What is customer loyalty in hospitality

What exactly is customer loyalty?

Customer loyalty is all about commitment. It’s the measure of how likely guests are to consistently choose your brand over others. Loyal customers bring steady business, often share their positive experiences with others, and are more likely to pay a premium for quality service. Here’s why loyalty matters:

• Repeat business: Loyal customers are more likely to return, providing reliable revenue.

• Positive advocacy: They become advocates, sharing recommendations that strengthen your reputation.

• Increased spend: Studies show loyal customers are often willing to pay extra for trusted quality and service. Research indicates it can be at least five times more cost-effective to retain existing customers than to attract new ones. For hospitality businesses, this makes loyalty a crucial strategy for growth and stability.

Why customer loyalty is your secret weapon

With guest expectations on the rise and so many options available, building customer loyalty can make all the difference to your success. Loyal customers don’t just return; they become vocal advocates for your brand, sharing their experiences and encouraging others to visit. 

If you’re not convinced about the value of a good loyalty program, it’s worth knowing that 75% of consumers prefer companies that reward their loyalty. Whatsmore, members of loyalty programs spend an average of 12-18% more each year - so it’s well worth getting customers signed up. But it’s not just about how many names and email addresses you’ve captured in your loyalty program.

If you want to outdo your competitors and win the battle for customer attention, authentic customer loyalty could be your secret weapon. Creating lasting loyalty is more than just good service; it’s about consistent, personalised experiences that guests remember and trust. When you take the time to understand what your customers want from you, and how to go the extra mile to deliver an outstanding experience every single time, you’ll be able to build a loyal customer base of guests who keep coming back, time after time.

Understanding customer loyalty in hospitality 

Building customer loyalty starts with trust. Guests want to feel confident that every visit to your venue will be a special experience. Consistent quality, personalised attention, and outstanding service are all essential in meeting these expectations, but what specifically should you be focusing on?

Meeting customer expectations

With digital technology advancing rapidly, guests are more informed than ever, and they expect a consistently high standard of service. 

They’re looking for personalised experiences, seamless interactions, and consistent quality. But what does a "personalised experience" really mean?

In hospitality, personalisation means reaching each guest with communications tailored specifically to them. This could involve sending emails with special offers based on their past visits, acknowledging important dates like birthdays with exclusive promotions, or providing recommendations aligned with their preferences. Using loyalty and rewards CRM software for hospitality, your team can personalise interactions automatically, ensuring that each guest feels recognised and valued, even before they step through your door. 

Guests want reliable, meaningful experiences, and when you deliver, they have a strong reason to keep coming back.

Challenges in the industry

The hospitality industry faces unique challenges that can impact customer loyalty, and understanding these can help you address potential issues before they affect guest experiences.

• Staff turnover: High staff turnover rates can make it difficult to deliver that all important consistent quality of service. Onboarding and training can cause a dip in service levels, and being short staffed puts extra pressure on the existing team. Also, when your guests see frequent changes in staff, they may feel less connected to your brand - familiarity is often an important aspect of building customer loyalty. By addressing turnover with strong training and employee retention strategies, you’ll be better able to ensure a familiar, high-quality experience for returning guests.

• Varying levels of service quality: Maintaining consistent service across multiple locations or shifts can be challenging. Variations in service quality may cause guests to feel uncertain about what to expect, impacting their likelihood of returning. Setting clear service standards and using a good hospitality training software solution can help create a more consistent experience across your brand.

• Pressure to adapt to new trends: The hospitality landscape is always shifting, with new technologies and changing guest preferences influencing how businesses operate. Staying up-to-date keeps guests engaged, but jumping on trends too quickly without a clear strategy can impact your brand’s identity. By focusing on trends that align with your brand values and guests’ needs, you create a steady, appealing experience that encourages guests to return.

By recognising these challenges and proactively managing them, you can build a stable, welcoming environment that fosters loyalty and keeps guests returning.

6 winning strategies for building customer loyalty 

Building a loyal customer base takes time, and success often hinges on the right approach. For many successful hospitality businesses, technology plays a key role in creating and strengthening valuable long term relationships with their customers. From CRM systems that allow for personalised guest experiences to loyalty programs that keep customers engaged, leveraging the right tools can make all the difference.

Below, we explore several effective strategies that, combined with technology, can help you build meaningful relationships with guests, encouraging first-time visitors to become loyal regulars. 

1. Personalise, personalise, personalise

In hospitality, personalised service extends beyond in-person interactions. With Hospitality CRM software, you can send targeted communications, like special offers based on a guest’s previous visits or birthday greetings with exclusive deals. These thoughtful touches show guests that your venue recognises them individually, creating a deeper connection.

2. Offer rewards that resonate          

To motivate customers to return, you need to be able to reward them. Make sure you have a loyalty program in place that can deliver this. Whether it’s points for purchases, exclusive discounts, or special offers, rewarding loyal guests encourages them to choose your venue over competitors. 

Integrating loyalty at different touch points - like Guest Wi-Fi and your CRM - helps you gather insights that let you tailor promotions to what makes each guest tick. When guests connect to your Wi-Fi, you’re able to gather details like their contact info, how often they visit, and even their preferences. With the right integration, this information can flow straight into your CRM, to help you build a fuller picture of each guest.

With these insights, you can make your communications feel personal and relevant. For example, if someone usually visits on weekends, why not send them a special offer for their next Saturday visit? Or, if you spot a birthday coming up, a quick message with a birthday treat can make them feel appreciated. Tailoring offers and messages this way lets you create a more personalised experience that guests genuinely enjoy - and keeps them coming back.

3. Make every experience exceptional

Your guests want to know that they can rely on you to deliver a great experience every time they visit. Uncertainty can send them off in search of a new favourite place to eat, so maintaining high standards across the food, atmosphere, cleanliness, and service you offer is essential. 

Consistency reassures guests that they’ll have a great experience every time they visit you, helping to build lasting loyalty.

4. Ask for feedback, and act on it      

Gathering feedback regularly shows guests that their opinions truly matter. Inviting them to share their thoughts at every stage helps you understand what they love and where you can improve. This proactive approach not only keeps you in tune with what’s working but also makes your guests feel valued and heard, strengthening their connection to your brand and fostering loyalty.             

5. Create unforgettable experiences

Hosting events, themed nights, or unique dining experiences can set your venue apart and create memorable moments for guests. These experiences can create an emotional connection with your customers, which is often a major driver for return visits.

6. Make things easier with technology

Managing loyalty programs, understanding guest preferences, and gathering feedback can be simplified with the right hospitality CRM tools. With data-driven insights, your team can deliver tailored experiences that resonate with guests and keep them coming back.

The power of CRM in boosting loyalty

In this article, we’ve looked at the key things to consider when you’re looking for a new CRM, and how the right CRM system can enhance your restaurant’s brand and marketing needs, as well as improving customer retention and efficiency. 

If you’re managing a single-site business or are just starting out, a basic CRM might be the right fit for now. But if you’re managing a larger or multi-site operation, Access Hospitality has options designed specifically for restaurants.

Access Acteol CRM software is fully customisable and developed specifically for restaurant businesses. It can be scaled to suit your business needs to give you even greater functionality,  but to make things easier still, we developed Acteol SE for restaurants with fewer than 15 sites. For businesses with 16 sites or more, Acteol Enterprise is a solution designed to offer estate-wide, fully integrated systems where wider functionality is needed. 

If you're ready to move forward, you can download our hospitality CRM brochure or speak with our CRM and marketing automation team to discuss how a CRM system can benefit your restaurant and get pricing information for the Acteol solutions.