Wyndham Hotels Localising A Loyalty Programme In China. Iclp Gm Kevin Yeow
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. 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. 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. 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. Adapting to the Chinese Member
Language &
Culture
Relevancy Earning & Burn
‘’This is China’’
Proposition
Local
Promotions
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. 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. 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. Samples of handwritten addresses
Appearance Delivery Time
Minimize Return Mail Postage Costs
10. Earn & Burn Strategy
Earn
• 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. China Partner Portfolio
Earn Burn (non-hotel partners)
Branded
electronic
items
Cash
Vouchers
WR
Premiums
China Airlines (4) China Redemption Items (30)
12. Global Promotion Platforms
Double Points Stay twice earn
a free night
Language and Visuals adapted to the local market
13. Local Tactical Promotions
Stay & Earn Stay & Earn Stay & Earn
Expo Tickets A Luxury Hotel Stay China Mobile SIM
Keeping it innovative & relevant for the China market
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. ‘This is China’ – Intervention
Control Insulation
Sensitivity Domestic
Non – Free Market Forces
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. ‘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. Wyndham Rewards Localization
Consultancy & Online Member Core Local Promotions &
Program Planning Acquisition Communication Campaigns
Partnership Redemption Member Hotline Program
Development Sourcing Operations
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. 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
Yào
Don’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
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. 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 world's 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 - it's 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.
