Lacek Develops Breakthrough Hotel Loyalty Program for Starwood Hotels & Resorts

Challenge:
Develop a frequent guest program that: 1) consolidates the legacy programs of Westin Premier and Sheraton Club International, 2) breaks through the marketplace clutter and 3) increases customer loyalty and stays.

Solution:
The Lacek Group followed an established and proven program development process to address the following program components: program design, communications, systems, operations, partnerships, franchises and training. Task forces and a steering committee were established and led by agency and client teams. Unprecedented loyalty program challenges were addressed, including multiple and varied hotel brands, international currencies, differing partnership agreements and customer overlap.

Extensive research was implemented, uncovering one key insight that made Starwood Preferred Guest an unequaled success: members are less concerned about how fast they can earn rewards than how easily they can use them without restriction. Leveraging this insight, Lacek broke the hotel rewards program mold and designed a program that offered rewards with no blackout dates and no capacity controls. Additional innovations included paperless redemption, a simple program structure offering a 1:1 points-to-miles exchange ratio and Instant Awards at individual hotels.

Results:
Membership grew 124% in the first year, with share of occupancy growing 114% over three years. Additionally, the program has successfully increased customer loyalty as evidenced by the votes of frequent travelers, naming Starwood Preferred Guest hotel "Program of the Year" at the annual Freddie Awards for six consecutive years.