Leveraging Customer Feedback to Boost Performance: That’s Hotels.com’s Strategy. Why and How Setting Up a “Real Estate Club” Could Be a Good Idea

“Hello, We are writing to inform you that we have created a brand-new online research community called Hotels Club. (…)”

That is how the letter addressed by Hotels.com to its subscribers begins, inviting them to join a community where their feedback and comments about the hotel booking service are solicited. In return for taking part in surveys, polls, and various activities, Hotels.com offers participants compensation (up to €25 per month), prize draws, early access to new features, and, above all, the opportunity to shape the future of its services.

The “Hotels Club” platform by Hotels.com, managed by the independent research agency Incling, is built around two key principles:

1. Engaging customers:?Hotels.com encourages its users to share their feedback (both positive and negative), suggestions for improvement, and even ideas on future services.
2. Rewarding their involvement:?for each survey or task completed, members receive monetary compensation and take part in regular prize draws.

On the?customer side, this strategy creates a new form of dialogue: rather than simply having updates imposed on them, they actively participate in co-creating their future booking tools (search features, partnerships, payment solutions, etc.).

On the?Hotels.com side, the main advantages of this strategy are as follows:

• A better match between supply and demand:?gathering feedback directly from users reduces the risk of implementing unsuitable features.
• Greater customer loyalty:?customers who feel valued as co-creators are more inclined to reuse the platform, recommend it, and remain engaged over the long term.
• Reduced research costs:?using an online research community outsources part of the surveys and testing, reducing the need for more expensive market research projects.

This example perfectly illustrates a marketing approach centered on the “voice of the customer.” Rather than viewing the customer as a passive recipient, the customer is seen as a collaborator—a strategic resource for guiding service improvements.

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What Role Can the Customer Play in the Business Model?

Within a company, the customer has long been regarded more as a buyer than as a resource. Resource-based theory (RBV) has indeed focused on internal assets, partly neglecting those outside the boundaries of the firm (including customers). Yet in marketing, the concept of customer value has led to seeing the customer as a genuine asset. Research has shown that the customer can contribute in multiple ways (see diagram):

Plé et al. (2010) refer to a?“Customer-Integrated Business Model” (CIBM)?to describe configurations in which the “customer” resource is no longer viewed as a mere consumer but rather as a co-producer and co-designer of the service. In a CIBM, the customer’s participation is sometimes essential to the creation or evolution of the offering. Organizations can thus reduce costs, increase revenues, differentiate themselves, and lower risk by integrating the consumer into their processes.

For Hotels.com, the key lies in?intellectual contributions?(suggestions, feedback on usage) and?time contributions?(time spent answering surveys or testing new features). These forms of participation not only improve the value proposition but also strengthen the emotional bond between the platform and its members.

Incorporating the customer into the business model represents a major opportunity for businesses (see diagram below).

A Replicable Model for Real Estate Agents

In the real estate sector, the process is complex (property tours, negotiations, contracts, etc.), and the relationship of trust is a crucial factor. How could a “Real Estate Club,” inspired by Hotels Club, be applied?

1.???? First step: focus on uniting a community by inviting existing and potential clients, whether current or former, to join an online platform (dedicated website or private group) where they can exchange their needs, ideas, and feedback. It is also helpful to provide different types of content to spark their interest and encourage their involvement.

2.???? Second step: set up surveys and discussions, particularly via questionnaires that help better understand clients’ satisfaction levels and spot any potential pain points. It is also useful to set up forums or host chat sessions, where topics such as negotiation, financing, or renovations can be addressed. Agents can then quickly identify recurring questions and offer a public response.

3.???? Third step: consider a reward system for participation. This might include offering vouchers for home improvements or access to partner services (moving, decorating, etc.). Other options, like prize draws, could, for instance, give winners a consultation with a real estate tax expert or a free home-staging service.

4.???? Finally, the fourth step involves regularly communicating about innovations and highlighting everyone’s contributions. The goal is to keep the community informed about the improvements or new features implemented thanks to their feedback, whether it’s a virtual tour or the option to schedule an appointment online. Showcasing the people who have been most active—through testimonials or interviews—fosters a sense of belonging and motivates other members to get involved.

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Conclusion

In the real estate sector, launching initiatives akin to those of Hotels.com could be promising. Clients and prospects have a place to express themselves and contribute to the continuous improvement of the offering and the sales experience, helping build a strong reputation through their testimonials and active participation. This creates a virtuous circle in which customer satisfaction feeds into new projects, cuts risks, and increases process efficiency in the long run.

That said, such an approach calls for careful management of processes and expectations, as it carries several challenges. The first involves the diversity of client profiles—since not everyone is necessarily ready or able to participate effectively. To succeed, one must define?clear objectives, precisely understand?how customers’ participation contributes to the value proposition, adapt?organizational processes?so that integration runs smoothly and systematically, and?showcase the value?for customers by emphasizing the economic, experiential, or emotional benefits they gain.

With advancements in artificial intelligence, the role of the customer in business models is set to grow even further. Natural language processing (NLP) and generative AI (such as ChatGPT) indeed make it possible to analyze large volumes of feedback and categorize them automatically, quickly pinpointing trends, priorities, and areas for improvement. Based on this mass of data, AI can also suggest novel ideas and scenarios—whether they involve new features, tailored services, or projects that more effectively meet clients’ expectations. By processing and synthesizing a wide array of feedback more rapidly, AI expands a company’s ability to co-create and innovate, turning the “customer” resource into a true active partner. In this way, AI serves as a catalyst for swiftly surfacing high-value solutions.

1 Bendapudi, N., & Leone, R. P. (2003). Psychological implications of customer participation in co-production.?Journal of marketing,?67(1), 14-28.

2 Plé, L., & Chumpitaz Cáceres, R. (2010). Not always co‐creation: introducing interactional co‐destruction of value in service‐dominant logic.?Journal of services Marketing,?24(6), 430-437.

3 Wernerfelt, B. (1984).?A Resource-based View of the Firm. Strategic Management Journal, 5(2), 171-180.