28 Feb Restaurant Loyalty Programs 101
It is essential to have a Restaurant Loyalty Program, and here’s how to go about creating one.
It is easier to get a customer to come back than it is to acquire a new diner. Whether you agree with that already, or are yet to do the numbers to see if its true- there’s definitely merit in creating a well structured loyalty program for your restaurant or food business.
Today, with digital technologies, it is possible to create a loyalty system that is both convenient for your customer and also easy to track/manage as a business owner.
“Smartphone owners use restaurant loyalty apps primarily to build up points or “stars” for rewards (72%), such as free drinks and birthday meals.”
- RESTAURANT LOYALTY PROGRAMS:
Loyalty programs are essentially long term engaging marketing strategies that are created by business owners to attract their customers to continue to dine at their restaurant or delivery business after having already experienced it once.
Once the customer has tried or experienced the food/ ambience/ taste of your food business, it is easier to get them to come back a 2nd (and more) time. Nowadays, many restaurants have introduced loyalty programs from which they are earning even millions.
Even for a small-scale business, a well structured loyalty program can do wonders.
AVAILABLE OPTIONS:
Loyalty programs for restaurants can be variable, but choosing a POS enabled loyalty program is the best option. POS (point of sale) is actually the time where a retail transaction is completed. The merchant calculates the amount owed by customer, then prepares an invoice and indicates options for payment. By choosing this option; the most significant advantage is that the whole restaurant can be run from the same system. The customers can even earn and redeem points during home delivery orders.
Revolutionizing the loyalty program:
From the word modernizing, we mean making this easy for the customer and the staff. Just bring on your mobile phone, scan the code, make the purchase and earn points.
- There is no need to fill up your wallet with another card.
- No tension of forgetting the card at home. Your phone is always in your hand or bag.
- If an app of a restaurant is present on the phone, it would be more apparent that all the data could be seen and there may be additional push-notification based messages that can be sent too.
Look Beyond Monetary Rewards:
When choosing a reward in your loyalty program, it is essential to look into both sides. The reward should benefit both the customer and generates equally handsome revenue for the restaurant. Try reaching social issues like “buy a meal; sponsor a meal”, or upsize for 10% less than it would be to buy the additional items. These strategies will attract people more towards the restaurant and your loyalty program.
- Trustworthiness and involvement:
Building trust in your customers through loyalty programs helps to promote the name of your restaurant. Once the trust is built, the customer will recommend you to the friends and family increasing the sales and overall revenue. This will create a strong reputation, and as a result more customers would be attracted.
Loyalty programs should contain schemes that attract the existing customers like offering a free cake or free balloon decoration on occasions to make them feel special. Sending them a birthday SMS on their birthday will create a great positive recall too. Getting up in the morning of your birthday with the text of your favourite restaurant on your phone offering you a free cake will be quite a treat! The cake will attract them and perhaps even a whole dinner/ lunch or delivery order.
- Ways of spreading the loyalty program of the restaurant:
Apart from the digital promotion of loyalty program of the restaurant the manual promotion should be there too.
- Table tents: they should be present on the table, making the customer aware of the benefits getting from the loyalty program.
- Referral reward: It is a significant step to attract the customers like if they refer or suggest the restaurant to someone, they will get points to be added for their next order or they will get a free appetiser or side of their choice.
- Cross-promote your program with another local business or influencers.
CUSTOMER’S FEEDBACK:
Taking feedback from your customer is an essential component in building up a successful restaurant. Make an option of feedback on the mobile app with simple tick options from excellent to average, ask the customers to give a star rating on your app which will attract other customers after you use positive reviews in your marketing. Ask for suggestions and try to implement those to make the customer feels their involvement and importance.
Read our piece on Getting Positive Reviews for your restaurant
- MAKE PROMOTION EFFECTIVE:
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CRM (customer relationship management) is an approach to manage a company’s interaction with potential and existing customers. A good CRM system will also help with promotions. Most effective promotions can be done through emailers, retargeted ads, SMS or push notification if possible. The customers can be made aware of new deals and discounts that could be purchased from their points in their account. This will attract the customer to earn more points and in turn increase sales for your establishment.
- SKILLED STAFF:
Your staff should be proficient enough to deal with customers in a friendly and polite manner. Proper training should be done in this regard as they are the one who is in direct contact with diners. From cashier to the manager and especially the waiters- everyone should be aware and capable to deal with customers regarding the loyalty program of the restaurant.
Have you already read our piece on Digital Marketing for Restaurants & Food Businesses 101? If you’re an owner or marketer who has some suggestions or ideas to add, please do share your digital marketing for restaurant experience with us.
If you found our resource helpful and its helped you speed ahead of the other businesses in your area, we’d love to hear from you too!
Once you’re ready with a loyalty program, check out our piece on ‘Social Media for Restaurants’ to start promoting it!