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In the bustling world of hospitality, where the clinking of glasses and the aroma of fresh cuisine fill the air, loyalty extends far beyond a simple transaction or a fleeting visit.
Loyalty, in its essence, is the emotional bond that ties customers to their favourite restaurants and cafes, compelling them to return time and again, not just for the food but for the experience. Every hospitality business strives to achieve this emotional connection, yet the path to loyalty is often misunderstood and mismanaged.
Loyalty in the hospitality industry is multifaceted. It’s not just about repeat business; it's about creating a sense of belonging among customers. A loyal customer chooses your establishment not because it’s convenient but because they share an emotional connection with your brand, food, and the memories they create within your walls. This relationship is built on consistent positive experiences, trust in quality, and feeling valued and recognized.
Traditionally, loyalty has been measured through repeat visits or the amount a customer spends. While these metrics offer surface-level insights, they fail to capture the depth of a customer’s emotional attachment to a brand.
True loyalty should be measured through engagement: how often customers interact with your brand on social media, their participation in feedback surveys, and their willingness to recommend your establishment to friends and family. These behaviours indicate a customer's true sentiment and attachment to your brand.
Many restaurants and cafes fall into the trap of equating loyalty with rewards programs that focus solely on transactions that occur at the moment. Essentially, they offer a discount on a current purchase - the idea being that the more you repeat that purchase, the more you step toward getting something in return - think about the traditional points on paper coffee cards.
“All this does is create a discount mindset and relate the consumer to a specific item on the menu - say a cup of coffee,” said Andy Lark, Chief Customer Officer, Liven. “What hospitality brands must do to differentiate and grow is incentivise every purchase with a reward that enables and excites the customer to return and explore the menu. And the more they do that, the more you benefit from higher visit frequency and higher order value - and more data. Customers become super fans and members of your community, and not discount shoppers.”
To foster true loyalty, hospitality businesses need to reimagine their approach to loyalty programs, focusing on personalisation and emotional engagement. Rather than discounting the current transaction, they must shift to rewarding with their currency that incentivises the customer to spend and do more.
Here’s a few thoughts to get you going:
Loyalty in hospitality should be nurtured through emotional connections, personalised experiences, and community building rather than relying on transaction-based, in-the-moment reward programs that don’t relate to your brand's currency. By redefining loyalty programs to focus on engagement and personal connections, restaurants and cafes can create a devoted customer base that supports their business with their wallets and their hearts.
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