Consistency Is the Key to Customer Loyalty.
According to a recent survey involving over 5,000 UK adults, nearly half of consumers claim that having just a couple of bad experiences at a hospitality venue can make them less loyal to a brand. The study, part of Zonal's latest GO Technology report in partnership with CGA by NIQ, emphasises that delivering consistently excellent experiences is more vital in building loyalty than discounts or deals. In fact, 49% of respondents cited a few bad experiences as the top reason for reduced loyalty.
This research underscores the importance of not only getting things right the first time but doing so repeatedly. Moreover, over half of consumers (52%) now have higher expectations of the brands they are loyal to due to the current cost-of-living crisis, with this figure rising to 64% among 18-to-24-year-olds.
The primary factors that contribute to reduced loyalty, according to the survey, include:
Having a few bad experiences (49%)
Price increases (37%)
One bad experience (24%)
Feeling like you're not getting value for money during the cost-of-living crisis (24%)
Brand involvement in controversy (23%)
While loyalty schemes aren't the primary determinants of customer return rates, a substantial 58% of consumers find them to offer good value for money. Additionally, almost half (47%) of consumers have joined a loyalty scheme to save money, particularly in light of the cost-of-living crisis.