High Returns For Loyalty Schemes In New Zealand’s Hospitality Sector | CGA By NIQ

A fifth (22%) of New Zealand consumers are currently enrolled in On Premise venue-specific loyalty programs, according to CGA by NIQ’s On Premise Pulse+ Report.

The report highlights the burgeoning role loyalty schemes can play in enhancing consumer engagement and retention, while examining highly nuanced effectiveness and consumer perceptions of such programs.

Consumers who do participate show strong engagement levels. In fact, an impressive three quarters of enrolled consumers (78%) use their loyalty benefits frequently during visits to bars, restaurants, and pubs. This high-volume engagement highlights the potential competitive advantage of loyalty programs to nurture consumer loyalty and drive repeat business, in a time when consumer discretionary spend is down.

Restaurants emerge as the primary driver for loyalty engagement, accounting for two thirds of program uptake amongst 18-34 years olds (66%), 88% amongst 35–54-year-olds, and 60% amongst the 55+ demographic. On the other hand, loyalty programs are more popular in pubs amongst 35–54-year-olds and 55+ consumers than they are amongst younger drinkers. By comparison, 18-34 years olds are more likely to use loyalty schemes in late night bars and cocktail bars, and the 55+ group accounts for most usage in RSL / sports clubs.

This suggests a significant opportunity for venue operators and suppliers to collaborate on tailored loyalty strategies to resonate with their target audiences. The emphasis on exclusivity and unique rewards is particularly compelling for this purpose, with half of consumers (49%) valuing the select nature of rewards available to them through these programs.

This is why marketing strategies prioritising unique and exclusive loyalty rewards not available to non-subscribers or at competitor venues are especially attractive. It’s a persuasive approach likely to pique consumer interest and encourage greater participation in loyalty programs, particularly among younger demographics, who show a keen interest in exclusive offers and integrated payment options.

In addition, the data indicates that while adoption rates among younger age groups (18–34-year-olds and 35–54-year-olds) are similar at 25%, there’s room for growth, notably among older consumers (55+), where participation drops to 17%. Promotional efforts focusing on both the immediate benefits and the simplicity of joining and using loyalty programs could bridge this gap and boost overall participation rates.

Further insights from the report suggest consumers are eager for more extensive loyalty benefits, including food and drink combination offers, price reductions on specific days, such as half price Wine Not? Wednesdays, and rewards across different venues and experiences. Plus, there’s also a strong demand for integrated payment systems, allowing customers to pay with points.

Tom Graham, Client Success – ANZ said: “Shifting consumer expectations and market conditions make it an imperative for ambitious drinks brands, suppliers and venue operators to understand and implement effective loyalty schemes. For these purposes, our latest data provides the foundations for understanding how loyalty schemes can be leveraged to drive sustainable growth and heightened consumer satisfaction. At the end of the day, these programs not only drive engagement but also build a foundation for longer term consumer loyalty and advocacy."

CGA by NIQ’s OPUS will provide insights into On Premise occasion opportunities to enable you to build a winning On Premise strategy.

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