Bunch of 80s loyalty cards

Loyalty won’t save your business this year

There is absolutely a place for loyalty, but do the following first.

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WHY?

  1. We analysed 33 brands across the hospitality sector and found nearly 80% of customers visited only 1x a year. You have not got a loyalty opportunity, you have a frequency opportunity and that is not solved by a loyalty scheme

Frequency first > then loyalty

  1. Most people don’t love your brand like you do, and with users allowing an average 7 loyalty apps to take up space on their phone, if they visit you less than several times a year, they won’t be giving up valuable real estate for yours
  2. Most apps are points based and don’t connect with the brand at all.

Think of the comms you will need to send. Anything going to your whole base must be a brand message, something you are willing your brand to be known for.

If you want your brand to be known for ‘dine with us and get 300 points’, then crack on.

THERE IS ABSOLUTELY A PLACE FOR LOYALTY, BUT DO THE FOLLOWING FIRST

  1. Dive into your data to understand your real frequency (it will be lower than your ops team think it is). If you have less than 80% of customers dining more than 6 times a year your scheme will struggle. Loyalty lives and dies in ops, and if few people are using it, ops will quickly lose interest and the scheme will lose momentum
  2. Define the architecture of the scheme, in terms of the actions you want people to take and how you will compel people to action.
  3. Think about how it integrates within your brand. What does it say about you, what do you want to be known for

CUSTOMER FIRST

Put your customer first. Any scheme thought up in the boardroom without a robust understanding of your customer, their behaviour and their wants & needs may as well head straight to the deleted folder.

DROP ME A LINE

If you’d like to talk frequency or loyalty, drop me a message today.

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Get in touch with Vic and the team to see what we can do for you.

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