyndham Presenter• As the Senior Vice President of loyalty marketing and strategic partnerships, Robin Korman is responsible for the development and management of the company’s loyalty program, customer loyalty initiatives, all direct-marketing programs and internal and external strategic marketing alliances• Previously, she was senior vice president and general manager at Chase Card Services where she was responsible for overseeing the company’s multi-billion dollar partner credit card portfolio, including development and repositioning of new and existing products and the creation of new acquisition and growth strategies. Prior to Chase, Robin spent seven years with Starwood Hotels & Resorts Worldwide, serving first as vice president, global loyalty marketing leader, and later as vice president, brand marketing leader for Aloft Hotels and Element Hotels. In those roles, she was responsible for overseeing Starwood’s Preferred Guest program and later, for developing the positioning and marketing for the global launches of the company’s Aloft® and ElementSM brands. In addition to her most recent experience, she has also served in executive marketing, communications and public relations roles with General Electric and Citibank• About Wyndham Hotel Group Wyndham Hotel Group, part of the Wyndham Worldwide family of companies (NYSE: WYN), encompasses more than 7,000 hotels and 590,000 rooms in 66 countries under the hotel brands: Wyndham Hotels and Resorts®, Ramada®, Days Inn®, Super 8®, Wingate by Wyndham®, Baymont Inn & Suites®, Microtel Inns & Suites®, Hawthorn Suites®, Howard Johnson®, Travelodge® and Knights Inn®.
  23. 23. ICLP Presenter• As General Manager, ICLP China, Kevin has full P&L responsibility for ICLP and other Collinson Group companies in mainland China including Shanghai and Beijing offices• Kevin is a highly experienced loyalty marketing practitioner with over 16 years experience in the development and implementation of loyalty marketing programmes and CRM initiatives for leading global organisations• Clients he has helped develop include Cathay Pacific’s Asia Miles, InterContinental Hotels Group’s Priority Club Rewards, Wyndham Hotel’s Wyndham Rewards, Northwest WorldPerks and HP’s Original Rewards programmes where he was instrumental in the launch of both Asia Miles and Priority Club Rewards in the Asia Pacific region and more recently Wyndham Rewards launch in the China market• He is originally from the United Kingdom has been in Hong Kong since 1994 working for leading direct marketing agencies including Draft FCB and McCann Relationship Marketing before joining ICLP where he has been for the past 14 years• About ICLP ICLP is the worlds NO 1 specialist loyalty marketing agency. Established in 1987, ICLP is a global, full- service agency that has specialised in loyalty marketing for nearly two decades - its in our blood. We are recognised worldwide as leading loyalty marketing strategists & thought leaders, and have experience and expertise across a wide variety of sectors.