“The Loyalty Divide – Operator and Consumer Perspectives, Restaurant 2018” Reveals Operator Misconceptions of Consumer Loyalty Are Preventing Relevant Engagement - Publik Talk


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Wednesday, April 11, 2018

“The Loyalty Divide – Operator and Consumer Perspectives, Restaurant 2018” Reveals Operator Misconceptions of Consumer Loyalty Are Preventing Relevant Engagement

Press Release

“The Loyalty Divide – Operator and Consumer Perspectives, Restaurant 2018” Reveals Operator Misconceptions of Consumer Loyalty Are Preventing Relevant Engagement

Oracle Hospitality Report Highlights Four Guest Archetypes and the Opportunity to Capture the Trust of Emerging Generations through Deeper Interactions and Social Influencers

Oracle Industry Connect—New York, NY.—Apr 11, 2018

Oracle today announced the findings of a global study titled “The Loyalty Divide – Operator and Consumer Perspectives, Restaurant 2018” auditing consumer perceptions and hospitality brand realities of loyalty programs and influences. “The Loyalty Divide” reveals that restaurant operators have a critical disconnect with consumer expectations on loyalty engagement and incentives while failing to recognize the importance of social influencers.

“Hospitality is an industry that celebrates personal interactions and a rich knowledge of guest behaviors,” said Mike Webster, senior vice president and general manager, Oracle Hospitality. “World class operators are now leveraging adaptive intelligence to deliver unique connections based on guest preferences as they move beyond simple loyalty and discount schemes.  The result is greater engagement and social advocacy for new dining connections.”

Restaurant operators believe that guests would openly sign up to every loyalty program (50 percent) compare to the reality that consumers are much more selective and look for programs with real relevance: 49 percent only sign up to select relevant programs, 27 percent sign up to every loyalty program and 23 percent rarely join loyalty programs. The divide between restaurant offerings and consumer perception is more apparent when evaluating loyalty relevance with 47 percent of restaurant operators believing their offers are mostly relevant while only 27 percent of guests believe those offers are mostly relevant and another 27 percent say offers are rarely relevant. Restaurant operators view loyalty as a restaurant and customer only relationship with 63 percent of restaurants noting that they do not collaborate with influencers despite 40 percent of consumers agreeing that they are more likely to trust recommendations by YouTubers.

The study was conducted in February 2018 among 13,000 consumers and 500 businesses across retail, hotels and restaurants in 9 countries across North America, Europe, Latin America and Asia-Pacific: Australia, Brazil, China, France, Germany, India, Mexico, UK, and USA.

Navigating the New Loyalty Paradigm

The Future of Loyalty

Restaurant owners and operators have reason to be optimistic on the future of loyalty with millennials in particular having a higher propensity to loyalty programs and say their loyalty is growing.

  • 44 percent of millennials (25-34) and 44 percent of pre-millennials (18 to 24) note they are more loyal to restaurant brands than before
  • 30 percent of millennials plan to sign up to every loyalty program while baby boomers (55+) are more discerning with 48 percent of respondents noting they will only sign up to select, relevant programs

The Rise of Social Advocacy

A large segment of restaurant customers think it’s essential for restaurants to have a presence on social media and will trust influencers over and above traditional advertising.

  • 51 percent of guests are likely to research brands on social media before buying
  • 48 percent are likely to share photos of restaurant experiences on social media
  • 39 percent are likely to follow influencers that post about favorite restaurant brands
  • 50 percent agree that it is essential for restaurant brands today to have an active presence on social media
  • 40 percent agree that YouTube reviews are more trustworthy than branded advertising or communications
  • 38 percent of consumers agree that restaurants dined at and recommended by social media influencers are more trustworthy than those recommended by celebrities

Personalization: Connected and Immediate

For loyalty programs to remain relevant, restaurants need to aim for a level of personalization that feels niche, not mass.  

  • Connected

    • 68 percent of guests note personalized offers based on their stated preferences is appealing
    • 67 percent of guests note personalized offers based on purchase history is appealing
    • 62 percent note a more personal service from staff is appealing
  • Immediate

    • 76 percent of guests note immediate benefits are more appealing than accumulating points
    • 73 percent of guests note a single loyalty program that can be used at a range of brands is appealing
    • 72 percent of guests note an effortless loyalty program with automatic offers is appealing

The Role of Technology

For restaurants, technology plays a key role in driving connection and convenience and consumers are open to innovation that supports dining experiences as long as they’re not invasive.

  • 88 percent of guests note being able to accept or reject offers so that the restaurant/café loyalty program can learn what types of food/drink are most relevant as appealing
  • 88 percent of guests note redeeming loyalty points on new food recommendations (items never tried before) based on purchase history as appealing
  • 84 percent of guests note the ability to order food and view nutritional information on a mobile device or tablet at the restaurant/café as appealing
  • 83 percent of guests note being able to order food and drink and pay the bill through the mobile app as appealing

Four Loyalty Archetypes to Anticipate

Restaurants 2018: The Loyalty Divide uncovered four archetypes of guest behavior including: The Broadcaster who may flit between small restaurants or larger chains but shouts about their experiences good or bad; The Enthusiast, an engaged diner who may have a personal relationship with a location; The Lazy Loyal, typically unengaged and looking for a utilitarian meal; and, The Seeker who likes to shop around for the best value at an aspirational restaurant for a celebratory meal.

The Broadcaster

  • 52 percent of guests will recommend to others the restaurants they are most loyal to
  • 34 percent will rave about a great experience online
  • 15 percent of customers are driven to build a high status on social media and review sites
  • 41 percent would submit a product review through YouTube in exchange for an offer/reward

The Enthusiast

  • 38 percent of customers are most loyal to brands that they have a high opinion of
  • 24 percent will follow their favorite brands on social media
  • 71 percent say quality and 65 percent say an enjoyable dining experience are most important to them
  • 50 percent say it’s important that they can engage with new and exciting menu items from restaurants they are loyal to

The Lazy Loyal

  • 59 percent say convenient locations are most important to them
  • 36 percent will typically stick to the brands they like rather than shop around
  • 22 percent of consumers are unlikely to read reviews before going out to eat at a restaurant
  • 72 percent think an effortless loyalty program where points are automatically redeemed is appealing

The Seeker

  • 59 percent choose a restaurant because of a competitive price/promotion
  • 58 percent would exchange personal details in exchange for a personalized offer or promotion
  • 58 percent of customers would always ‘shop around’ for different restaurants to eat at
  • 23 percent would rarely sign up to restaurant loyalty programs

Contact Info
Matt Torres
About Oracle

The Oracle Cloud offers complete SaaS application suites for ERP, HCM and CX, plus best-in-class database Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) from data centers throughout the Americas, Europe and Asia. For more information about Oracle (NYSE:ORCL), please visit us at oracle.com

About Oracle Hospitality

Oracle Hospitality brings 35 years of experience in providing technology solutions to food and beverage operators and hoteliers. We provide hardware, software, and services that allow our customers to deliver exceptional guest experiences while maximizing profitability. Our solutions include integrated point-of-sale, loyalty, reporting and analytics, inventory and labor management, all delivered from the cloud to lower IT cost and maximize business agility.

For more information about Oracle Hospitality, please visit www.Oracle.com/Hospitality

Oracle Industry Connect

For more information about how Oracle is committed to empowering organizations through best-in-class, industry-specific business solutions, visit oracle.com/industries. To learn more about Oracle Industry Connect 2018, go to oracle.com/oracleindustryconnect.


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Published at: Wed Apr 11 12:00:00 UTC 2018

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