Ignite and KAM Collaborate to Uncover Customer Preferences for Loyalty Programmes
Ignite, a leading hospitality marketing agency, and KAM, a renowned consumer insights agency, have joined forces for an in-depth research study to uncover what customers want from premium casual dining restaurants when it comes to loyalty schemes.
As customer loyalty becomes increasingly crucial in today’s competitive landscape, companies are seeking innovative strategies and valuable insight to attract and retain customers. Recognising the significance of understanding consumer preferences in this context, Ignite partnered with KAM to carry out a research project that delves into the preferences, expectations, and motivations of different consumer groups regarding loyalty programmes.
The survey was distributed nationally and represented a sample of 300 UK adults who have spent £35-£40 per head in a restaurant in the last 3 months. It uncovered valuable insights into the demographic preferences towards loyalty programme features, loyalty devices (app vs card), and desired rewards.
Key findings from the survey included:
- 18-34 years are surprisingly less driven by offers than the other age groups and want to be made to feel special for being a member.
- 35-54 year olds are much more offer led with 48% of them signing up to schemes to get special offers and 73% of them saying they like being rewarded for every visit.
- Respondents aged 55+ care about simplicity with 64% of them saying the main thing they like about other loyalty schemes is that they are easy to use.
- When it came to what kind of loyalty card / devices customers preferred, there was a real variance in preference by age too.
- 30% of respondents aged 55+ said a physical card would make them use the scheme more, whilst 30% of 18-54 year olds said an app that is easy to use would make them use the scheme more.
The impact of recent supermarket loyalty scheme changes (e.g. Clubcard Prices) also start to creep through into responses, with 52% of respondents saying they would like to get discounts off certain menu items. Other scheme perks that proved popular were surprise rewards on arrival, priority booking and member only offers.
Susie Clark, Head of CRM at Ignite said “We are excited to collaborate with KAM on this research initiative. Armed with this knowledge, businesses can strategically design and implement loyalty initiatives that resonate with their customers, ultimately leading to increased customer satisfaction and loyalty. We’ve already started using this invaluable insight to inform loyalty strategies we’re working on for our clients and I really believe this will help brands unlock new opportunities for growth and establish a strong competitive advantage.”
Clark also added “My favourite stat from this research was that 90% of respondents said they would be happy to share personal information, dietary requirements or preferences if it meant they’d get more personalised offers and perks from a loyalty scheme. Delivering personalisation is crucial for building long-lasting relationships with customers and it’s great to know that capturing this kind of data about customers won’t be a barrier for brands”.
Katie Jenkins, Marketing Director at KAM said, “In the current climate particularly, driving loyalty is absolutely critical for hospitality brands. Loyalty schemes are evolving fast, and this research confirms that a simple discount isn’t enough to keep most customers engaged with your brand and coming back for more. Premium casual dining brands in particular need to actively and authentically engage with their customers and reward them in innovative ways.”
“For me the most important thing that the research highlighted was the real need to keep loyalty schemes as accessible and frictionless as possible. They should place absolutely no burden on the customer. The correct loyalty strategy can truly unlock growth and understanding what really drives your customers, and potential customers, is obviously key”
Ignite and KAM are committed to delivering accurate and actionable insights that empower hospitality businesses to make informed decisions and stay ahead in the ever-evolving landscape of customer loyalty. The partnership showcases the expertise and synergies of both organisations in conducting research that uncovers invaluable customer insights.
For media inquiries or more information about the research study, please contact:
Susie Clark, Head of CRM at Ignite: