Customer loyalty is fragile, and hospitality is no exception, with new figures from Zonal’s latest GO Technology report in partnership with CGA by NIQ, revealing that 31% of restaurant, pub and bar goers are very or somewhat likely to switch to a competitor.
The survey of more than 5,000 adults, highlights customers’ likelihood to switch brands and what it takes to earn their loyalty and to keep them coming back.
The latest figures also found that while pubs and bars might inspire a slightly stronger sense of loyalty than areas of consumer spending like energy or utilities (35% of consumers are likely to switch suppliers), the likelihood of switching is on a par with users of supermarkets (31%), gyms (32%), and phone networks (32%).
When looking at how switching varies across different age-groups, the findings revealed that loyalty is stronger amongst older consumers, with only 16% of those aged 65+ very or somewhat likely to switch to a competitor, compared to 41% of 25–44-year-olds.
Furthermore, parents are significantly more loyal to pubs and bars than average, with only 26% of parents likely to switch to a competitor, compared with 37% of non-parents.
To effectively generate loyalty and to prevent customers slipping away to rival venues, understanding what guests want and delivering on the fundamentals of hospitality both in and out of-venue is vital. When asked what information guests would like to receive from venues the following came out top:
- Deals and rewards (54%)
- New menu items (44%)
- Price changes (39%)
- Events in the venue (34%)
- Changes to opening and closing times (25%)
Unsurprisingly, financial savings are also a priority for consumers when it comes to joining a loyalty scheme, with member only prices (49%), collecting points for the purchase (39%) and cashback (37%) the top three loyalty schemes which appeal to consumers.
“Operators can’t afford to rest on their laurels – in a cash-strapped market, customer loyalty is precarious. Investing in ways to nurture loyalty both in and out-of-venue, is key,” says Tim Chapman, Chief Commercial Officer, Zonal.
“For example, loyalty programmes that allow operators to create, run and measure personalised loyalty schemes can help ensure your most loyal customers are recognised and rewarded.
“What’s more, by using loyalty and spend data you can analyse customer trends, optimise your programmes and send targeted marketing communications, all of which are powerful ways to increase repeat business, drive revenue and prevent guests from slipping away to rival venues.”
Karl Chessell, Director – Hospitality Operators and Food, EMEA, CGA by NIQ, says with consumers’ spending still under significant pressure, it’s more important than ever to keep guests coming back to venues.
“But loyalty is more fragile than ever too and securing the allegiance of younger adults – who are not just the guests of today but spenders for many years to come – is particularly difficult.
“Finding ways to keep people engaged between visits and reward them for their spend when they come through the doors, requires an expert understanding of what different demographics want, and how, when and where they want to get it.
Ultimately, however, loyalty comes down to venues’ delivery. Poor experiences will soon see guests look elsewhere – but consistently great ones will keep coming back again and again.”
For more from CGA by NIQ, click here.
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