The Value of Stealth Loyalty in Hospitality

The value of Stealth Loyalty

We have seen a huge shift in the loyalty landscape over recent years, where the gap between cheap and cheerful ‘Buy 10 get 1 free’ paper stamp cards and costly custom-built apps have been closed.

There is now a digital loyalty solution for all budgets and requirements and a lot of pressure from both customers and internal stakeholders to ensure your business has one. One thing is for certain; loyalty is only going to become a more prominent part of our businesses in the future.

Posted 30/09/2024

Where To Start?

Whilst you may or may not have a digital solution in place currently, it is important to remember that only a relatively small percentage of your marketable database will adopt this scheme and you will still have a large, engaged customer base that should not be overlooked.

Incorporating ‘stealth loyalty’ into your CRM strategy and maximising on key, rich data sources such as Wi-Fi is a great way to encourage incremental visits, treat only the guests you wish to treat, AB test offers and switch rewards on and off as the business needs without complaint.

Visit behaviour is the ideal place to start. What is your data telling you? To begin with, identify the following:

What is my customers’ average visit frequency?
Which days of the week need focus?
Which dayparts need focus?
What can I afford to give away?

Visit Frequency

We see the average visit frequency of customers for the majority of casual dining brands at under 1.5 visits per year so any activity that will drive even one incremental visit for a proportion of your database, will have a significant impact on your bottom line.

For example, set up an automated message in your CRM system that fires 19 days after their 2nd visit to say ‘Here’s a free drink on us, just because.’ The random and lengthy delay ensures that the customer does not realise it is automated and based on their recent visit, improving the chance of giving them that warm and fuzzy feeling about your brand.

Day of Week & Daypart Targeting

Segment your data to identify your customers who visit only in your quieter times and reward them to visit again in these windows with a more valuable offer than someone would receive if they visited at the weekend for example.

No matter what you offer, some customers will not be able to visit you during weekday lunchtimes due to other commitments so don’t flog a dead horse!

How To Treat Loyalty

Stealth loyalty enables you to make sure your giveaways work for you. Any rewards or treats that you issue will be done on a 'surprise and delight' basis so you are not fixed to a previously communicated set of rules that we all know your customers will be very vocal about if you make any changes!

For example, give away a new dish on your menu to gain feedback and encourage them to find a new favourite or partner with a supplier on a contra deal basis to get free stock for the campaign in exchange for additional in-store promotion.

Whether you consider yourself a discount brand or not, everyone likes to be made to feel special and free items and added value are a great way to do this.