Loyalty in hospitality: Five CGA by NIQ insights

Loyalty is the foundation of growth in hospitality, but it’s not easy to generate. In The New Loyalty Landscape, part of the GO Technology series of reports, CGA and Zonal explore what consumers need to stay loyal, the impact of the cost of living crisis and important differences by age.
Download the latest Go Technology Report

Here are five of the top insights: 


1 It’s the fundamentals that drive loyalty…

Good value for money is the top source of repeat visits, and it’s considered a key factor in loyalty by nearly half (47%) of consumers. Some drivers relate to individual preferences, like favourite food or drink (30%) or visits by friends and family (28%). But many others relate to basic elements of hospitality, like top quality service (28%) and consistency of experience (27%). It’s clear that venues can only achieve loyalty if they deliver the fundamentals of great hospitality, day in and day out.



2 … And poor experiences that lose it

Similarly, it’s poor experiences and value that lose loyalty. Half (49%) of consumers say they feel less loyal to a brand if they have a few bad experiences, and more than a third (37%) may do so if a venue raises its prices. Nearly a quarter (24%) say a single bad experience is enough to reduce their loyalty.



3 Loyalty varies by age

The GO Technology research from CGA and Zonal reveals important differences in approaches to loyalty by age. For example, millennials and other young adults are more loyal than sometimes imagined, considering themselves loyal to an average of 2.3 eating and drinking brands, compared to 1.8 among those aged 55+. Young people’s loyalty is often driven by the influence of friends and family, whereas value and reliability are much more significant factors for older adults.



4 Value doesn’t have to mean cheap

Rising costs have made consumers more demanding about their pub, bar and restaurant visits. Half (52%) say they have higher expectations of the brands they are loyal to because of the cost-of-living crisis, and 16% have reduced their loyalty. But while value is closely tied to loyalty, it doesn’t have to mean cheap—just a sense that consumers are getting experiences that are worth whatever money they spend.



5 Loyalty schemes can help

Loyalty schemes aren’t a major reason for consumers to return to venues, but they can contribute to overall feelings of satisfaction and value. Nearly half (47%) say they have joined more schemes to save money, and 58% agree they generally represent good value for money. Young adults are particularly well disposed to them.



To read The New Loyalty Landscape report in full for free, click here. You can also access previous GO Technology reports covering a wide range of issues around consumers’ engagement with tech in pubs, bars and restaurants. For more information about the reports, please contact info@zonal.co.uk.



GO Technology is based on an exclusive survey of 5,000 nationally representative British consumers. To discuss the research and ways CGA by NIQ helps businesses drive loyalty, email client director Andy Dean at andy.dean@nielseniq.com.    

Recent posts:

Share post


Subscribe to our newsletter

Access the latest On Premise news and reports by signing up below.