Catering sector loyalty schemes need improving

The GI Insight marketing support services group found that the holiday and hotel sector was found to be only just below average, while restaurants are near the bottom of the scale. Restaurateurs have typically relied on managers and staff to establish and maintain customer relations. GI Insight said that these operators need to give way to a more methodical and data-based technique of understanding customer behaviours, re-activating lapsed customers, and obtaining more frequent visits. Further research suggested that marketers need to bear in mind that the disposable income and wealth of the 45 and over age bracket is considerably higher than younger age groups. Therefore, although the influence of loyalty schemes may be lower, the proportionate effect on revenues can often be higher when dealing with the older customer. Andy Wood, director of GI Insight, commented on these findings: "Clearly, different industries are likely to obtain more positive result from their loyalty initiatives than others. However, the findings of this report should not be taken lying down." He continued: "Whilst it provides a snapshot of the current status quo, and reveals clear sector differences, the imaginative professional can also take this report as a wake-up call to implement a fresh initiative to rise above their industry average and achieve true competitive differentiation through their loyalty programmes in 2009."