Now Built the Way People Travel – Choice Hotels’ Choice Privileges has Changed! (#730)

Nandika: We have over 4,000 properties.

Nandika: We have a very unique portfolio.

Nandika: 4,000 of our properties are within a mile of an interstate exit.

Nandika: Our marketing strategy is based on the insights that our guests, no matter how much they’re paying for a room, whether it’s an upscale room or an economy room, they’re trying to get maximum value from the brands that they engage in.

Nandika: Loyalty is about getting consumers to come back to the brand again, to get them to either spend with a co-branded credit card or with a core brand.

Nandika: For loyalty to work effectively, it has to be grounded.

Nandika: It has to be centered around consumer insight.

Nandika: I’m actually a really strong believer that for loyalty to be effective, it has to be integrated in the entire ecosystem of the brand as well as all the customer touch points.

Nandika: Loyalty is not a soft tool.

Nandika: If done right, loyalty can and does drive strong business results and sustainable growth.

Nandika: Most effective and efficient loyalty programs are one that are based on consumer needs.

Nandika: If you’re designing and giving customers the value that they want or the benefits that they want, that is a competitive advantage.

Nandika: It’s really important to measure the loyalty KPIs.

Nandika: It’s how you learn what’s working and what needs to evolve.

Paula: Hello and welcome to Let’s Talk Loyalty and Loyalty TV, a show for loyalty marketing professionals.

Paula: I’m Paula Thomas, the founder and CEO of Let’s Talk Loyalty and Loyalty TV, where we feature insightful conversations with loyalty professionals from the world’s leading brands.

Paula: Today’s episode is part of the Wiser Loyalty Series and is hosted by Aaron Dauphinee, Chief Marketing and Business Development Officer of the WISE Marketeer Group.

Paula: The WISE Marketeer Group is a media, education and advisory services company providing resources for loyalty marketeers through the WISE Marketeer digital publication and the Loyalty Academy Programme that offers the Certified Loyalty Marketing Professional or CLMP designation.

Paula: I hope you enjoyed this episode brought to you by Let’s Talk Loyalty and Loyalty TV in partnership with the WISE Marketeer Group.

Aaron: Hi everyone, welcome back to another edition of the Wiser Loyalty Podcast Series.

Aaron: This podcast series is nearly two years old and is brought to you each month in partnership with Let’s Talk Loyalty and the WISE Marketeer.

Aaron: If you don’t know me by now, well, I’m Aaron Dauphinee, your host for today’s edition and I’m currently the CMO here at the WISE Marketeer Group or sometimes we go by WMG for short.

Aaron: The WISE Marketeer Group CEO Bill Hanifin and I have supported Let’s Talk Loyalty since Paula launched many years ago, but it wasn’t until about 2024 when she asked us to start sharing our thoughts and insights.

Aaron: In that first year, we focused on some of the loyalty constructs and topics from our core curriculum at the Loyalty Academy, which leads individuals towards obtaining their Certified Loyalty Marketing Professional Designation, or we like to say CLMP for short.

Aaron: We tackled one course per month to hit on about four or five highlights each week for every month.

Aaron: But in 2025, we then shifted our focus, as well as the frequency, to align our format to those of the other hosts at Let’s Talk Loyalty with these individual one-to-one conversations every month.

Aaron: So Bill and I, while we focused this conversation for the WISE Loyalty series, to be with practitioners of our trade, such as those in our CLMP community, but also those who are executives and senior marketers who are leading from the C-suite.

Aaron: So twice a month, we now bring you an interview with a C-level executive, excuse me, a loyalty leader or a CLP who’s transformed their strategy into practical application and then generated strong business results from customer loyalty.

Aaron: So today, I’m very pleased because Paula and the team introduced me to a guest that I’m very thankful for.

Aaron: We talk a lot about women loyalty leaders at the WISE Marketer, including highlighting many through our Women in Loyalty Interview Series.

Aaron: And today, we have an individual that’s been leading in loyalty, both travel and retail loyalty, specifically for about 25 years.

Aaron: And this is her second time on the show.

Aaron: Paula interviewed her a number of years ago when she was at a different firm.

Aaron: But I’m very pleased to be talking with you today, Nandika Suri, who is the vice president of Loyalty Cobrand Card and Partnerships for Choice Hotels International.

Aaron: Welcome, Nandika.

Nandika: Thanks, Aaron.

Nandika: Really great to be back here.

Aaron: Yes, great.

Aaron: I love that we have returning guests with new perspectives and new roles.

Aaron: So we’ll get into that in just a second.

Aaron: But I guess I’d start by saying that this is a relatively new role for Nandika.

Aaron: But don’t let that mislead you because I don’t think that time is a good measure of success and impact.

Aaron: In fact, we’re going to talk about all the things she’s already done in just over a year at Choice Hotels and enhancing the Choice Privileges program.

Aaron: So Choice Hotels, for those of you who aren’t aware of it, is one of the largest hotel chains globally.

Aaron: Offers of about 7500 franchise properties across 47 different countries and territories with well-known brands that you would see, such as Cambria Hotels, Comfort Hotels, Woodspring Suites.

Aaron: And in 2022, they actually required Radisson and its banner properties, including the Park Plaza properties that operate within the Americas.

Aaron: So prior to joining Choice Hotels, Nandika led Global CRM, Loyalty and Personalization as Under Armour’s vice president for customer loyalty initiatives.

Aaron: She guided them through the pandemic and back to more of a quote unquote normalized state, I would say.

Aaron: And I know there’s learnings for us there that she’ll share later in our conversation, but prior to that, she was at United Airlines and she was tantamount to helping build and evolve the Mileage Plus program for UA.

Aaron: She was tackling increasingly senior roles that covered strategy and product development, profitability, and predictive modeling.

Aaron: And this includes when United purchased Continental Airlines.

Aaron: She led the integration of the two programs that then put her in stewardship and innovation within the Mileage Plus program.

Aaron: And she led the development of strategical and tactical roadmaps for that program.

Aaron: So wow, what a truly impressive career, Nandika.

Aaron: Is there anything that I missed that our listeners should know more about your background or more about Choice Hotels or even Choice Privileges before we dive in deeper?

Nandika: Yeah.

Nandika: Thanks to Aaron for the very kind introduction.

Nandika: I’ll maybe just add a couple things.

Nandika: Throughout my career, I have been a change agent, someone who really helps drive transformation and growth.

Nandika: At Choice, we’re actually at a very transformational stage.

Nandika: We are evolving beyond our core brand and expanding into segments like upscale as well as extended stay.

Nandika: We’re also growing our international footprint.

Nandika: I think what’s the most exciting part of this journey is the evolution of Choice Privileges.

Nandika: Earlier this year, we made significant enhancements to our Awards Night Program.

Nandika: We’re really being recognized in the industry for that.

Nandika: We were recognized as the number one Hotel Rewards Program by Wallet Hub as well as the US News and we’re not stopping there.

Nandika: We just announced another round of changes that are going to affect next year, and I’m really looking forward to discussing those.

Aaron: Yeah, no, for sure.

Aaron: Let’s get into that.

Aaron: But first, congratulations on those awards.

Aaron: That’s wonderful to hear and see.

Aaron: Let’s get into that.

Aaron: I’m excited, as I said, for this conversation.

Aaron: But first, as we always start out with, and you know this from being here with Paula before, we want to get to know our conversationalists a little bit more.

Aaron: And so peel back the onion, as they say, and beyond just your career highlights and those accolades.

Aaron: And really would like to know what’s on top of your mind right now.

Aaron: And the better way to ask this is what’s inspiring you in terms of the things that you’re reading about.

Aaron: So what book are you currently reading and why or what’s the most fruitful takeaway that you have from that book so far?

Aaron: Maybe start there.

Nandika: Yeah, of course.

Nandika: I just finished reading The Loyalty Effect by Frederick Reichard.

Nandika: This is actually one of my, I’ve read this book before.

Nandika: I found myself going back to this because of kind of where we are at in our transformation journey with the program at Choice.

Nandika: I think the book does a really nice job of simplistically laying out how investing and building long-term customer relationships can really result in sustainable revenue, sustainable profits and growth for brands.

Nandika: And I think the reason I went back to that book is we’re actually at that phase right now where we’re looking to invest and further enhance our program.

Nandika: And so, it was a perfect time for me to kind of get grounded in some of the really simplistic ways in which he talks about loyalty framework.

Nandika: So I think that’s kind of what I’m reading right now and finding it to be very helpful.

Aaron: I love that.

Aaron: That’s a classic from the past that is still relevant to today and so you’re finding it as you pick it up and reread again to apply to Choice some new refreshed ideas as well as some reminders, I suppose.

Aaron: That’s wonderful.

Aaron: Very good.

Aaron: Let’s talk a little bit about how you came into Choice and from there, a little bit about what you’re trying to get out of building out a strong customer program for them but perhaps help us understand first, why did you want to come to Choice?

Aaron: What did you see was the opportunity to make very strong impact because you’ve had impact clearly in other organizations that you’ve been in.

Nandika: Yeah, I mean, first of all, I love the travel space.

Nandika: So that’s definitely one piece of it.

Nandika: But I think there were two main factors that kind of drew me to this opportunity.

Nandika: The first one is just the sheer diversity of the portfolio that Choice offers.

Nandika: You know, there’s so many different customer segments that we serve, and that kind of got me really excited.

Nandika: You know, as a loyalty person, you want to kind of design something that resonates with the base, and here you’re dealing with like a very diverse base.

Nandika: And so it was just a super exciting opportunity just from that perspective.

Nandika: I think the other piece is more from a personal standpoint.

Nandika: I had not worked in a franchisee, a predominantly franchisee business before.

Nandika: So for me, it was a chance to actually learn something new, but at the same time, contribute in a very meaningful way, given all my travel experience.

Nandika: So it was a really great combination of both a challenge as well as an opportunity that made this really compelling for me.

Aaron: Oh, I like that a lot.

Aaron: And things are always different once you get into a company versus what you see before joining.

Aaron: You’ve been there just over a year and you’ve done a lot.

Aaron: And we’ll talk even more about that in just a second.

Aaron: But has your ultimate ambition for the program changed or shifted this last year?

Aaron: Once you got into the organization and got familiar, did things evolve?

Aaron: I’m curious about your take because you talked about being a significant change agent and I’d like to get your viewpoint on that.

Nandika: Yeah, quite honestly, the opportunity at Choice has only continued to grow.

Nandika: As I mentioned before, we are actually growing both, since the time I’ve got here, we are growing both domestically as well as internationally.

Nandika: And that makes the opportunity for loyalty even more exciting.

Nandika: Coming into Choice, I knew that I was stepping in into a pretty strong foundation.

Nandika: We have over 70 million members worldwide and our program is growing.

Nandika: So it was really a strong point to start.

Nandika: But as I’ve dived into the business, I can see and I’ve been able to shape more the depth, as well as the breadth of what is possible.

Nandika: As I mentioned before, I was truly impressed with the sheer variety that we have in our portfolio.

Nandika: And it really opens up tremendous opportunities from a loyalty perspective.

Nandika: How do you attract different types of customer segments?

Nandika: How do you provide benefits and rewards to different types of customer segments?

Nandika: So that’s the lens that I’m actually bringing in.

Nandika: And just to share a couple of stats, we have over 4,000 properties.

Nandika: We have a very unique portfolio.

Nandika: 4,000 of our properties are within a mile of an interstate exit.

Nandika: And we have properties that are close to beaches.

Nandika: We have properties that are close to sporting locations, sporting stadiums.

Nandika: So that really opens up how we can actually talk about our program and how we can actually make it more meaningful for so many diverse set of customers.

Nandika: So that’s the lens that we’ve been bringing in.

Nandika: In addition to obviously looking at the program structure, the program design and benefits, we’re also going to continue to evolve the program in areas of partnerships, bringing new partners, new rewards, just that resonate with the passion point of our consumers.

Nandika: So that’s something and really keeping us abreast with the trends.

Nandika: Another dimension, in addition to doing all these customer facing changes, we’re also looking at our backend technology.

Nandika: And we’re also enhancing that.

Nandika: We recently entered into a partnership with or entered into a relationship with Faden to provide us an offer and loyalty tool.

Nandika: So really enabling us to do and to be able to reach our diverse set of guests even better.

Aaron: That’s interesting.

Aaron: Maybe we can double click a little bit more.

Aaron: Maybe not so much on Faden and your partner, but just as you’re trying to get to the diverse set of customers that you have.

Aaron: You already mentioned Choice Hotels encompasses franchise operated properties.

Aaron: You’ve got multi-banners, right?

Aaron: You’re a house of brands to some degree, and that’s very different than what you would have had at Under Armour, as well as at United to some degree.

Aaron: So they’re kind of solo branded organizations.

Aaron: So can you talk us through a little bit more about those different customer types that you’re trying to influence with the loyalty mechanics?

Aaron: And Choice Privileges has to be in service of many different guests.

Aaron: You’ve talked about a little bit like that.

Aaron: How is it different for you in terms of what you’re doing at Choice versus the other two organizations where it was more of a solo branded house, so to speak?

Nandika: Yeah, absolutely.

Nandika: So at Choice, as I mentioned before, we have a very diverse portfolio.

Nandika: And so we have the ability to reach out to a really different range of customers.

Nandika: I’ll share a few examples.

Nandika: We cater and serve the upscale customer, the upscale business traveler, and these customers stay at our properties, such as the Cambria hotels that we talked about earlier.

Nandika: We also are a great choice for families that are taking a road trip, as I mentioned before, 4,000 of our properties are close to an interstate exit.

Nandika: So with brands like Comfort Hotels, they have an ability to actually engage with our brand.

Nandika: In addition to that, we also have customers that take longer business steps.

Nandika: Think about the traveling nurses.

Nandika: Think about contractors that are taking long-term contracts.

Nandika: They stay in our extended stay properties, such as our Everhome Suites.

Nandika: And then we also have the occasional traveler that’s looking to travel to a bucket list destination that they have.

Nandika: For example, somebody who wants to take a trip to a Caribbean can stay at our Alison Blue in Aruba.

Nandika: So we really have a great diversity and breadth of customers as well as a portfolio.

Nandika: And I think that’s an amazing opportunity from a loyalty perspective, because you can really think about how to tailor the program to the needs of these different types of customers.

Nandika: That’s the approach that we’ve been taking for our changes that we just announced, or the enhancements to our program that we just announced.

Nandika: In doing so, we reached out to over 2,000 customers that represent all these different segments, our economy, as well as our mid-scale, as well as our upscale guests.

Nandika: And we kind of, ultimately, you know, the design and the features that we’re introducing our program as a function of the inputs that we got from all these diverse set of customers.

Nandika: You know, customers told us that they’re looking for flexibility.

Nandika: They told us that they’re looking for awards within reach, more recognition.

Nandika: So all these dimensions are things that we heard from this diverse group of customers that we’re now integrating and enhancing our program with.

Aaron: Yeah, you hit on a soft spot for me personally.

Aaron: I love consumer research and in our own research that we’re doing, we’re seeing the same relevance in terms of the reward set, but also having the flexibility and choice.

Aaron: So that makes sense.

Aaron: No pun intended for your program name.

Aaron: But I think I ask this similar question or something along the lines to all of my guests, which is digging down a little bit one level deeper than what you’ve talked about.

Aaron: Can you help us understand or frame up for us, I guess, some of the strategies that are proving to be successful to get these guests into your properties?

Aaron: And it could be like you’ve identified a few different segments here.

Aaron: But more importantly, you’ve already touched on it and go deeper.

Aaron: Like what are the upcoming updates to the program that you recently announced that are going to help engage your customers more?

Aaron: Maybe you could talk more about that.

Nandika: Yeah.

Nandika: Yeah.

Nandika: And maybe I’ll take your first question first, which is kind of what strategies we’re finding to be impactful for our consumer base.

Nandika: I would kind of like to highlight two of them.

Nandika: The first one is really our broader enterprise strategy of travel maximization.

Nandika: Our marketing strategy is based on the insight that a guest, no matter how much they’re paying for a room, whether it’s an upscale room or an economy room, they’re trying to get maximum value from the brands that they engage in.

Nandika: So our broader enterprise campaign is based on that insight.

Nandika: The changes and enhancements that we’re doing to our program are built on that same insight and the same fundamentals.

Nandika: So how do we get customers to maximize the value that we kind of provide to them?

Nandika: The changes that we did earlier this year that are already in effect with our Rewards Night program helps make the Rewards Night benefit to the consumer more attainable.

Nandika: We expanded the booking window for the members so that they can actually book based on their different travel types of needs.

Nandika: We’ve had ability for members to be able to redeem their points for upgraded room type.

Nandika: So we added a lot of flexibility and made that program a lot more attainable, and that’s actually working really well.

Nandika: The reason I say that is we are seeing customers engage so much more with our Awards Night benefit.

Nandika: As I mentioned before, we’re also getting recognized with the awards with both with Wallet Hub and US News that I mentioned earlier.

Nandika: So that’s just one strategy that’s absolutely working really well for us.

Nandika: Another one that I want to highlight is really our experiential offering.

Nandika: Loyalty is about creating brand love and deepening that emotional connection with the consumer.

Nandika: And what we’ve done is we’ve expanded our offerings to include experiences that really resonate with the passion points of our consumers.

Nandika: Members have access to sporting events, they have access to college sports, NASCAR races, and I think that really helps build that connection more at an emotional level.

Nandika: So both when I think about the changes that I talked about, both on the rational side as well as the emotional side, those are really resonating with our customer base and actually we’re seeing strong results from them.

Aaron: Yeah, you hit the nail on the head I think there with balancing out the tangible rational elements for a reward program and then layering in the experiential to get to that higher order type of loyalty and connection.

Aaron: So that makes a ton of sense to me as well.

Aaron: You know, this stuff isn’t easy.

Aaron: I think it’s important to acknowledge there’s a complexity of implementing a loyalty program and in particular in a franchise organization.

Aaron: So, you know, things need to be thought through and delivered just a little bit differently.

Aaron: Can you shed some of your perspective on what’s worked for you at Choice Hotels, specifically as it relates to getting your franchisees on board?

Nandika: Yeah, absolutely.

Nandika: I think there’s one factor that I’ve seen effective in my prior career, like reading loyalty strategy in other organizations that I think applies really well to the franchisee environment as well.

Nandika: Loyalty is about building, getting consumers to come back to the brand again, to get them to either spend with a co-branded credit card or with a core brand.

Nandika: For loyalty to work effectively, it has to be grounded.

Nandika: It has to be centered around consumer insight.

Nandika: I think that’s what I’m finding has worked in prior industries that is also very applicable to how we’re approaching things here at Choice.

Nandika: If you think about loyalty, reward nights is the number one feature that somebody is looking for in a loyalty program.

Nandika: When we changed the program, it was really centered around that customer need that they’re looking for more out of their awards and we’re seeing some really strong results.

Nandika: The investments that we are making in the customer really help create that flywheel effect that really helps our franchisees as well as Choice.

Nandika: We know that if you give a strong value proposition to the customer that really results in a more engaged guess.

Nandika: A more engaged guess means more revenue for our franchisees and it’s also great for Choice because it really allows us to keep this flywheel going because we can then further make investments back into the loyalty program.

Nandika: That’s what I’m really seeing working is the fact that we grounded all of our enhancements and all the changes that we’re doing in Consumer Insight.

Nandika: Some of the stats that we share with our owners, they are very, very compelling.

Nandika: Members who engage with our loyalty program, they are two times more likely to come back for a second stay.

Nandika: They spend more with the brand.

Nandika: They spend 1.7 times more compared to a non-member.

Nandika: They come back and stay longer duration.

Nandika: On average, their length of stay grows by one day.

Nandika: And they are eight times more likely to book direct, which is also huge if you think about what it does from a cost perspective.

Nandika: So we see grounding things and basing them and centering them around the customer can really drive really strong financial outcomes.

Aaron: Yeah, those are great metrics that you put in.

Aaron: I love that last one where you’re talking about the ability to go direct to you, because you have then a bit more control even over the relationship and the outcome that can occur for that particular customer, because you know that they’ve chosen to go with Choice directly.

Aaron: So the travel sector, of course, as you know, and many others know, has been a long standing industry where loyalty has been utilized.

Aaron: But for the most part, it feels fairly programmatic, which there’s important elements to that.

Aaron: And you talked about experience and interactions that do matter.

Aaron: And they have this impact on a higher order brand loyalty and stickiness to a brand, particularly in more commoditized or highly competitive industries, such as the one that you’re operating in.

Aaron: Maybe talk to us a bit about the role and importance of employees or service reps when they’re physically on property, or even in the member care centers.

Aaron: I guess I’m trying to balance out the, how are you melding together the expectation by, I guess, for having the digital support in a program, whether it’s enrollment, participation, or just education with the program.

Aaron: But how are you balancing that with the human elements when people are at a particular choice property?

Nandika: Yeah, I know that’s a great question.

Nandika: I’m actually a really strong believer that for loyalty to be effective, it has to be integrated in the entire ecosystem of the brand, as well as all the customer touch points.

Nandika: I think when you think about particularly in the hospitality space, a customer comes to us in the digital channels, they’re calling us through the customer service, they’re chatting with us online, they’re showing up on our property.

Nandika: It’s so important for loyalty to be woven deeply.

Nandika: So as we’re thinking about all the enhancements to changes, and even the ongoing program communication, we are making a conscious effort to integrate loyalty in all these different touch points, whether it’s from a training perspective, whether it’s from how do we give the right incentives, offers at the right place.

Nandika: So we’re looking at all those dimensions as we work through our changes.

Nandika: I also think that in just the way organizations are set up, it’s so important for the loyalty function to be intrinsically and deeply woven with all the rest of the functions of the company.

Nandika: How the loyalty team works with digital.

Nandika: So both from an organization perspective and then also from a customer experience perspective.

Nandika: And I think that’s exactly the approach that we’re taking here at Choice.

Nandika: We are really woven into the functioning of all the areas which have an impact on the customer.

Aaron: Oh, I love that.

Aaron: That’s a classic way to get the best benefit and I love that you’re making those changes.

Aaron: Our observation here sometimes at The Wise Marketer is that for some brands and not all, there’s been a bit of a stripping away of value from their loyalty programs over the last couple of years and it feels like you’re going a different direction.

Aaron: I love the quote that was in the recent press release which I’ll paraphrase it, but building for the way people travel.

Aaron: I really do like that.

Aaron: Can you offer a bit of a perspective on what’s different for your approach to loyalty versus what you’re seeing in other hotelier programs or even loyalty programs in other sectors, whether it’s airline, retail, QSR, everyday spend?

Aaron: What’s the nuance that Choice is doing differently under your guidance?

Nandika: Yeah, I think in general, you’re right.

Nandika: We’re seeing a trend where a lot of brands are paring away value from their loyalty programs.

Nandika: I think what’s happening along with that is they’re also making the programs more complex to understand and we’re actually taking a very different approach.

Nandika: We’re actually enhancing the value that we’re providing to our guests.

Nandika: We’re also making it simpler and easier for members to understand our program.

Nandika: We will talk about the changes when we get to them.

Nandika: We believe that you shouldn’t have to be a business traveler that’s spending six months on the road to be really able to take advantage of your loyalty program.

Nandika: We’re designing the program around our different types of customers.

Nandika: There are some that are definitely way more frequent than others, but how do we make the program relevant for people that are not that frequent and make sure that we’re actually delivering value to them?

Nandika: I think that’s the approach that we’re taking.

Nandika: We know that when we give value to the customer, it drives more engagement and more engagement eventually plays out in the form of a repeat stay, which drives value for our franchisees and then ultimately for choice.

Nandika: That’s our approach on how we’re evolving our program, which is really centering around the value that we provide to our guests.

Aaron: I like that.

Aaron: If I heard that correctly, you certainly have KPIs and metrics that are important for the near-term, but you also said, you know eventually it’s going to result in something.

Aaron: There’s a bit of a longer-term view that’s being influenced as well too in this.

Aaron: That’s something that oftentimes loyalty struggles with because it gets caught in these quarter-by-quarter type metrics versus taking a larger year or even two-year type of view.

Aaron: That’s lovely to hear that as well too.

Aaron: Let’s look at this.

Aaron: Can you tell us a little bit about the upcoming updates for the program that you recently announced and how you’re engaging with customers now that these changes have come into effect?

Nandika: Yeah, sure.

Nandika: The changes that we’re making to our program is really to help provide more frequent rewards and more frequent recognition to our members.

Nandika: That’s really what we heard when we did the Consumer Insights work with them.

Nandika: In addition to that, we’re also adding more flexibility and choice, so members have more ways in which they can earn and use their points.

Nandika: I’ll just highlight some of the key changes that we’re making to our program.

Nandika: I think the first one is really we’re making it easier for people to achieve elite status.

Nandika: Each of our tiers will right now require five fewer nights, so you could become a gold member at five nights, a platinum at 15.

Nandika: So, you know, the thresholds for the tiers have kind of, you know, reduced.

Nandika: And that really makes it easier for consumers to hit status faster, to enjoy the rewards faster.

Nandika: So that’s one change that we’ve made.

Nandika: We’ve also added another way in which members can earn status faster, which is our elite qualifying credit.

Nandika: So by now spending at the property or spending on the Cobranded credit card that we have, our Choice Privileges MasterCard, you could actually hit status.

Nandika: If you’ve not stayed five nights, there may be another way for you to get into, to achieve the elite status sooner.

Nandika: We’ve also introduced a new tier for our most loyal guests.

Nandika: We’ve introduced the Titanium tier and that tier comes with a very unique benefit, which is the Titanium Travel Award.

Nandika: Members who are in this tier will be able to get one night for, sorry, they’ll be able to get a reward night for up to seven days at 50 percent of the points.

Nandika: So that’s really another way for us to thank and recognize and reward our most loyal guests.

Nandika: We’ve also introduced Milestone Rewards.

Nandika: So we will now have the ability to reward members for every five nights that they stay between elite tiers.

Nandika: So if you think about this, this is really helping customers to continue to earn rewards and recognition as they’re building their way to a higher status, it’s really helping creating more frequent rewards and recognition for them.

Nandika: We’ve also introduced what we call the Return and Earn Award, where members will now, if they come back and stay with us for the second or the third time in a year, they would actually get thousand additional bonus points for that.

Nandika: And if you think about that, in my mind, that is one of the biggest white space that we see in the loyalty space where there’s these elite customers that are getting very frequent rewards, but then there’s these members that stay in one time and there’s really no reason for them to engage, right?

Nandika: And the rewards are so much more unattainable.

Nandika: So we’re really making our program more within reach of more customers and really helping build that emotional connection that will keep them more engaged with us over time.

Aaron: Yeah, that’s good.

Nandika: Yeah, we also have added another feature where members are now able to share and transfer their points to another member.

Nandika: So that just adds flexibility of how they can use their points.

Nandika: And one of the feedback we hear from our elite members is if they do not achieve elite status, they just completely lose their status in a year.

Nandika: And so we’ve introduced this concept of soft landing, where if you’re an elite member, you don’t go down more than one tier in any year.

Nandika: And that way you can continue to enjoy your benefits on a more continual basis till you kind of start to build up your status again.

Aaron: I love it.

Aaron: I was going to say, and that’s why I apologize for cutting off, because I’m glad you continued.

Aaron: I like that you’re taking the earned velocity components and having some flexibility whether it’s spend or actual stays that can happen.

Aaron: That’s for en masse for everybody plus lowering the thresholds to just get into the program is going to make it more prosperous for people who are traveling at all different levels, as you said.

Aaron: So whether it’s folks who are traveling at the high end, okay, we’re going to even recognize you that much more with the titanium offering that you have, but then also those who are just only a couple of times a year, you still get value out of choosing Choice Hotels as well.

Aaron: That’s amazing.

Aaron: I think that’s something that, back to our conversation that we have around whether loyalty is stuck or not, I think that what you’re doing and putting into place for this program changes are really going to allow people to recognize Choice Hotel’s loyalty program is designed to reward me irrespective of the type of traveler I am and how I’m choosing to use the properties and stay at the hotel.

Aaron: So that’s wonderful.

Aaron: Glad to hear that.

Aaron: I think, before I ask my final question, because we’re getting close to our time here, building on what you just shared, perhaps I’ll open the floor to you a little bit to say, is there anything that you want to comment on or that you think our loyalty marketers and business leaders need to know that we haven’t covered today already?

Nandika: Yeah, I think there are just three thoughts that I’d love to part with.

Nandika: First one is loyalty is not a soft tool.

Nandika: If done right, loyalty can and does drive strong business results and sustainable growth.

Nandika: So I think that’s one.

Nandika: The other one I’ve talked about, the companies, the most effective and efficient loyalty programs are one that are based on consumer needs.

Nandika: If you’re designing and giving customers the value that they want or the benefits that they want, that is a competitive advantage.

Nandika: So grounding your program and designing it around consumer insights is really key.

Nandika: Lastly, I’m big on measurement.

Nandika: It’s really important to measure the loyalty KPIs.

Nandika: It’s how you learn what’s working and what needs to evolve and what needs to grow and what needs to change.

Nandika: So just keeping an eye on the metrics and seeing if they’re delivering kind of what you intend them to, I think is really key.

Aaron: Maybe if we can dig a little deeper on that, because everyone’s always talking about metrics.

Aaron: Are you able to share some of the core, like top three, top five metrics that really matter most for you at the Choice Hotel programs?

Nandika: Yeah, absolutely.

Nandika: I would say there are three broad categories and I’ll talk about them.

Nandika: I think the first one is all around the scale of the program and how engaged our guest space is.

Nandika: So think about the size of your member base, the size of your active member base, your attention and churn rates.

Nandika: The second category is more all around revenue and performance.

Nandika: So are your members, kind of what are they spending with you?

Nandika: How often are they coming back with you?

Nandika: What is your revenue on the Cobranded credit card?

Nandika: Things like those.

Nandika: Those are like really financial drivers.

Nandika: So there’s that category.

Nandika: And the third, which I think is the most important, because if you get that right, the other two kind of tend to follow, is all around customer experience.

Nandika: So are our members having a great customer experience and are they recommending us to others?

Nandika: And so looking at those, companies use their promoter score, they use satisfaction, but how, and we also look at things like elite recognition.

Nandika: So if those things are playing out, then you actually see guests feeling good, they’re signing up the program, spending more and I think all the other metrics kind of follow.

Nandika: So hopefully that kind of gives you a flavor of kind of how we look at it at Choice.

Aaron: Yeah, no, I like it a lot and I like the way that you framed it in terms of, you started with the typical program metrics that are at a high level and then moved in the financial and then said, oh, by the way, it’s actually the experiential and the engagement metrics that if you get these correctly, one and two will follow from three.

Aaron: So that’s a good way to frame it.

Aaron: I think that aligns very nicely with our ideology as well too.

Aaron: So that’s perfect.

Aaron: We’re wrapping up on time here in this conversation.

Aaron: It’s been wonderful.

Aaron: I think you’ve got a ton of nuggets that have come through this conversation for our listeners today.

Aaron: But before you go, maybe again, let’s bring it home and be a little more personal a little bit if you can, or it could be in a professional life capacity as well too.

Aaron: But one of the questions that Bill and I always like to end with, and it’s just our more natural state of being curious, is, you know, is there an epiphany moment, you know, one where you just thought in your life, this is why customer loyalty works.

Aaron: Like, can you share that moment with us if you have one?

Nandika: Yeah, no, I’m really happy to share my experience with my daughter, actually.

Nandika: She’s in college and she’s a member of the Sephora Loyalty Program.

Nandika: Sephora’s program has this benefit where you get a birthday reward.

Nandika: So if you go into the store in your birthday month, you get to choose between things that they have on display.

Nandika: Like, you can get to pick those things and you don’t have to make a purchase for that.

Nandika: So, you know, I always tell her, like, why are you going to the store for this?

Nandika: Just go online, order something and just get your gift with it.

Nandika: But it really, that benefit really drives her to the store.

Nandika: And invariably, this has happened now two years in a row, invariably, she walks out with all these other things that she never really wanted or needed.

Nandika: But now that she’s in the store.

Nandika: So, you know, I look at that and I say like, hey, you know, she was looking forward to that birthday reward.

Nandika: It really makes her feel special and it, you know, makes her feel rewarded and recognized, but it’s ultimately doing what it’s supposed to do, which is really getting her more engaged and getting her to spend.

Nandika: So, you know, I love that because it’s like a very simplistic form of loyalty, but I feel like it’s really done right.

Aaron: I love that.

Aaron: That is a constant conversation here amongst loyalty marketers, you know, the value of the birthday bonus or the birthday reward.

Aaron: And this is a great application in terms of retail that really strikes through.

Aaron: So thank you for sharing that.

Aaron: Wonderful.

Aaron: Nandika Suri, thank you so much for joining us today.

Aaron: As I said, I think there’s a lot of strong nuggets that you’ve provided.

Aaron: I wish you the best of success as you continue to grow the Choice Privileges program.

Aaron: And thank you again for taking the time to spend with us today.

Aaron: I also would do a quick thank you to all of our listeners for your time, because it’s equally as valuable as ours.

Aaron: And so thank you for listening.

Aaron: Have a good day, everyone.

Paula: This show is sponsored by Wise Marketeer Group, publisher of The Wise Marketeer, the premier digital customer loyalty marketing resource for industry relevant news, insights and research.

Paula: Wise Marketeer Group also offers loyalty education and training globally through its Loyalty Academy, which has certified nearly 900 marketeers and executives in 49 countries as certified Loyalty Marketing Professionals.

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