"Tiered Loyalty Program" -- any ideas?

[LauraLea]

An extra month booking window, so instead of 11/7, it will be 12/8.

I certainly hope not. I would rather see 10/6 and 11/7.

Actually I would prefer 9/5 and 10/6. It would cut down on the number of calls to MS. Less time for people to keep changing their minds and changing dates and resorts. Certainly would help out those of us who cannot always plan 1 full year in advance.

Laura

 

[dianeschlicht]

I figure they will set the bar at 450, and I own 449!

 

[BWV Dreamin]

Just a FYI.....rumor mill has that some type of tiered program is going to start after March 20th. The rumor I am hearing is that any NEW direct purchases from NEW owners will get some benefit tied to points (park tickets?) It is going to be based on number of points. For current members to get this deal, any future points added on must be DIRECT, not resale. (Any new resale points acquired after March 20 will NOT count towards this tiered program). So far, just a rumor.......

 

[JimMIA]

As to the suggestion about Program Fees, I was told definitely not. That this would be about rewarding owners with more points not about punishing anyone with less.

The problem is, even medium-sized point owners are being "punished" (your word, not mine) now by being forced to carry the costs of administering accounts composed of multiple small contracts.

An owner with one 300-point contract pays the same as an owner with six 50-point contracts, but the real costs of administering those six contracts is much greater than the multiple-contract owner is paying. They're getting a free ride.

It's not a question of "punishing" anyone -- it's a question of having everyone pay their fair share of the costs that apply to their account, and NOT paying someone else's costs.

 

[JimMIA]

Just a FYI.....rumor mill has that some type of tiered program is going to start after March 20th. The rumor I am hearing is that any NEW direct purchases from NEW owners will get some benefit tied to points (park tickets?) It is going to be based on number of points. For current members to get this deal, any future points added on must be DIRECT, not resale. (Any new resale points acquired after March 20 will NOT count towards this tiered program). So far, just a rumor.......

That's sort of along the lines of what I'm expecting.

What about existing owners who don't add on? Would they not receive any "tiered" benefits until they do an add-on?

 

[dianeschlicht]

That's sort of along the lines of what I'm expecting.

What about existing owners who don't add on? Would they not receive any "tiered" benefits until they do an add-on?

I was wondering that too. We have added on twice....both times direct from Disney. We have no need for more points, so if they don't offer the tiered benefits unless you add on again, that would be a "punishment" as far as I'm concerned. I would get nothing for my loyalty.

 

[maburke]

Extended Banking Privileges
Owners of large point accounts probably take more trips than most, and an extended banking deadline would be a real benefit. This would cost nothing, would have no effect on owners of smaller accounts, but you'd want to keep it as simple as possible.

So, just for the sake of argument, lets suggest this setup:

• < 500 points - the current 8 month banking period (this is my group, incidentally)
• 500-999 points - unlimited banking through 10 months
• 1000 and up - unlimited banking at any time during the UY

Don't you think this would wreak havoc with the system? If the people who could bank on the last day of the year were the people with thousands of points, there would be no control on points moving into the next year. They would have no idea how much inventory could be used in the last few months of the UY. I'm not sure I'm making this clear, especially considering all the UY's at once, but I'd guess that this would lead to a banking being suspended situation.

 

[JimMIA]

Don't you think this would wreak havoc with the system? If the people who could bank on the last day of the year were the people with thousands of points, there would be no control on points moving into the next year. They would have no idea how much inventory could be used in the last few months of the UY. I'm not sure I'm making this clear, especially considering all the UY's at once, but I'd guess that this would lead to a banking being suspended situation.

I don't think so. The fact that you defer the use of points to a subsequent UY doesn't affect inventory as far as I know. They still have the same inventory, just theoretically more points competing for those villas. AFIK, the only thing that changes available points inventory is points bookings and exchanges OUT of DVC (because that inventory goes to the company providing the exchange).

Remember we used to have a situation where we could bank 100% up to six months, up to 50% by 8 months, and 25% as late as 9 months. I know the current 100%/8 months scheme is neater and cleaner for DVC, but I'm sure other options could be accommodated pretty easily.

 

[JimMIA]

I was wondering that too. We have added on twice....both times direct from Disney. We have no need for more points, so if they don't offer the tiered benefits unless you add on again, that would be a "punishment" as far as I'm concerned. I would get nothing for my loyalty.

You're right, but their definition of "loyalty" may be "What have you done for me LATELY?"

Hopefully not, but we shall see.

 

[mjc2003]

That's sort of along the lines of what I'm expecting.

What about existing owners who don't add on? Would they not receive any "tiered" benefits until they do an add-on?

So if you bought 1000 points direct a month ago, you'll get nothing; if you bought 150 points on 3/21 direct, you'll get free park passes? Seems arbitrary, and seems like this isn't a tier system but instead another incentive program.

I don't think it'll be an incentive just for new buyers, but a permanent incentive program for all buyers who hold a large number of points.

Logic dictates that the only thing they have to tier is the points. So, either preferred booking based on # of points, maybe additional restaurant booking windows or discounts based on points, park pass discounts for large point holders..something like that.

I still don't get it, though. Am I going to spend thousands of dollars on more points and be tied to a huge, unsellable contract just to get more perks?

The question is, if any and all "upper tier" perks and future incentives are tied to direct purchases, what happens to resale? What happens to the hundreds and hundreds of contracts sitting idle right now? Between 3/20 and any exclusionary language in the next change, they are going to drive the resale prices into the ground....which is probably what they want, b/c then they'll start ROFR'ing all of them.

 

[mjc2003]

I don't think so. The fact that you defer the use of points to a subsequent UY doesn't affect inventory as far as I know. They still have the same inventory, just theoretically more points competing for those villas. AFIK, the only thing that changes available points inventory is points bookings and exchanges OUT of DVC (because that inventory goes to the company providing the exchange).

How would extending banking privileges create additional revenue? Any change will be tied to driving people to buy more points, not simply rewarding those who already have a lot of points. And people are not going to spend 10's of thousands of dollars and huge MF obligations just so they can bank more points. Fact is, many would like to add on but when faced with the realistic nature of life, work, school and planning, adding another trip or two a year is not in the cards.

 

[drusba]

Just a FYI.....rumor mill has that some type of tiered program is going to start after March 20th. The rumor I am hearing is that any NEW direct purchases from NEW owners will get some benefit tied to points (park tickets?) It is going to be based on number of points. For current members to get this deal, any future points added on must be DIRECT, not resale. (Any new resale points acquired after March 20 will NOT count towards this tiered program). So far, just a rumor.......

That is obviously not a tiered loyalty program but just one creating new incentives for new purchasers. Any free park tickets if offered are not likely to be indefinite because of cost. In other words, as a sales incentive they could give away free tickets for one trip but they are likely not going to return to the OKW days in the 1990s when purchasers got free tickets to the parks every year.

In other words if that is what they are going to anounce then it is not a tiered loyalty program. The thing is that is possible that what you mention is in fact what Lewis was referring to at the annual meeting rather than any true loyalty program particularly since he mentioned the program may also apply to those who bring in purchasers -- that aspect of it is also just an incentive for generating new purchases and not an actual loyalty program. Thus I suspect your rumor may actually be a possiblity of what will be announced.

 

[friends with mickey]

So if you bought 1000 points direct a month ago, you'll get nothing; if you bought 150 points on 3/21 direct, you'll get free park passes? Seems arbitrary, and seems like this isn't a tier system but instead another incentive program.

I don't think it'll be an incentive just for new buyers, but a permanent incentive program for all buyers who hold a large number of points.

Logic dictates that the only thing they have to tier is the points. So, either preferred booking based on # of points, maybe additional restaurant booking windows or discounts based on points, park pass discounts for large point holders..something like that.

I still don't get it, though. Am I going to spend thousands of dollars on more points and be tied to a huge, unsellable contract just to get more perks?

The question is, if any and all "upper tier" perks and future incentives are tied to direct purchases, what happens to resale? What happens to the hundreds and hundreds of contracts sitting idle right now? Between 3/20 and any exclusionary language in the next change, they are going to drive the resale prices into the ground....which is probably what they want, b/c then they'll start ROFR'ing all of them.

There is something else available to tier besides points and to me it is the real meaning of loyalty, and that is length of membership. The folks that bought in
at the beginning 1991-1992, the first year, would seem to be the most loyal. So they could tier it by years of ownership. If it is a program based on size of membership in points, then please do not call it a loyalty program but a reward program. My hope is Disney will take length of ownership into consideration when designing their reward system but my suspicion is that they will not.

 

[mjc2003]

There is something else available to tier besides points and to me it is the real meaning of loyalty, and that is length of membership. The folks that bought in
at the beginning 1991-1992, the first year, would seem to be the most loyal. So they could tier it by years of ownership. If it is a program based on size of membership in points, then please do not call it a loyalty program but a reward program. My hope is Disney will take length of ownership into consideration when designing their reward system but my suspicion is that they will not.

With all due respect, I totally disagree. Firstly, loyalty in their eyes IS the size of the membership; if you have 500-1000 points and make 3 trips a year and spend a lot of money, you ARE more loyal. Also, rewarding members based on length of membership is counter-productive b/c no amount of money can add to the length of any membership; they want to SELL something, so what would they sell? I can't spend money to be a 20 year member.
Also, there are people who have been members for 1,2,5 years who spend a fortune on 2-3 trips and 500-1000 points. They would take great umbrage with the notion that they are less loyal b/c they were in high school in 1991 and weren't yet a DVC member.

To Disney, loyalty IS the size of the membership. The more you add on, the more loyal you are. A tier system cannot arbitrarily dismiss members based on purchase year, but can subjectively classify them based on points; nobody will be offended. You want to be in the "upper tier"? Buy more points!

The million dollar question is, what will this "upper tier" provide by way of perks, and will it be enough to warrant spending the extra money?

 

[cvjw]

With all due respect, I totally disagree. Firstly, loyalty in their eyes IS the size of the membership; if you have 500-1000 points and make 3 trips a year and spend a lot of money, you ARE more loyal. Also, rewarding members based on length of membership is counter-productive b/c no amount of money can add to the length of any membership; they want to SELL something, so what would they sell? I can't spend money to be a 20 year member.
Also, there are people who have been members for 1,2,5 years who spend a fortune on 2-3 trips and 500-1000 points. They would take great umbrage with the notion that they are less loyal b/c they were in high school in 1991 and weren't yet a DVC member.

To Disney, loyalty IS the size of the membership. The more you add on, the more loyal you are. A tier system cannot arbitrarily dismiss members based on purchase year, but can subjectively classify them based on points; nobody will be offended. You want to be in the "upper tier"? Buy more points!

The million dollar question is, what will this "upper tier" provide by way of perks, and will it be enough to warrant spending the extra money?

I totally agree. We own 695 points, and spend lots and lots of money with Disney - we go for at least 3 weeks per year, and always bring other guests along with us to spend lots of money at Disney. I would have loved to have joined DVC when it started, but had just graduated from college and had no idea it was even around. I for one, would pay Disney a fee, or buy more points direct if the loyalty program was a good one.

 

[mic_KY_mouses]

I do not agree with the poster about length of ownership being a loyalty factor. I do, however, hope that they consider some sort of grandfathering of older members if the loyalty program excludes them (us) on any benefits.

 

[Sammie]

The problem is, even medium-sized point owners are being "punished" (your word, not mine) now by being forced to carry the costs of administering accounts composed of multiple small contracts.

An owner with one 300-point contract pays the same as an owner with six 50-point contracts, but the real costs of administering those six contracts is much greater than the multiple-contract owner is paying. They're getting a free ride.

It's not a question of "punishing" anyone -- it's a question of having everyone pay their fair share of the costs that apply to their account, and NOT paying someone else's costs.

Maybe punishing was not the right term, but I was assured the new loyality program would not cost me anymore than what the maintenance fees are.

I was also told they feel sure that the majority of the members will be very pleased.

Time will tell I guess.

 

[TisBit]

I firmly believe an tiered system will likely only affect perks or other non-essential ownership options. Everyone will likely remain on the same foot for bookings, etc...but ideas like special numbers to call, added perks, maybe waiver of the $95 fee for booking outside of DVC, etc will be the way that DVC goes.

I believe this for a couple of reasons...they did not overextend on the resale vs direct purchase issue. They could have easily made it much more restrictive for resale contracts if they wanted to, so I don't see them being harsh in a loyalty program.

With the loyalty program it will be far more exclusive than inclusive. They will not try to get as many people in a top tier as they can, it defeats the purpose. So length of ownership will not come into play, it will be completely points based. You will likely see most owners complaining about the program because they will feel they should be in a higher tier for whatever reason. But, the point of the program is to get people to buy more points and obtain a higher status. If they do it on length of ownership, eventually everyone will be in the top tiers and the point of the program is lost.

 

[BWV Dreamin]

That's sort of along the lines of what I'm expecting.

What about existing owners who don't add on? Would they not receive any "tiered" benefits until they do an add-on?

That's what I'm hearing. Question is, are only new points added on direct after March 20 included in the tiered program, or are ALL points in an owners account counted towards the new tiered program?

 

[BWV Dreamin]

I too was thinking what is the difference between "incentives" and "tiered program"? Except this rumor is based on number of points purchased and is not tied to "dollars off" incentives like in the past. Fine line, it will be interesting to see how it is structured.

That is obviously not a tiered loyalty program but just one creating new incentives for new purchasers. Any free park tickets if offered are not likely to be indefinite because of cost. In other words, as a sales incentive they could give away free tickets for one trip but they are likely not going to return to the OKW days in the 1990s when purchasers got free tickets to the parks every year.

In other words if that is what they are going to anounce then it is not a tiered loyalty program. The thing is that is possible that what you mention is in fact what Lewis was referring to at the annual meeting rather than any true loyalty program particularly since he mentioned the program may also apply to those who bring in purchasers -- that aspect of it is also just an incentive for generating new purchases and not an actual loyalty program. Thus I suspect your rumor may actually be a possiblity of what will be announced.