Loyalty schemes offered by restaurants and quick service outlets are valued the most by Gen Z and millennials, according to RSM UK’s latest Consumer Outlook.
RSM UK’s survey of 2,000 consumers found 58% of Gen Z respondents and 48% of millennials are more likely to go to a restaurant with a loyalty scheme, compared to 42% across all generations. In addition, 55% of Gen Z consumers and 52% of millennials are more likely to choose a quick service outlet such as Pret and McDonalds if they offer a loyalty scheme, compared to 40% across all generations.
Interestingly, those on higher incomes (over £80,000) were most likely to frequent hospitality venues with loyalty schemes, at 66% for restaurants and 56% for quick service outlets. Whereas this falls to 38% for those on incomes below £20,000. The interest in loyalty programmes is also less appealing in pubs and bars, with 27% and 24% of consumers, respectively, more likely to buy from these outlets if they offer such schemes.
Saxon Moseley, partner and head of leisure and hospitality at RSM UK, comments: “Loyalty schemes have fast become a staple in the hospitality industry, focusing on building a mutually beneficial relationship between operators and customers. Rather than simply offering a one-off discount which is often transactional and risks eroding margins, loyalty schemes encourage repeat spend and enhance the overall customer experience.”
The rewards that consumers were most interested in receiving at restaurants and eating/drinking outlets were price reductions (50%), bonus points that amount to a free drink or meal (17%) and bonus points to spend (15%).
Saxon Moseley added: “While our findings suggest the success of loyalty schemes differs depending on the target demographic and type of hospitality venue, it’s clear they have a considerable influence over a significant portion of the market. As operators continue to fight to catch the eye of customers, they may benefit from using these schemes to cultivate customer loyalty, raise profile and even potentially increase their market share. They’ll also get access to sought after customer data which they can use to tailor their offerings for maximum appeal.”
