Recent research from Zonal’s Go Technology report, in partnership with CGA by NIQ, highlights the precarious nature of customer loyalty within the hospitality sector. The study, which surveyed over 5,000 British adults, reveals that about one third (31%) of consumers frequenting restaurants, pubs, and bars are open to switching to competitors, showcasing the challenge businesses face in retaining their clientele.
Interestingly, the data points to a generational divide in loyalty; older consumers (aged 65+) exhibit stronger allegiance to their favourite spots, with only 16% indicating a likelihood to switch, compared to 41% of younger adults aged 25-44. This suggests that while the younger demographic may seek variety or trendier options, the older groups value consistency and familiarity more.
The survey also highlighted key preferences on the type of information guests desire from hospitality venues:
- Deals and rewards are most sought after, with 54% expressing interest.
- New menu items and price changes are also significant, with 44% and 39% respectively.
- Information on events and operational changes like opening hours were less critical but still valued by a substantial number of patrons.
Tim Chapman, chief commercial officer at Zonal, emphasises the strong base of support for the hospitality industry but cautions that operators must actively engage in nurturing loyalty through both in-venue and digital strategies. He advocates for the use of customer data to tailor marketing communications and optimise offerings, ensuring that guests not only enjoy a warm welcome and great service but also perceive real value for their money.
Marcus Jones of Capcon comments: “Understanding and adapting to consumer behaviour is more crucial than ever. Our role is to assist our clients in leveraging technology and data to build a robust relationship with their customers, transforming one-time guests into loyal patrons.”
About Capcon: Capcon specialises in strengthening operational efficiency and customer loyalty for the hospitality sector. Our robust stock control systems and inventory management solutions are designed to ensure seamless operations, crucial for maintaining quality and profitability. By accurately managing costs and minimising waste, these systems help sustain high standards and strong gross profits.
We also offer comprehensive employee training programs to elevate staff performance and enhance customer service, creating memorable experiences for patrons. Effective pre-employment screening processes further secure the recruitment of high-quality staff, protecting your establishment’s reputation.
Furthermore, Capcon’s strategic support extends to pricing strategies and menu structuring, equipped with real-time reporting to enable informed decision-making that boosts productivity and optimises margins.
Contact Capcon to discover how we can strengthen your operations and customer loyalty, ensuring a successful and profitable service environment.
For detailed insights from the Go Technology September 2024 report, visit CGA Strategy.
