Looking-forward or looking-back: Feedback strategies in tier-based hotel loyalty programs

Abstract

This research note examines an important yet unexplored issue in tier-based hotel loyalty programs: how to customize progress feedback to motivate members to retain their tier level. The results show that a looking-back (looking-forward) feedback strategy that emphasizes members’ completed (remaining) progress is effective in motivating low-tier (high-tier) members to retain their tier level. Furthermore, the perceived importance of tier level was confirmed as the underlying mechanism that explains the effect of progress feedback on high- and low-tier members. This study contributes to loyalty program research and practice by verifying feedback framing as an effective strategy that can help hotel firms to retain their members from different tiers.