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 British 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 restaurants, 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 restaurants, 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.
Commenting on the findings, Tim Chapman, Chief Commercial Officer, Zonal, said: “It’s great to see that support for the hospitality industry is strong, with our research revealing that restaurants, pubs and bars command more loyalty than other areas of consumer spending. That said, 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.
“Customer data can be a valuable tool, enabling operators to analyse consumer trends, optimise offers and send bespoke marketing communications. However, ensuring guests experience a warm welcome, great service and value for money is equally important. Combined, these are powerful ways to increase repeat business, drive revenue and build loyalty.”
Karl Chessell, Director – Hospitality Operators and Food, EMEA, CGA by NIQ added:
“With many 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.”
