KARNATAK UNIVERSITY

DHARWAD

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

REPORT ON

“CUSTOMER LOYALTY TOWARDS RESTAURANT”

SSUBMITTED BY

SHASHIKALA B G MBA09001041
General meaning of loyalty:

The term customer loyalty is used to describe the behavior of repeat customers, as well as those
that offer good ratings, reviews. Some customers do a particular company a great service by
offering favorable word of mouth publicity regarding a product, telling friends and family, thus
adding them to the number of loyal customers. However, customer loyalty includes much more.
It is a process, a program, or a group of programs geared toward keeping a client happy so he or
she will provide more business.

Excellent customer service is another key element in gaining customer loyalty. If a client has a
problem, the company should do whatever it takes to make things right. If a product is faulty, it
should be replaced or the customer's money should be refunded. This should be standard
procedure for any reputable business, but those who wish to develop customer loyalty on a large-
scale basis may also go above and beyond the standard. They may offer even more by way of
free gifts or discounts to appease the customer.

On average if a customer has a good experience they will tell around 3 people. But if it ends up
being a disappointing one, not only is it unlikely they will return, but the often embellished story
of their poor experience will be relayed to as many as 10 people. Those 10 people are highly
likely to pass it on again, and so on, resulting in a huge wave of negative publicity.

Importance of loyalty or loyal customer:

 Purchase your products and services again and again over time
 Increase the volume of their purchases
  Buy beyond traditional purchases, across product lines
 Refer your company's products and services to others
 Become immune to the pull of the competition
 Give your company the benefit of the doubt when something goes wrong.
 It costs 7-10 times more to recruit a new customer than to keep an existing one.
 A gain in customer loyalty of only 5% can lift lifetime profits per customer by as much as
95%
 An increase in loyalty of just 2% is, in some sectors, equivalent to a 10% cost reduction.

Objectives of customer loyalty:

 Maintain market share,

 Get valuable customers,
 Retain and increase valuable customers,
 Upgrade high value customers,
 Maintain a significant group of moderate value customers
 Form an opportunity cost through a competitor
 To maintain growth
 To get reputation

Some tips to make customer loyal in restaurants:

 Food quality
 Menu selection
 Menu pricing and value
 Waiting times
 Promptness of service
 Professionalism and friendliness of server(s)
 Server's knowledge of menu
 Decor
 Restaurant location
  Overall restaurant experience
 Asking customers for their contact details whenever they phone, book online or walk in
 Raffle off a bottle of wine to customers who write down their details and pop them into a
bowl
 Use feedback forms when delivering their bill
 If it’s a business lunch, ask the organizer for their contact details and All the information
you capture on customers can then be fed into your database for follow up

Xanadu Resort Hotel success the result of customer loyalty

The hotel offers a high-class, all-inclusive resort experience and was selected as the world’s best
hotel by a world-renowned tour operator, Thomas Cook. Xanadu was built on the inspiration of
Kublai Khan’s summer palace and offers a journey back to ancient Roman times with its
columned walkways, ancient-style pools and amphitheater. But Xanadu’s most striking feature is
its customer service and its commitment to customer satisfaction, which in turn brings customer
loyalty to the resort, says Ayşegül Oğuz, who runs public relations for Xanadu. “We see most
customers coming back year after year. We have become like a family to our customers. We are
on a first name basis with many of our customers,” she told Today’s Zaman. Indeed, over 50
percent of resort clients make their vacation plans through the resort, providing a steady stream
of clientele to the hotel. Loyal customers are kept abreast of what is happening at the resort via
newsletters distributed by the hotel year-round.

Entering the hotel’s lobby, guests feel that the inside keeps the promise that the hotel’s first
impression makes. The personnel provide services such as an information desk and room service
24 hours a day. The hotel has four floors, while 12 bungalows fan out from it villa style building,
for a total of 420 rooms, all providing enviable views over the turquoise-colored Mediterranean
Sea and sumptuous gardens.
The hotel also offers several outdoor and indoor activities that hotel guests can relax and enjoy
for the duration of their holiday. The guests can take advantage of a range of activities such as
canoeing, snorkeling, basketball, volleyball, archery and a mini football pitch, plus an 18-hole
putting green, driving range, and six tennis courts – all of which are included in the price. You
can enjoy the beach, pools and outside sports during the day and take part in bowling, darts,
billiards, table tennis, Internet, video games, game tables for board games and widescreen TV in
the hotel’s main building.

After having a long, fun day, guests can relax by spending time at the hotel’s spa. The Shang-Du
Spa takes its name from Kublai Khan’s summer palace. The spa offers a wide range of
treatments from Ayurvedic to European and Asian massages, in one of the 10 single treatment
rooms. The spa also has a great honeymoon package for newlyweds.

Meeting rooms of different shapes and sizes complete with secretarial and simultaneous
translation services make the hotel suitable for business congresses and meetings. Additionally,
Xanadu can also arrange catering, entertainment, special events and even weddings replete with
a theme and decorations. Xanadu’s wedding coordinator personally advises and assists couples
for every step of their ceremony to help organize all the important “details,” from location choice
(beach, garden, ball room) to hair salon/spa appointments. All designed to make a wedding day
perfect.