This case study examines how to develop relationship marketing with customers and examines the concept of customer profitability segments as a strategy for focusing relationship marketing efforts using Marriott International as an example. As there has been a shift from transactions to a relationship focus in marketing, customers become partners and the firm must make long-term commitments to maintaining those relationships with quality, service and innovation. Marriott Rewards Loyalty Program lies at the heart of the company's relationship marketing and delivers multiple confidence, social and special treatment benefits for its more than 35 million members. The Loyalty Program brings a real value to the company itself, in terms of economic benefits, customer behaviour and Human Resource Management benefits. Recurring hotel guests form a great basis for customer profitability segmentation strategy that is used for focusing relationship marketing efforts. Through utilising the customer pyramid that embraces six various groups of customers, from members to elite guests, Marriott International differentiates between customers, in terms of their amount of stays, as well as the value of money spent, that altogether reward customers with different benefit packages.

Marriott International rebrands its loyalty programme to Marriott Bonvoy (Published 17 January 2019)

Marriott International has unveiled Marriott Bonvoy, the new brand replacing Marriott Rewards, The Ritz-Carlton Rewards and Starwood Preferred Guest (SPG), as one single loyalty portfolio. Marriott announced it would be uniting its three legacy loyalty brands in August last year.

On February 13 Marriott Rewards Moments and SPG Moments will officially become Marriott Bonvoy Moments, with the combined program completing its integration under its new name. On this date Marriott will release a new, "simple, bold and modern" logo, rolling out Marriott Bonvoy branding across all consumer touch-points, including on property, marketing and sales channels, digital, mobile and co-brand credit cards in what is a multi-million-dollar global media campaign.

"Marriott Bonvoy marks an evolution in travel because it represents more than a loyalty program," said Stephanie Linnartz, Global Chief Commercial Officer, Marriott International. "Marriott Bonvoy is a travel program designed to bring to life our extraordinary portfolio of global brands in 129 countries and territories, while also providing endless inspiration for members to keep travelling and pursuing their passions."

With Marriott Bonvoy, members will have access to Marriott's portfolio of diverse brands including the largest collection of lifestyle and luxury properties around the world, and approximately 120,000 experiences in 1,000 destinations available for purchase or by redeeming points. These include excursions such as hiking into glacial Patagonia, desert treks on camelback in Morocco or cruising to Vietnam's timeless floating villages; or indulging in once-in-a-lifetime experience like cooking alongside renowned chefs Daniel Boulud and Eric Ripert, or honing football skills in a master class with Hall of Fame wide receiver Jerry Rice.

Members will earn on average 20 percent more points per dollar spent under the new program, with two new names for previous Elite status tiers also being launched. Marriott Bonvoy Titanium Elite will replace Platinum Premier Elite for members who surpass 75 nights, and Marriott Bonvoy Ambassador Elite will replace Platinum Premier Elite with Ambassador. This top Elite status tier recognises members who surpass 100 nights and more than USD$20,000 (approx. AUD$27,770) in spend annually. These members enjoy the highest level of personalisation with a dedicated ambassador to help plan their travel and cater to their needs one-on-one

Throughout 2019, Marriott will bring Marriott Bonvoy to life with a series of experiential events for members taking advantage of the company's marketing partnerships with iconic brands including the NCAA and the FIA Formula One World Champions, Mercedes-AMG Petronas Motorsport, as well as through sponsorships such as the Oscars, Coachella Valley Music and Arts Festival, Dubai Jazz Festival, The Hong Kong Sevens and The PGA Tour World Golf Championships-Mexico Championship.

Marriott Bonvoy will also usher in a new mobile experience. Members using either the SPG or The Ritz-Carlton Rewards apps are encouraged to download the current Marriott app now which will automatically update to become the Marriott Bonvoy app on February 13. The SPG and The Ritz-Carlton Rewards apps will be deactivated on that date.

what are the benefits associated with relationship marketing that Marriott will receive. Advantages of relationship marketing should be provided?