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Loyalty marketing in restaurants would always be a must-have as part of the marketing activities to retain customers, specifically those crazy foodies. So, what really makes these programs stick? Let’s look at the benefits, some successful implementations of loyalty programs within the restaurant service line, and how they actually work.
What is loyalty marketing?
Loyalty marketing is the process that helps businesses attract and retain their loyal customers by giving rewards and discounts. These often result in marketers tapping into strategies such as social media promotions and referral programs to engage and gather trust from customers to keep regular shoppers coming. Restaurant loyalty marketing simply means you give special perks to those that regularly visit your place, like rewards or menu items being charged at a discount rate, freebies, and gift cards. You may opt for a points system, such that every time they spend a dollar, points accumulate in your accounts. The basic idea of loyalty marketing is to remind those frequent flyers of how much you care for them.
Benefits of restaurant loyalty programs
1. Improve customer retention
Generally, loyalty programs make it easier to retain existing customers, as rewards for repeat visits strengthen the relationship with the customers.
2. Customer satisfaction
Rewards are a form of personalised perk that increases a customer’s perception of being appreciated, leading to improved satisfaction with the restaurant.
3. Customer engagement
Rewards show interest in an offer or an event and make them engage more with the brand.
4. Building brand identity
Customer loyalty programs help in speaking about your values and separate your restaurant from competitors.
5. Access customer data
Get valuable insights into customer needs and preferences, allowing for customised experiences.
6. Word-of-mouth marketing
Happy and loyal customers spread the word out, pushing new business without a cost increase.
7. Create trust
Positive rewards create trust and invoke long-term loyalty in customers.
8. Real customer reviews
This encourages honest reviews through loyalty programs. Also, their feedback gives an opportunity to improve the customer’s experiences.
9. Inventory management
Orders are traced through loyalty programs which help to adjust the inventory according to items that are more in demand.
10. Promoting upselling
Rewards motivate customers to spend more by giving better discounts for higher purchases.
Do restaurant loyalty programs actually work?
The short answer is, “Absolutely.” The slightly longer answer is, “Absolutely, if you know how to set them up right.” Knowing your audience is critical to successful restaurant loyalty marketing. Once you know what drives them, you can attract them and keep them. So, before you start coming up with loyalty program ideas, consider these questions about your customers.
- Are they males or females?
- What’s their average age?
- Do they visit with their partners, family, or just as a bunch of friends?
- Where do they live?
- What is their income level?
- What do they do?
- Do they spend a lot while dining out, or do they look more for discounts?
- Are they active users of social media?
- Dine in, or more likely just walk in?
- Ever ordered from you online?
By answering these, you will know exactly what benefits will make them become loyal customers.
Restaurant loyalty program ideas
Planning to start a customer loyalty program at your restaurant? Well, then you’ll need some ideas to get yourself started.
1. Points system: The points system is the classic one. Here, customers earn points based on how much money they spend, and once they rack up enough, they can cash those in for cool rewards, discounts, or free items. This is a great deal for those who already love your food and probably would have been dining with you anyway, but now they will get to enjoy some perks too.
2. Jump in queue: Since you are an owner of a restaurant, you are most likely aware of how crazy things can get during peak seasons, more so around special days like Christmas, Valentine’s Day, etc. One loyalty incentive will be offering the book in advance privilege. This way, a customer can come and secure a table beforehand so that he does not have to stand around waiting for an opening.
3. Secret menu: Everyone wants to feel special, and a good loyalty program will make your customers feel exactly the same. You could then introduce “secret menus” for loyal customers and watch the way they rush to your restaurants. Create levels where you get tastings of items that aren’t available to the public at large.
4. Loyalty app: If possible, having a loyalty app will ease things for you and your customers. Encourage them to download the application, sign up, and start earning points with each visit. The best loyalty apps offer features beyond punch cards, making the experience more engaging.
5. Punch cards: Punch cards in particular, have been around since one of the earliest forms of restaurant loyalty, and these still carry as much value today for many restaurant owners.
Those restaurants that have great customer loyalty programs are likely to do better than their competitors. So, if you’re reading this blog, then this is a huge opportunity to enhance your restaurant sales by exploring loyalty marketing. Remember that building loyalty is all about getting to know your customers.
Still confused about where to start?
We do understand that opening a restaurant isn’t easy. It takes a ton of cash and a lot of hard work. So, how are you going to make your restaurant shine brighter than the rest? That’s where we come in. At Marketing Platter, our deliciously effective marketing packages are designed to help you become the top choice in your area. Ready to take your business to the next level? Contact us now and get a free 30-minute marketing strategy call.
