Hospitality Industry Trends: Revenue Boosting Loyalty Programmes
22nd January 2024
There has been an undeniable shift in loyalty spending within the food and drink sector. Post-covid, the cost of living is largely impacting people’s ability to eat and drink out. With two-thirds of consumers cutting non-essential spending in 2024, eating out (78%) and takeaways (70%) are top targets (Insider Intelligence). When looking to hospitality industry trends, revenue and loyalty are often hand-in-hand. In order to see a returning customer base, a loyalty programme using Crunch’s is an innovative solution.
What is a prepaid loyalty card?
As seen most notably in Starbucks, this hospitality industry trend utilises prepaid loyalty cards to increase revenue and customer retention. Prepaid loyalty cards are the most innovative solution to customer retention. With the use of innovative finance technology, customers utilise a physical card or a customer app. No matter the delivery method, your product could be set up in a matter of months when you partner with Crunch Payments.
Working in a similar way to a London Underground Oyster Card, customers can load their prepaid card independently. This amount is only spendable at your specific retailer or locations.
This is a popular avenue for retention, as 57% of restaurants now offer some form of rewards or loyalty programme. (Insider Intelligence).
Why should my hospitality business create a prepaid loyalty card with Crunch?
On a surface level, your business can generate potential income based on the customer account totals. With a typical prepaid card expiry date of 2 years, a customer must spend their total within that time frame.
This hospitality industry trend’s revenue earning potential shouldn’t be dismissed as a passing fad. In addition to accurate revenue projections, prepaid cards can also create brand loyalty. When surveyed, 41% of consumers stated that loyalty programmes encourage them to buy from restaurants (Insider Intelligence).
To conclude, retention is created when:
- The card total can only be spent in your store, meaning that the money can’t be spent anywhere else.
- Customers receive rewards or discounts. These encourage customers to come back to either spend their rewards or continue to receive their discounted items.
- Incentives can only be collected when the loyalty card is used, encouraging customers to reload their card.
Which loyalty incentives could a prepaid card offer?
When considering loyalty incentives as a marketing strategy, hospitality industry trends indicate that there are two main revenue-boosting avenues. Both create savings for the customer overall, but each has a unique approach depending on the target audience:
- Discounted orders. When a customer spends using their loyalty card, they can receive a discounted price. This encourages customers to continue to top up their card, in order to receive the lower prices.
- Rewards. By using their loyalty card to purchase items, their total can convert to reward points. Once accrued, these are exchanged for items from your menu.
How can my business create its own prepaid loyalty card?
Don’t get left behind by hospitality industry trends, revenue is waiting to be made!
With Crunch by your side, we can help create your card programme in a matter of months (needs dependant). Including a personal account manager, development team and customer support post-launch; our full-stack solution supports your entire card programme journey.
Interested to learn more about this exciting revenue opportunity? Get in touch with our passionate team, and discover the power of Crunch’s prepaid loyalty card programmes today!
Crunch provides all of the components you need to launch your own bespoke card programme.Learn more
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