GroupOn infatuation is not the be-all and end-all of restaurant, hotel and leisure marketing. Whatever happened to good old-fashioned loyalty building?
As mobile street food becomes immobile, Brazilian becomes the new Mexican and a ‘no reservations’ queue-endorsing logic sweeps the restaurant scene, getting bums on seat just got that little bit harder. Is the allure of mass marketing through voucher sites and heavy mid-week discount deals really the best way to drive custom though? If so, what should you know before embarking on this form of marketing?
Aside from the opportunity to build awareness, the voucher phenomenon is not purely born from the restaurant industry, but from the demands of the consumer. It is well documented that over the past two years, we have bred a nation of discount hungry diners. It comes as a result of an industry’s eagerness to ride the recession and challenge the demise of eating out by incentivising out-of-home dining experiences.
According to Deloitte’s Taste the Nation survey of 3,000 consumers, nearly two-thirds use a voucher for quick service and casual dining, a further 67% of whom are aged 18-34 – this age group constitutes the largest proportion of voucher users.
From free glasses of bubbly to complimentary pudding plates, £5 lunches to free main courses, we are tearing our way through streams of offers to feel satisfied that we are getting a deal before choosing a restaurant.
A surge in trying to attract business during the continuous downturn in trade has meant that restaurants are clearly being led by the need to increase bookings while managing margins, but according to a recent report by Horizons, there is light at the end of the tunnel if we manage the process and delivery carefully.
Here at Custard, we agree that vouchers, promotions and discounting all have their place within marketing and in particular within the hospitality, tourism and leisure industries, but what we’d like to focus on is the original principle of loyalty building. Rather than attracting one-hit wonders, loyalty is about building a relationship with a customer that will secure good spending and repeat visits.
Conversations no longer involve the word ‘loyalty’. Customers are fickle and are jumping from one brand to another to get the best voucher advantage, but long-term loyalty is still the strongest method for securing profitable custom. Custard is therefore launching its very own ‘We Love Loyalty’ campaign for restaurants and hotels, in a bid to remind operators and customers that loyalty marketing has its place. It’s time to integrate a discounting approach with relationship building that lasts because of outstanding communication and conversation.
Despite the cut and thrust of numerous online channels providing endless opportunities to reach the masses, there is very little support for the industry in terms of managing the delivery of deals and maximising opportunities to create and secure loyalty.
Over the next 12 months, Custard will be working with the industry to develop informative guides to support restaurants and hotels and to provide tips and web link resources to get this method of marketing right for everyone. We will be updating our dedicated ‘We Love Loyalty’ web page regularly and we’ll be talking to some of the third party discounting platforms about the best ways to utilise their services, both short and long-term.
With restaurants being held to ransom by consumers unwilling to buy without a voucher or a discount deal, can we provide a strong alternative message to convince our once-loyal diners to return to the fold, or are consumers becoming too savvy for marketers?
