Close
 

Christmas gifts and restaurant mints: Encouraging customer loyalty

  • Opinion
  • January 24, 2017
  • Greg Sampson
Christmas gifts and restaurant mints: Encouraging customer loyalty

With the fading of Christmas into memory the difficult task of choosing just the right gift or message in a card for friends and family is behind many of us. Others, like me, have significant birthdays coming up quickly – and let’s not forget Valentine’s Day is not far away. So, how important is it for your relationships that you put in the effort to get that gift that shows you have not only thought about the occasion but the person specifically? Or to write that highly personalised greeting in a card? It turns out that observing restaurant waiters is an unlikely but illuminating source of insight into the problem. It’s all about the mints.

The mints that waiters deliver at the end of the meal are the key to the issue. And it’s not the brand, quality or taste of the mints, instead it’s all in the way they are given.

As a starting point remembering to give people the mints with their bill will get about a 3 percent increase in tips compared to forgetting the mints. Forgetting a birthday present for a spouse could be a little costlier. It turns out, however, you can do a whole lot better by simply drawing people’s attention to the mints. The line “would anyone like some mints before they leave?” will do and you can reap tips 14 percent above forgetting altogether.

With just a bit more effort though you can super charge your tips by 21 percent. Deliver the mints to the table and then return to the table a few minutes later with a new set of mints and let the customers know you bought out the extra mints because you thought they might want some more. Now you get to stand back and watch the tips role in. By making it personal, by making people feel special and feel that you had been thinking about them you reap the rewards of gratitude, which is every gift giver’s goal. And the output of gratitude is a desire to reciprocate.

The evidence from the study of tipping behaviour supports the notion that personalisation is a super-charging element of the underlying reciprocity that drives the tipping behaviour. Tipping is a specific behaviour as regards reciprocity, but what of other behaviour such as repeat purchase or other forms of loyalty.

A comprehensive review of loyalty programme literature suggests that if we want to improve customer loyalty, we have to focus on creating a stronger emotional relationship by demonstrating that we know and value our customers. As marketers seeking to build relationships with customers, we should be playing the reciprocity game better.

We are awash with data about our customers and there is more being generated at ever increasing speed. Understanding thoughtful reciprocity demonstrates that there are two values for this information. Firstly developing better, more relevant products, services and experiences and secondly building true customer relationships rather than simply transactional loyalty. The latter offers much greater ROI than offering a straight price discount for volume for example, or simply placing the mints on the bill with no explanation.

Getting this right takes effort - the effort to sort through and understand the customer and the effort to create and execute the right gift. And the right gift that reaps the greatest reciprocity is the one that shows you know, understand and value your customer.

With that in mind I have a job to do – find that perfect gift for my wife’s birthday and, in this instance mints, are just not going to be enough.

This story originally appeared on Idealog.

​ ​

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Readings present revised plan for Courtenay Central

  • Property
  • May 16, 2019
  • Radio New Zealand
Readings present revised plan for Courtenay Central

The company that owns Courtenay Central in Wellington says it has big plans for redeveloping the complex - which is closed due to earthquake risks.

Read more
 
 

How to tell if you're a born retailer

  • Opinion
  • May 16, 2019
  • David Farrell
How to tell if you're a born retailer

Retail is a profession, but true retailers are born not made, says Dave Farrell.

Read more
 
 

Sustainable soap wrapper among major winners at Pride In Print Awards

  • Opinion
  • May 15, 2019
  • Sue Archibald
 Sustainable soap wrapper among major winners at Pride In Print Awards

A sustainable, heat sealed soap wrapper that is claimed to saving tonnes of PET plastic film, petrochemical wax and glue from landfill each year, has won a major award in the Pride In Print industry awards. Sue Archibald, Pride in Print Awards manager, shares more.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Regional rollercoaster
What does retail look like in 2019 for ...
Concept to closet
Business coverage of New Zealand Fashion Week.
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

Inside Little Yellow Bird’s equity crowdfunding campaign

  • News
  • May 15, 2019
  • Sarah Dunn
Inside Little Yellow Bird’s equity crowdfunding campaign

Wellington social enterprise Little Yellow Bird is seeking to scale its ethical apparel operation to the next level with an equity crowdfunding campaign.

Read more
 
 

Auckland design agency wins gold for retail packaging

  • News
  • May 14, 2019
  • Courtney Devereux
Auckland design agency wins gold for retail packaging

As a benchmark for impeccably designed packaging of consumer products, The Dieline Awards this year saw creative agency Onfire walk away with recognition for fantastic design for their retail products. We spoke with Matt Grantham, creative director at Onfire Design, about the importance of a strong visual brand in the retail product sector.

Read more
 

BYO containers policy live from June 1 at Foodstuffs stores

  • News
  • May 14, 2019
  • Sarah Dunn
BYO containers policy live from June 1 at Foodstuffs stores

Customers at Foodstuffs supermarkets’ instore butchery, seafood counter, delicatessen and bakery will be able to have food packed into their own clean, leak-proof containers from June 1.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}