What is customer loyalty when it comes to pizza?

Author: CIMCOM

What does loyalty mean in the context of creating a strategy for restaurant chain, Pizza Express?

Kevin Tewis, Global Director of Client Services at Wonderful Creative Agency says, “Firstly, any loyalty strategy must embrace the move to mobile. Like almost all market sectors, mobile is vital for restaurants because its customers use mobile. Over 40% of restaurant bookings are made from mobiles and tablets. Secondly, when it comes to attracting new customers, two out of every five people booking a restaurant for the first time will make their booking from a mobile device, making it critical to develop a robust mobile marketing strategy.”

So restaurants must embrace the shift to mobile, but how do you generate loyalty for customers on the move? In his paper for Wonderful, Joshua Pattison considers the question of customer loyalty for Pizza Express.

Traditional loyalty schemes are loosing favour, with reward levels being downgraded for schemes like Tesco Clubcard. TABS Group research shows that people who sign up to loyalty cards visit more different outlets than those who aren’t in loyalty schemes. So are they loyal at all or simply deal-seekers. In addition, 54% of those that do sign-up think it takes too long to earn rewards.

Nectar is the largest loyalty scheme with 19 million cardholders but should a restaurant or retailer become part of Nectar?  You gain brand exposure and can reach out to the Nectar database of customers. But it takes considerable investment, it means your data must be shared and the ‘rewards to spend’ ratio may not entice customers.

Wonderful argues that mobile-friendly websites and advertising deals alone are not enough to ensure customer loyalty. But loyalty schemes delivered through a mobile app can work well when created with emotional pull and real value, for example:

OzSales - This membership retailer invested in mobile with an optimised site and app. Mobile sales are now nearing 50% of all sales.

Sodacard – A mobile app was created to scan QR codes as members enter the store or buy, earning points which become offers. Out of 25,000 loyalty program members, 40% now use the app.

More on loyalty from The Marketer

Paul Graves on customer retention – Loyalty is a myth

Kevin Roberts, CEO Saatchi & Saatchi, shares the secret to unreasonable brand loyalty

Kate Hilpern: How to inspire loyalty in a digital world