Details revealed in TTG’s Top 50 Insight report this year showed loyalty schemes are on the rise, with 38% of finalists offering them, up from 29% last year. Among luxury agencies however, opinion seems split on how official to make “thank you” perks – but many do have plans in place.
Two years ago, Designer Travel introduced an app to formalise its referral rewards which the agency says is based on “Quidco-style” cash-back systems.
Clients can earn £10 for every £1,000 spent on their travels, which can be redeemed as cash, a charity donation or a future holiday discount; most choose the latter.
Some homeworkers use the app for selected clients, some not at all. Others use it alongside ad hoc gifts, while some have used the system to reward referrals from local partner businesses such as wedding dress shops and beauty salons.
Separately, Designer Travel has run rewards on a B2B level, supporting employee incentive schemes for large companies such as M&S by providing travel vouchers or setting up holiday competitions.
The referral app development costs, borne by HQ, and the rewards paid by the agents – collectively £165,000 in the first 12 months – may seem big expenses when Designer Travel’s repeat business is around 90% anyway. But managing director Amanda Matthews believes it pays for itself in increased referrals.
“For us it’s a better way [to market] than paying Google to keyword advertise; we’re utilising our clients,” she says. “We just give our homeworkers the opportunity to share with the clients they feel it will work with. It’s another marketing tool to help them grow their business.”
Select World Travel owner Hannah Vincent also believes it’s worth splashing the cash to keep top clients.
“It’s not official, but our regulars who spend a lot with us [are given] added value, which could be a return airport chauffeur from home to Heathrow for example,” she says. “It might cost me £300 or £400 but we’re elevating their whole holiday experience.”
Delmar World meanwhile classifies certain clients as Ambassadors. Managing director Ann Anglesea says they’re identified by “the way they enhance our brand through word-of-mouth and the customers they refer to us”.
Personal touch
Ambassadors receive personalised perks such as a case of a favourite tipple, a spa treatment or a holiday excursion the team know they’ll love.
“We get this information from building relationships with our clients and knowing their interests,” Anglesea says. Ambassadors – along with top clients – were also invited to the agency’s 60th birthday riverboat party last year.
Murray Travel also believes in an individualised approach. Besides inviting VIP clients to dinners and cheese and wine evenings, it gives considered gifts.
“We try to make it a bit more personal. We might send a restaurant voucher if we know they like to eat out,” explains director Scott Murray. Afternoon tea vouchers and gin tastings have been among other treats.
The agency has received its own reward in increased repeat bookings and referrals.
“Probably it’s the fact it’s a bit more tailored, it’s more personal, it’s not a case of ‘scan your Nectar card and get the points’. We reward clients on their level,” Murray says.
Even chocolates or hampers for more everyday referrals will be locally produced and arrive with a handwritten note. Similarly, only good wine is served at client events.
Quality is important, stresses Murray: “What we are trying to create is a lifestyle. When clients go into a Four Seasons, they’ve got an expectation of what that’s going to look like; that’s what we want with us too.”
He adds that allowing clients to bring friends to thank you events subtly allows these potential new customers to “experience the lifestyle benefits of booking with us”.
The goodwill generated often extends further than the outlay, Murray points out.
For instance, when the agency lays on a dozen tickets to the theatre with pre-drinks and dinner, not everyone first invited will be able to attend but all those asked, “will feel looked after”.
