There are many advantages to having a customer loyalty program. Customers enrolled in loyalty programs tend to buy more than non-loyalty members, remain customers longer, and are more likely to recommend the company to friends. But one other aspect of loyalty program members is that they tend to read their statements more so than they do other direct mail.

Hotel chain Best Western International discovered this and created loyalty statements that incorporate marketing messages to customers. As a result, the company boosted hotel stays and revenue.

"We had never thought of statements as a response vehicle," says Ryun Lambson, marketing programs manager at Best Western. But the company soon realized it had an opportunity to enhance a valuable customer touchpoint. Working with the CMO Council and transpromo firm InfoPrint, Best Western began its enhanced statement program in August 2008.

The company identified 100,000 loyalty program members who had opted only to receive paper statements, which are sent out three times per year. The statements are the only time Best Western communicates with these customers. So for Lambson and his team it was a golden opportunity to market to them in a way they prefer. "I think it's a wonderful opportunity to be able to talk to these people," he says.

Traditionally, information printed on the statements comprised each customer's points earned, a list of previous stays, and other account details. The company included three promotional inserts along with the statement. That was a waste of resources, Lambson says.

"People tend to discard the inserts and never even look at them," he says. "It was taking up time to print, it cost more to mail them, and it wasted paper." So the company incorporated the marketing message from the inserts onto the actual statements. Best Western piloted the program with 50,000 random loyalty club members. The other 50,000 received traditional statement and separate inserts.

The September 2008 statements sent to the pilot group were redesigned to show the points and account information, along with three marketing messages: one promoting its fall getaway deals, one offering discounts from a vendor partner, and one about the Best Western Rewards MasterCard. Lambson says the company took the messaging one step further by customizing the credit card promotions. For customers who already had the credit card, the offer encouraged the customer to use it. For non-credit card holders, Best Western encouraged them to sign up.

"With only three chances to speak to these people a year, it's vital that we are relevant to them," Lambson says. "People do look at loyalty statements longer than a piece of direct mail. We have their attention for a little longer than normal, so it's vital to take advantage of that."

As a result, Best Western saw a 39 percent lift over the control group in hotel stays during the fall, and a 30 percent lift over the control group in revenue generated. The MasterCard promotion saw even more success. There was a 500 percent lift over the control group in the number of applicants for the Best Western Rewards MasterCard. And while the control group had an impressive ROI of 178 percent, the pilot group saw a 278 percent ROI.

Lambson keeps his future plans close to the vest, but does say that the company is very pleased with the results and his team is evaluating the best way to move forward. "There is a world of possibilities," he says.