5 Tips On Creating A Loyalty Program For Your Restaurant

5 Tips On Creating A Loyalty Program For Your Restaurant

To win in the next normal, your restaurant will need to embrace technology in your business model. Consumers’ behaviors have shifted and are showing a greater focus on value for money. But, investment in technology and marketing can be expensive and cut into your margins. That’s why restaurants should focus on loyalty programs that reward customers with great offers. Programs should offer rewards that simultaneously provide high value to the consumer and carry low internal costs. Restaurant owners must strive to develop points of differentiation associated with their loyalty program and then properly position their programs against the competition.

Offer a Real-Time Motivation

How do you convince your customers to join your loyalty program? If not pitched well, you might demotivate and miss your chance to make them sign-up your membership program. But, there is always a higher chance if you can give them real-time motivation. For instance, if you offer them a free drink or an ice-cream on joining, the chance for them to sign-up is much more.

Create Referral Programs

If you incentivize your customers to come back, they most likely will. You can offer special points to an existing customer when someone joins your loyalty rewards program on his referral. These points can further be redeemed with a special offer as an added benefit for your customers to put in that effort.

Create Experiential Rewards

Experiential rewards involve giving loyal customers access to experiences they may not be able to enjoy otherwise. For example, you can give them first access to your secret menu or if you host an event, you can give them access for free.

Properly Segment Across and Within Tiers

Rather than simply adopting tier structures, you should revisit the programs and segment based on actual spending and engagement. A loyalty program’s report can help you to analyze this and effectively plan for your future programs for the benefits of both you and your customers.

Give Discounts or Free Items

You can set up a loyalty reward program that gives discounts on special days. For example, you give special discounts on your menu for their birthdays or anniversaries. You can set up automation for this to notify them well ahead of these special days for them to plan.

Bonus Tip: By focusing only on future discounts, programs may inadvertently convert loyal customers to price-sensitive ones. Thus programs should disguise or downplay price-related benefits.

You’ve now created a loyalty program. You’ve informed your customers about it. Great! Now, you’ve to highlight its benefits and promote it in a manner that customers get a head start and a motivation.