What makes people loyal to a business or a brand?
This week I was reflecting how the latest report from data software company Emarsys – ’Customer Loyalty Index 2022: A Review of Australia Consumer Attributes Impacting Loyalty to Retailers, Brands, and Stores’ – can be applied to hospitality and foodservice.
In a study of 2,044 Australians, the researchers found that as inflation and rising costs are hitting consumers, 84% say they are more loyal to retailers that offer them discounts, incentives and rewards, provide great customer service, and market to them in a personalised way that accounts for their unique needs.
And almost half (49%), have switched from a brand they were loyal to, due to a bad experience.
I believe these attitudes would also transfer to hospitality and even B2B in the foodservice sector.
During the festive season upon us, it is even more important to deliver a memorable experience to our guests. And this isn’t about service procedures or learning a script. It’s a whole mindset, about being present in the moment and focusing on what the person in front of you needs.
It’s about making them feel that their comfort and wellbeing is your priority. It’s about being hospitable.
A person who feels welcomed, pampered and well looked after will come back again and again. Many studies have shown that great service is even more important to diners than great food.
On the supplier side, it’s about empathy for your customers – they are heading into their busiest season and they need to know you have their back. Don’t make the common mistake of over-promising and under-delivering!
As prices rise and rise, suppliers will find that consistent service excellence is crucial in keeping customers. Targeted rewards and incentives can play an important role, but most of all it’s honest communication that counts.
The Emarsys report also reveals that individual attributes such as income, age, geography and ethical values can affect customer loyalty differently.
For example, 43% of people aged 25-34 agreed with the statement “I have switched from a brand I was loyal to because of their sustainability practices”, compared to 16% of people aged 55+.
So, if your customer demographic is typically under 35, think about ways you can communicate your sustainability measures and reassure them that you are an ethical and environmentally aware business. We are in a service industry, and with the cost of goods, fuel and energy continuing to rise, we need to get back to the basics of delivering an exceptional customer experience to keep our customers coming back for more