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.
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.
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.
Personalization: Connected and Immediate
For loyalty programs to remain relevant, restaurants need to aim for a level of personalization that feels niche, not mass.
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.
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 Lazy Loyal
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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
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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