Hostec 2010 Customer Loyalty Presentation

Hostec 2010 Customer Loyalty Presentation www.nfs-hospitality.com Tel: 0800 731 8451

The Compelling Case For Customer Loyalty and Practical Ways To Make It Happen Presenter: Luis De Souza CEO NFS Hospitality Client: Stuart Graffham Operations Manager Dover Street Wine Bar

The Psychology of the Consumer • Buyer Psychology is about; Price, Cost and Value • The key question is, what is your customer focused on? • The actions you need to take are: • Research/analyse your customer base • Segmentation: Who are your customers? • Find out what customers want • Make the connection with the customer epos solutions…. hotel solutions…. conference solutions…. club solutions

The Psychology of the Consumer • Behaviour Is Conditioned By: • Retail Experience e.g. Tesco Club Card • Rewards Using Credit / Store Cards • Wide Choice of Hospitality Offerings • The Feel-Good Factor • The Need to be Reminded. epos solutions…. hotel solutions…. conference solutions…. club solutions

Lets Look at the Value of a Customer • In the current economic climate it is vital that organisations recognise the total value of a loyal customer. • Lifetime Value of a Customer: • Price of breakfast: £6 • Frequency of twice a week or 104 times per year • Annual revenue: £624 • Total revenue with average of 10 year lifetime: £6240 • Loss of a Breakfast Client is a Loss of £6240 in Revenue epos solutions…. hotel solutions…. conference solutions…. club solutions

Lets Look at the Value of a Customer • Value of Increased Revenue: • Add a pastry selling at £1 with every breakfast sale • This increases revenue by 16% at £104 p.a. • Lifetime value: £1040 • Can we use a loyalty programme to increase revenue? epos solutions…. hotel solutions…. conference solutions…. club solutions

Loyalty Can Increase Revenue and Improve Retention!

What Can Hospitality Businesses Do? • A successful loyalty programme can utilise a range of methods to incentivise customers: • Value Based • Items Purchased • Points Earned • Frequency Based • Preference Based • Lottery Based epos solutions…. hotel solutions…. conference solutions…. club solutions

Making It Happen Web-Based Loyalty Portal Outlets Head Office Loyalty Programme Implementation & Maintenance Customers REWARD CARD epos solutions…. hotel solutions…. conference solutions…. club solutions

What Not To Do! • Do Not: • Offer discounts without examining their financial impact • Create complex loyalty programmes • Assume the customers are going to ask to participate in your loyalty programme • Stop an incentive programme without having a better one to replace it • Make a promise and fail to deliver • Assume that a lack of complaints is equal to a satisfied customer base. Loyalty is built over time through a collection of positive experiences. epos solutions…. hotel solutions…. conference solutions…. club solutions

Do not create a loyalty programme without an implementation plan

Key Factors for Success • Reward customer for larger orders and increased spending • Develop loyalty programmes for all customers • Prepare for and respond to changes in customer behaviour • Good, consistent communication and customer feedback is critical • Create an environment in which the customer truly wants to dine with you. epos solutions…. hotel solutions…. conference solutions…. club solutions

No incentive can replace the value of employees with great, service-oriented attitudes

Dover Street, Mayfair Case Study

What did Dover Street Implement? • Implemented the Reward Card to expand their customer base • Introduced a flexible points based reward scheme that keeps the customers returning • Introductory Offer - All new card holders receive 250 complimentary points worth £50, and earn 5 points for every pound spent • Card holders can choose to redeem their points against a variety of gifts and offers • Targeted Sales and Marketing was a key factor in the implementation • A key benefit has been the ability to identify and direct promotions to key groups • Quality customer information enabled Dover Street to identify customers yet to use their loyalty card so that specific offers could be made.

What were the Costs and Benefits? • Costs • No significant investment was required in equipment or IT infrastructure • Costs typically include: software, loyalty cards, marketing and administration. • Benefits • Increases revenue, retention and repeat business • Dover Street were able to track and reward profitable customers • Safeguards against employee abuse of promotional programmes • Increased brand recognition through card marketing • Captures valuable customer information such as spend patterns • A centralised web-based portal is cost-effective to operate.

The Future of Loyalty at Dover Street • Implement multiple loyalty programmes • Providing customers with access to the loyalty web portal • Better utilise customer data captured through the loyalty scheme.

Loyalty Programme Examples • Starbucks launched a loyalty programme based on 2D Bar-code Mobile Coupons • Pizza Hut unveiled its e-Gift Cards in November 2008 • Coffee Republic launched RFID Loyalty Cards in December 2008 • Promotions built around Purchasing Behaviour. epos solutions…. hotel solutions…. conference solutions…. club solutions

What is the Future of Loyalty in the Hospitality Industry? • Companies will continue to look for ways to differentiate loyalty programmes • Newer loyalty programs will be more segmented • Existing loyalty programs will become more tiered, focusing on high potential and high value customers • Trend towards more behavioural based loyalty programs • Customer Service - Purchases could trigger a visit to your table by the restaurant manager • Loyalty programs will no longer be bound by a cards • Everybody will play ball - As companies achieve integration and apply a softer hand to their loyalty programs, customer distrust will decrease and participation increase. epos solutions…. hotel solutions…. conference solutions…. club solutions

The NFS Loyalty Solution • Customisable Loyalty Cards • Aloha EPOS System • Web-based Enterprise Loyalty System • Web portal for customers to access their loyalty accounts (Member Link) • Consultancy Services • Helpdesk Support (24/7) epos solutions…. hotel solutions…. conference solutions…. club solutions

In Conclusion – Some Quotes In an economy where retailers struggle to differentiate themselves on price and product, the onus is on the quality of the customer ‘experience’ to maintain loyalty, keep customers engaged and ensure they keep putting money through the tills. Good customer satisfaction research is a fantastic investment. It provides information that helps structure business operations and motivate people. It gives valuable data about how companies are perceived, where there are opportunities to create customer loyalty and beat the competition. It can even guide recruitment, training and reward policies. When markets stop growing - even start shrinking - retailers have to focus with even more vigour on keeping their customers. Chasing after new customers in these times is expensive and the marketing methods and results are frequently unquantifiable. Budget needs to be diverted from 'getting' to 'keeping' customers.

Thank You www.nfs-hospitality.com Tel: 0800 731 8451

Hostec 2010 Customer Loyalty Presentation