Effectiveness of Customer Loyalty

Hypotheses
Ho – Improvements in customer service have no impact on the reputation, credibility, and overall functionality of the Lin Tai Fung restaurant. This means that improvements in customer service will not boost the effectiveness and the performance of the Ling Tai Fung restaurant.

H1 – The positive hypothesis is that customer service has a fundamental impact on the performance and the effectiveness of the restaurant. This means the restaurant should invest in customer service towards the realization of better performance and improved productivity.

Discussion of Survey Findings and Conclusion

Customer service in the food and beverage industry centers on creating an appropriate consumer experience. The hospitality industry remains among the most volatile and dynamic platforms (Harvard Business Review, 2011, 3). The research objectives and goals are defined as; to identify what customers deem as quality, to establish ways through which customer loyalty can be enhanced, to identify the key primary indicators for loyalty, and to determine ways to improve the Singapore restaurant industry can be improved. The effectiveness of customer loyalty is identified as; attracting financial and economic success, strengthening brand identity and positioning, and enabling the firm to survive tough financial times. Most importantly for loyalty is the ability to set a restaurant away from the competition particularly in a contested industry like the food and beverage sector. Customer loyalty is influenced by a strong brand philosophy that defines staff actions, values, and ideals.

Customer experience can be strengthened by improving the food quality, meet consumer needs, and provide satisfaction.

A DISSERTATION ON THE EFFECTIVENESS OF CUSTOMER LOYALTY AND HOW IT CAN BE INCREASED IN SINGAPORE’S RESTAURANT INDUSTRY
THE DIN TAI FUNG RESTAURANT

Out of the total survey respondents of 200, 14 were in the group bracket of 16 to 22 years old, 32 of the respondents were aged between 22 and 29 years, and 65 respondents were between the ages of 30 and 39 years old. A majority of the survey respondents were 40 years and over with a population of 89. In terms of nationality, 189 of the survey respondents were of Chinese descent while 6 were of Indian origin and 5 subscribed to other nationalities. The respondents have also classified according to monthly income. 2 of the respondents earn less than $1500 in monthly income, 22 earns between $1500 and $2500, 43 earn between $2500 and $3500, 56 earns between $3500 and $4500, while 40 respondents earn between $4500 and $5500. 37 of the respondents earn more than $5500 in monthly income.
The survey findings reveal that a considerable number of consumers will be most likely to recommend Din Tai Fung to friends or colleagues. The analysis creates insight into the effectiveness of customer satisfaction and how to improve loyalty in the Singaporean restaurant industry. 168 respondents are extremely likely to suggest dining at the restaurant while 32 are likely to recommend Din Tai Fung. As such, all of the respondents would refer the eatery to other people which can be attributed to customer satisfaction which creates loyalty. Another critical finding that reflects customer loyalty is revealed by the number of consumers that are willing to sign up for the restaurant’s loyalty program. 199 respondents were recorded as willing to sign up, and only 1 opted not to sign up to Din Tai Fung’s loyalty program. Findings assert that a majority of customers visit the restaurants due to the love for Chinese cuisine while 59 of the respondents dine at Din Tai Fung solely for the ’18 folds’. None of the respondents visit the restaurant because the staff is friendly which indicates poor relations by the workforce. Only 4 of the respondents identified unique food as the reason for dining at Din Tai Fung.
The findings reveal that a considerable number of the respondents are likely to return to the restaurant. 187 of the respondents indicated that they are extremely likely to return to Din Tai Fung again while 13 suggested they are very likely to dine at the eatery again. None of the respondents suggested that they would not return for subsequent meals. The survey findings indicate a high retention rate of customers which is influenced by loyalty among the consumers. 135 respondents indicate that the accumulation of points for percentage redemptions as the major benefit sought from Din Tai Fung’s loyalty program while 17 respondents want to enjoy cash backs from the loyalty program. The remaining 48 respondents also seek to accumulate points but for voucher redemptions from the restaurant’s loyalty program.
The study findings further reveal that 112 respondents prefer ordering through a digit compared to 88 that prefer ordering through the wait. The finding reflects the automation of processes and services in various industries as a means of competitive advantage. The findings also reveal what members of the Din Tai Fung prefer. 179 respondents indicated that they prefer 10 % off the total bill for official members while 11 prefer 20% off Red Bean Xiao Long Bao with chocolate lava. 6 respondents opted for free ‘Ice Lemon Tea’ with the purchase of 10 Xiao Long Bao. 4 respondents preferred 1 for 1 shrimp wontons tossed in chicken broth. The analysis of the food sectors brings key aspects into close perspective including the nature of the industry, major sources of food supplies, and market concentration.
The survey findings reveal that Din Tai Fung is considered to provide excellent service as 135 respondents used the words ‘high quality to describe the restaurant while 35 labeled the café as ‘reliable’. 24n respondents described the restaurant as ‘good value for money whereas 6 respondents termed the eatery as being overpriced. The results also show that the chili crap is the Singaporean Flavored Xiao Long Bao that 178 respondents would like Din Tai Fung to offer in the future. The other 15 respondents indicated the Laksa Xiao Long Bao as the preferred flavor while 7 respondents suggested the Nasi Lemak Xiao Long Bao. None of the respondents indicated the chicken rice or the Sambal Xiao Long Bao.
In regards to quality perception, the findings show that 79 of the respondents view quality in Din Tai Fung as the ambiance of the restaurant. 67 respondents view quality as the customer service provided while 54 respondents view quality as the range of dishes. None of the respondents cited the speed of service delivery as a perception of quality at Din Tai Fung. In terms of improving the loyalty program, the findings assert that partnerships with other brands under the same parent company (BreadTalk Group Pte Ltd) is the outstanding strategy supported by 89 respondents. 59 of the respondents indicated that birthday special promotions will improve the customer loyalty program while 52 respondents suggested monthly giveaways to enhance the loyalty scheme.
The survey findings reveal that Facebook is the most popular online networking site which is used by over 149 of the respondents. 39 of the respondents indicated that Instagram is the preferred social media platform for sharing images of foods and drinks. 12 of the respondents revealed that they do not use any of the online networking sites. Findings show that Snapchat is unpopular since none of the customers use the online platform. The findings also indicate that 158 of the consumers do not follow any of the Din Tai Fung online platforms. Facebook is the only medium with a following of 42 of the respondents. Twitter and Instagram did not record any following as a social platform for enhancing the effectiveness of customer loyalty.
Bibliography
Harvard Business Review. (2011). Harvard business review on increasing customer loyalty. Boston, Mass, Harvard Business Review Press.