Loyalty programmes struggle to be relevant to consumers

Loyalty programmes struggle to be relevant to consumers

The hospitality industry is struggling to respond to consumer demands on loyalty programmes, according to new research from Oracle Hospitality.

Findings from its global study, ‘The Loyalty Divide – Operator and Consumer Perspectives, Restaurant 2018’, audited consumer perceptions and hospitality brand realities of loyalty programmes and influences. It reveals that operators have a critical disconnect with consumer expectations on loyalty engagement and incentives.

Key takeaways from ‘Restaurants 2018’ include:

  • Lack of relevance – 47% of restaurants believe their loyalty offers are mostly relevant, compared to 27% of guests who believe offers are mostly relevant and 27% who believe offers are rarely relevant.
  • Importance of social media – 51% are likely to research brands on social media before buying and 50% agree that it’s essential for restaurant brands today to have an active presence on social media.
  • Personalisation key – 68% say personalised offers based on their stated preferences is appealing and 67% say personalised offers based on purchase history is appealing.
  • Convenient devices – 83% note being able to order food and drink and pay the bill through a mobile app as appealing.

“Hospitality is an industry that celebrates personal interactions and a rich knowledge of guest behaviours,” says Mike Webster, senior vice president and general manager at Oracle Hospitality. “World class operators are now leveraging adaptive intelligence to deliver unique connections based on guest preferences as they move beyond simple loyalty and discount schemes. The result is greater engagement and social advocacy for new dining connections.”