Maximizing Value Through Loyalty Rewards: Strategic Development and Execution
"MODIV provided incredible support. This was a challenging mission, and MODIV stepped in at a critical time, giving a struggling team the confidence and direction they needed. We now have a solid foundation to build upon."
- 01 APPROACH
- 02 MAKING MOVES
- 03 DELIVERING VALUE
Additionally, MODIV had to navigate complex organizational dynamics, including how the point redemption functionality would integrate with the parent company’s existing loyalty program. The integration of several new software systems further complicated the project. Despite these challenges, MODIV remained focused on the project's objectives, driving toward successful implementation.
Despite the project's long history, there was significant misalignment across the various stakeholders. Many team members were unclear on the objectives, the purpose, and their own role in the project. Given this confusion, our first step was to take a step back and articulate the project's goals on a single page, which we then socialized across multiple teams. This allowed us to develop a comprehensive business case that outlined the importance of the "Payment with Points" functionality and enabled MODIV to quickly identify three critical workstreams:
- Financial Model and Point Value Definition: MODIV developed a financial model that defined the point value. This model balanced profitability for the client while improving the reimbursement percentage for hotel owners and maintaining value for members.
- Automated Invoicing Solution: A major pain point was the manual invoicing process. MODIV identified a path to automation, significantly reducing the time and effort required to process over 5,000 invoices annually. This not only streamlined operations but also improved accuracy and efficiency.
- System Integration Requirements: MODIV coordinated across multiple systems—CRS, PMS, CRM, and SAP—to create a comprehensive requirements document. This blueprint provided the technical teams with clear steps for seamlessly integrating the "Payment with Points" functionality across the client's systems.
MODIV's efforts brought the client's loyalty rewards program up to industry standards, closing a competitive gap that had persisted for years. By aligning the financial model, automating invoicing, and laying out a clear technical roadmap, we provided the client with a solid foundation for future loyalty program developments and enhancements.
Building the foundation for future loyalty program developments. Establishing the foundation towards a global program with H World China. Closing competitive gaps. Improving overall operational processes, avoiding timely and manual invoicing. Enabling a seamless booking flow. And all this will be done to improve the overall attractiveness of the rewards program, increase IDS share, improve RevPAR through dynamic pricing, build loyalty among the member base, and improve guest experience and satisfaction.
The progress made within just seven months was a testament to MODIV’s ability to drive complex projects forward, even in a challenging environment. The client expressed their appreciation for the clarity and direction we brought to the project, noting the significant progress achieved in such a short time.
Solution will close competitive gap among competitive loyalty programs.