What is the reasoning behind a loyalty program at a restaurant?
Essentially, it relies on two ideas – Reward and support.
Are restaurant loyalty programmes effective? Or are they a race to the bottom? The verdict is that they are particularly effective for millennials. You know those 24-35-year-olds with a lot of disposable income who frequently eat out or order in?
The behavior that results in favorable outcomes will likely repeat in the opposite direction. Therefore, when you reward customers with a reward for their certain actions, you will make them more likely to continue participating in the same activities. This is the principle design for any loyalty scheme.
Restaurant loyalty programs are an extremely effective way to retain and engage this valuable segment of customers. But do you know if your loyalty programs are appropriate?
47% of the operators think their loyalty programs are the most effective. However, only 27% of customers share this view. Source.
Here are some ideas you can use in your restaurant to get results.
1. Loyalty points
Simple and simple to understand and, therefore, the most sought-after. Customers earn points based on the amount of their bill. It can attract new customers by offering loyalty points on their first purchase. In the meantime, loyal customers are able to earn more points through more purchases. Make sure you brand your loyalty program with your personal branding and style. This will help to increase your credibility with your clients.
2. Rewards networks
It is based on the same concept of loyalty points however it is for a set of restaurants. The aggregators and directories of restaurants manage this type of loyalty program. It’s a drawback that isn’t compatible with your dine-in program. The customers could develop loyalty to the network but won’t be loyal to the restaurant.
Tips
You do not intend to make the effort of establishing your own restaurant loyalty programme. However, keep in mind that the customer becomes loyal to the network rather than your restaurant.
3. Free Delivery
This is an easy and simple way to earn some brownie points among your clients. In addition, reduce delivery costs for customers who have reached certain thresholds.
4. Tiered Restaurant Loyalty programs
A tiered loyalty program for restaurants is ideal for attracting new customers in addition to enticing loyalists, growing repeat customers and increasing the order value. People who are new to the program sign up due to its simplicity. At the same time, loyalists remain engaged to earn higher rewards. We’ll not be surprised when your lifetime value of your customers increases dramatically for this particular group of customers.
Tips
When You have customers who order from you online and also dine at your restaurant.
5. Discounts and Free Items for Special Days
If you choose to implement an e-loyalty program tied to a tiered structure or any reward program that permits you to create a customer database, one of the types of loyalty program you can incorporate into your rewards is to include the offer of free products or discounts for special occasions throughout the year. For example, you could give customers participating in the loyalty programme a value and a free food item to commemorate their birthday or anniversary. Even though this particular program may only be used a handful of times per year, it can help build loyalty among your customers.
6. Referral Programs
A referral program lets customers can earn rewards when they refer potential customers who are not yet customers at your restaurant. For instance, you could provide a free appetizer to each newly-recruited customer that your previous customer recommends too. Referrals are a good example of an incentive program that could aid in growing your customer base organically.
7. Time-Bound Campaigns
“This weekend only”, or “Next 2 days only”. You’ve surely experienced these types of ads. Give something exclusively for a certain period only. This is a different way of enticing customers to join this loyalty scheme.
8. Jump The Queue
Let your loyalists book ahead on days with high interest or the weekend when it is busy. It also gives newcomers the reason they need to join Your loyalty plan.
Conclusion
Whether you utilise one or a mixture of strategies, producing a tribe of promoters is a superior technique for your restaurant’s growth, sales, and yields. Having the technology to make it more comfortable for you makes it that much easier.