AIRLINES & ALLIANCES

New iSeatz Report Explores Loyalty Challenges and Strategies for Membership-Based Organizations

While value and cost savings remain significant considerations for this customer group, members' shared interests and emotional connection with membership organizations emerge as primary motivators.

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iSeatz, a leading provider of travel loyalty technology solutions for major airline, hotel, and financial services companies, has released its latest survey report, The Benefits of Belonging: An Analysis of Membership-Based Organizations, Their Constituents, and Their Loyalty Strategies, the first of its kind focusing exclusively on the role of loyalty programs within membership-based organizations. The report’s findings reveal many distinctions from commercial loyalty programs, most notably the importance of shared interests among members and emotional connections within membership-based communities. 

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The Benefits of Belonging: An Analysis of Membership-Based Organizations, Their Constituents, and Their Loyalty Strategies is the only industry report aimed at examining and gaining insights into these groups and the people who subscribe to them. It uncovers a distinguishable set of priorities, preferences, and needs compared with other research on commercial loyalty programs.

The report is based on survey data collected from 251 membership organization professionals responsible for overseeing or directing membership organizations, member attraction, retention, or engagement, and over 2,000 U.S. consumers actively affiliated with a club, association, trade group, private membership organization, or participants in a subscription program.

Irrespective of size or type, membership-based organizations face unique challenges and have asymmetrical goals for their loyalty programs related to their reward portfolios, investment priorities, new member acquisition, revenue/dues growth, and member user experience. While each type of organization has its own needs based on its industry and focus, they all share one commonality: that travel rewards and a better travel rewards platform can help them achieve their top goals, namely attracting new members and increasing engagement with existing members.  

“Our report sets a new standard for understanding the dynamics of loyalty within the membership-based sector by pinpointing the distinct needs and goals of membership communities, something never done before,” says Kenneth Purcell, CEO of iSeatz. “Understanding the ‘how’ and ‘why’ behind members’ behavior ensures that membership organizations can develop effective loyalty strategies that enhance engagement and retention and unlock new avenues for sustainable growth.”

The traditional transactional approach to loyalty will only go so far toward engaging and retaining members. Report findings reveal that enhanced marketing strategies, improved travel booking capabilities, and more comprehensive, feature-rich travel loyalty technology present a significant opportunity to boost member engagement, attract new members, and provide broader benefits to existing members across the membership organization sector.

A Different Type of Consumer Affinity

Shared interests and values drive consumers who belong to membership organizations to a greater extent than individuals who belong to more traditional loyalty programs. Report data suggests that for membership organizations, a loyalty strategy that reinforces advocacy and social loyalty will be more effective, given that the organization-member relationship thrives on the strength of their brand affinity and intrinsic value compared to the traditional loyalty program-customer relationship, which is transactional in nature.

Additional key highlights from the report include:

• 80% of members actively engage with their most-frequented organizations weekly, while 33% reported daily interactions, 32% engaged a few times per week, and 15% engaged weekly.
• Membership organizations offer a wide range of rewards but often lack high-quality travel and lifestyle rewards options that resonate most with members.
• Despite 93% of surveyed organizations offering travel booking services, 29% of respondents seldom book travel through membership organizations, presenting a big challenge for organizations to overcome.
• Membership organizations prioritize their investments differently than traditional brands, with 60% prioritizing marketing and 37% focusing on personalization. This drastically differs from traditional brands, prioritizing incremental improvements to loyalty experience and platform.
• Members of subscription programs or services belong to more loyalty programs (56% belonging to more than three programs vs. the 26% survey average), interact more frequently, and place greater value on everyday discounts and unique experiences.

“It’s no longer just about value. Affinities run deeper, and although value continues to be a key motivating factor, it doesn’t solely define a membership organization’s intrinsic worth,” says Kenneth Purcell, CEO of iSeatz. “Investing in technology, robust rewards portfolios, and superior user experience presents a transformative opportunity for membership organizations to increase engagement among current members and attract new members with a revamped value proposition.”

About iSeatz
iSeatz connects people to brands with personalized and diverse travel & lifestyle experiences. Backed by proven deliverability, reliable advanced analytics, and travel lifecycle expertise, iSeatz sets the bar for a superb journey from the very first search. Our clients represent the best in travel, hospitality, and financial services, including American Express, IHG Hotels & Resorts, and Wyndham Hotels & Resorts. Learn more at iSeatz.com. 

SOURCE: iSeatz

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