Today’s restaurant industry is highly competitive. Customers have endless options, and technology has made their ability to decide where to dine quicker and easier than ever before with information readily available at their fingertips.
It’s no secret that repeat customers are invaluable as they tend to spend more at your establishment than new customers. Having an effective loyalty program is key when it comes to helping you:
- Stand out from competitors
- Improve customer satisfaction
- Boost perceived value
- Build brand allegiance
Whether you are wanting to revamp an existing customer retention strategy or are looking to implement one, read on for some considerations for building an effective loyalty program.
Types of Loyalty Programs
While many operators are familiar with transactional-type programs such as special offers, discounts, and coupons, today’s most successful programs incorporate experiences and shared value-type options to deepen relationships with customers.
Experience-based programs
Strengthen engagement between your establishment, brand, and customers while providing an opportunity for additional interaction and collaboration.
Shared-value programs
Connect your customers to common values to create a stronger community, such as a mission or values-based interests.
of consumers are more likely to visit a restaurant if it has a loyalty program.
Source: Voucherify.io
of diners would spend more at a restaurant if it offered rewards.
Source: Voucherify.io
Here Are Some Common Program Structures:
Point-Based
Customers earn points for every purchase, most commonly 1 point for every dollar spent. Points can be redeemed for rewards like free appetizers or desserts – even merchandise
Teired
Each tier you create has its own criteria, such as a total amount spent or a set number of visits.
Paid Membership
Customers pay an annual fee to have access to exclusive benefits, which builds engagement through prime benefits that make them feel like a VIP.
Visit-Based
Rewards points based on the frequency of dining with you, and a set number of points earns a reward. Awards a point per visit, no tracking of spending amounts.
Now that you’ve determined what type of program you’d like to set up, you can begin to set clear goals and objectives.
Be sure to keep your customers top of mind and focus on what appeals to them. Common goals can include:
- Increase visits
- Enhance engagement
- Increase ticket size
- Grow customer base
Your program should align with the brand of your restaurant, appeal to the interests of your customer and support your business goals.
Steps to the Success of Your Loyalty Program
Choose Software that Integrates with Your POS
Creating a seamless experience for your customers is key, as program complexities can dissuade sign ups. Square Loyalty, a software program from Square and one of Sysco’s Solutions Partners, is simple to set up and integrates with Square POS, Square Invoices, and Square Online. Additionally, it supports integration with other point-of-sale systems.
Create Incentives and Rewards
Leverage your POS data to create tailored rewards based on the buying patterns of your customers. Establishing incentives that align to your business goals and their interests help increase the success for your loyalty program.
Engage Your Staff
A well-prepared team is essential to success. Front-of-house staff should be able to speak to the program with confidence, know how to enroll customers, and answer frequently asked questions.
Market Your Loyalty Program
Communicate to your customers using social media channels, email, in-house signage, and your website to highlight program benefits and how to sign up.
Measure and Modify
It’s good to review the effectiveness of your loyalty program. Surveys are a great tool for getting feedback that can help refine your program. Here are some metrics to consider:
- Enrollment – How many customers sign up for membership
- Redemption – How often members redeem rewards
- Average spend per visit – Compared to non-members
- Repeat visit frequency – Compared to non-members
