Restaurant Loyalty Programs: Turning First-Time Guests into Regulars
Attracting new customers is an essential part of every business, but but it’s even more important to keep those customers coming back.
One of the main goals of a restaurant business owner is to convert as many first-time guests to loyal regulars as possible. Because they’re the backbone of the business.
Superb food and perfect service is a good start. But loyalty programs can give that extra incentive for customers to come back through your doors. So, what is a loyalty program? How does it work and what benefits will it bring to your business?
The Variety of Loyalty Programs
While there are many different types of rewards programs, some are better suited for restaurants than others.
Point Programs
Many restaurants use point-based loyalty programs. The concept is simple: guests earn points with each purchase or dollar spent. Once they receive a certain number of points, they can receive a discount, free item or other valuable reward.
Many point-of-sale systems, like the one offered by Square, will allow you to sign up for this type of loyalty program. In this case, customers will receive points automatically when paying with their credit card or giving their email address at the checkout.
The key important thing with this type of program is to make sure that the rewards are worthwhile. Customers should be looking forward to spending more at your establishment just to get their next reward.
Birthday and Holiday Rewards
Another option is to have guests enter their email address and birthdate. This will allow you to send them a gift on their birthday, such as a free dessert, appetizer or even a meal. You can also send holiday-themed specials through personalized emails.
Customers love these types of reward programs because it doesn’t require any work on their part. At the same time, you’re also able to keep track of how often they visit your restaurant and reward them for their loyalty.
Punch Cards
Punch cards are one of the most popular types of customer reward programs, and for good reason: they offer valuable rewards and are easy to implement. Each time a customer makes a purchase, they receive a “punch” in their card. After they reach a certain number of “punches,” they receive a reward — usually a free item.
Customers love punch card programs because they don’t have to give any of their personal information to participate. It’s also one of the easiest programs for restaurants to implement because it’s inexpensive. The only things you need are stack of cards and a hole puncher.
Apps
Some restaurants have app-based loyalty programs. These are especially popular with chain restaurants because they allow customers to enjoy rewards no matter where they are in the world. Guests simply sign into their free app account and “check in” when making a purchase from the restaurant.
One major benefit to an app is that it eliminates the need for guests to carry around cards or remember their rewards numbers.
An app-based loyalty program is more expensive to implement. You’ll need to create a customized app for this purpose, which may be out of your budget range.
Tiered Programs
A tiered loyalty program is another option for restaurants. These types of programs reward initial loyalty and also encourage more purchases.
As the title suggests, these programs have different levels, or tiers, of loyalty. Customers will receive points each time they make a purchase. The more points they accumulate, the higher their loyalty level will rise. The higher the loyalty level, the greater the rewards.
A tiered system can be easily implemented into a regular point-based loyalty program.
This Is Why You Should Launch a Loyalty Program
Loyalty programs offer a wealth of benefits to restaurants. When implemented properly, the right type of loyalty program can provide the following advantages:
- Boosts sales
- Transforms guests to regulars
- Improves customer happiness
Tips to Succeed
Many restaurant owners make the mistake of assuming that they can just launch a rewards program and reap the rewards without putting in much effort. But not all rewards programs are successful right off the bat. Sometimes, success comes with trial and error.
Here are four tips successful loyalty programs follow:
- Keep it as simple as possible
- Stay on brand
- Offer valuable and attainable rewards
- Listen to customer feedback
Source: https://mcdonaldpaper.com/blog/restaurant-loyalty-programs
