Club Infinitum
Product Manager -> 0 - 1
SaffronStays, a luxury hospitality brand where families spend thousands of dollars a night to reconnect and rejuvenate, faced a significant challenge with its existing loyalty program. As a Product Manager, I recognized that our current program was more of a gimmick than a value-add, leading to unhappy users, financial losses for vacation rental owners, and a decline in repeat customers.
Identifying the problem
Our existing loyalty program was failing to deliver value to all stakeholders. Users were dissatisfied, vacation rental owners were losing money, and we were experiencing a direct negative impact on our bottom line due to decreasing customer retention. It was clear that a complete overhaul of our loyalty strategy was necessary.
Tackling the task
The need for a new loyalty program was evident, but we faced numerous questions: What should we build? How would we build it? Who would bear the cost? To answer these questions, I embarked on a comprehensive research journey, studying successful loyalty programs like Hilton Honors and Marriott Bonvoy. I identified a common thread among these programs: tiered systems and coveted perks.
However, our unique business model as a revenue-sharing platform with independent property owners presented distinct challenges. To gain deeper insights, I engaged directly with our customers, listened to support calls, and analyzed what drove their purchasing decisions and what benefits would foster loyalty.
Navigating stakeholder concerns
Initially, management was hesitant due to profitability concerns. Undeterred, I shifted focus to the property owners, presenting a compelling case: by sacrificing up to 15% of short-term revenues, they could potentially increase annual earnings by 50%. Our projections suggested that repeat users could boost yearly occupancy from 100 to 150 days, with additional revenue from food services further enhancing profitability.
Despite facing numerous rejections, we eventually secured buy-in from early adopters in a high-frequency area, setting the stage for our new program.
Designing Rewards and Implementing Nudges
We structured Club Infinitum as a tiered system based on yearly spend, offering escalating perks with status. A key feature was the ability to convert reward points directly into monetary value for bookings. We launched a campaign to inform all customers about their new benefits, resulting in a surge of repeat bookings.To drive engagement and maximize sales, we gamified various aspects of the customer journey. Points were awarded for actions like writing reviews, early check-ins, prepaying for meals, and inviting guests to the platform. We also implemented visibility of potential savings through rewards at the start of the booking funnel, significantly impacting user behavior.
Sealing the Deal
With strong product validation, we approached remaining hesitant property owners with a strategic proposal: joining Club Infinitum would likely increase their income, while non-participation might result in lower prioritization compared to participating properties. This approach successfully brought most stakeholders on board.
In the two years since its launch, Club Infinitum has generated over $4 million in revenue across 6000+ bookings, demonstrating its effectiveness in driving customer loyalty and business growth.
