PRESS RELEASE: Loyalty Program Stats Show Impact of COVID-19 on Cafes Around The World
Newly released data from loyalty experts Stamp Me Loyalty Solutions has highlighted the dramatic decline in global cafe loyalty purchases since the COVID-19 pandemic, and some interesting effects of lockdowns in different countries.
Countries involved in this analysis include the UK, Australia, USA, Canada and New Zealand, amongst others, which make up Stamp Me’s key markets.
The data shows the number of digital ‘stamps’ collected on a loyalty program app each week across cafes globally, between the beginning of February to mid-May 2020.
The stats include loyalty stamps redeemed from take-away and in-store purchases of coffee.
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At the end of February into the beginning of March, a slight peak in transactions can be seen generally across the board. It is followed by a noticeable sudden decrease for the week commencing 23 March, which reflects when strict lockdown measures were enforced across the globe.
The data also shows that loyalty transactions are picking-up again as lockdown restrictions start to ease, especially in New Zealand and Australia.
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Looking at the data, it is possible to draw many assumptions, including the effect of the different styles and timelines of lockdowns policies on the hospitality industry, in Stamp Me’s core markets.
“An interesting thing about this data is that the dramatic effect of COVID-19 on the hospitality industry can be observed globally, as you would expect”, says Stamp Me Loyalty Solutions co-founder, Alan Donaldson.
“However seeing the data side-by-side like this also gives an indication of the different approaches taken by governments with COVID-19 prevention itself.”
“For example, New Zealand’s tough ‘short and sharp’ lockdown policy lasts mere weeks before it slowly resets towards ‘business as usual’, mirroring the country’s success with quickly containing the virus.”
“The data also mirrors what we would expect given the advice of ‘social distancing’ in countries that didn’t completely shut down hospitality businesses. The USA, for example, has seen a decline in purchases, but sales have not halted as much as other countries.”
“Then there’s the similarity between the shape of Australia’s and the USA’s graph, which is fascinating considering they had quite different outcomes with the spread and impacts of the virus.”
Interestingly, as lockdown restrictions start to ease around the globe, which is also reflected in the stamp collection data, the demand for digital loyalty solutions is increasing.
“We have seen a notable rise in merchant subscriptions for our digital loyalty platform over the past few weeks” states Michaela Ward, Head of Marketing at Stamp Me Loyalty Solutions.
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“We believe that COVID-19 has highlighted just how important it is for businesses to have a digital and emotional connection to their customers.”
“In fact, there’s never been a more important time for businesses to strengthen relationships with their existing customers. Without a loyal customer’s active support, many businesses simply won’t see the other side of this pandemic.”
“There’s no denying that the repercussions of COVID-19 are going to be felt for many more years. However, we believe that existing customers will be the key to improving business health, which is why building loyalty should be a long-term and on-going strategy.”
