
How can smaller hospitality businesses make loyalty work?
A mere 10% of consumers say they don’t find loyalty schemes appealing, according to our research, so, for the 90% that do – what kind of schemes are they interested in and what do they want from them?
Member only prices (49%), collecting points for the purchase (39%), and cashback (37%) are the top three rewards which appeal to consumers looking to hospitality loyalty schemes. However, with an increasing number of schemes on the market, many with a broadly similar offer, how can your scheme stand out in a crowded market?
What types of loyalty schemes to consumers find most appealing?
% of consumers who selected each scheme as a top-three choice
This is an issue the retail industry has already been grappling with. A recent Mintel report showed, for example, that 45% of shoppers think that all loyalty and reward schemes offer the same benefits. Innovation and a bit of creative thinking, then, are vital in order to stand out.
The Mintel research suggests that personalisation will be a key differentiator. We know that personalisation is something hospitality guests are looking for as well – with our own research showing that 80% of consumers are interested in some form of personalisation from the restaurants, pubs and bars that they visit.
“By making schemes truly personal, they can move from being simply value-driven to a true shopping companion,” Mintel says – and we know pub, restaurant and bar goers want more personalised experiences and offers.
In fact our previous GO Technology research indicates around a fifth now expect to receive tailored recommendations (20%), or to be presented with personalised menus that incorporate their favourite dishes and drinks (19%).
What does this all mean for hospitality?
For hospitality businesses looking to nurture loyalty amongst their customer base, whether it’s to encourage more repeat visits, develop advocacy, or increase spend-per-head, it’s important to ensure your offering delivers what guests want – and that you’re meeting these expectations consistently.
Of the most popular types of loyalty schemes identified above, the top rated answers are all value-driven, indicating a desire for consumers to make their money go further. This is further evident from previous research in 2024, where we asked guests what factors would most likely motivate them to return after visiting a pub, bar or restaurant. Here, the top answers were the quality of food (53%), good service (50%), and good value for money (48%).
It’s important to note that ‘good value for money’ doesn’t necessarily equal ‘cheaper’ – whilst guests always appreciate a good deal, the fundamentals of hospitality, good service and good quality food & drink, are what keep truly build brand loyalty and keep them coming back for more.