As consumers, haven’t we all gone crazy over black Friday sales and discount coupons on our favorite brands? That’s exactly what your customers are seeking when they visit your restaurant for their favorite food! Hit their right spot, and they become loyal to your brand forever. And choosing the right loyalty program is your way to go!
In 2016, the restaurant market was worth more than 3.09 lakh crores, and the food-service industry is expected to grow to a whopping 5 lakh crores in 2021, at a Compound Annual Growth Rate (CAGR) of 10%.
In a booming market, losing customers is a cold pie nobody wants to eat. Given that, retaining customers can actually boost profits by 25%, which makes it doubly crucial to retain existing customers. This is where the loyalty programs sweep in.
Steps to create an engaging loyalty program:
Loyalty programs have proved to be a good way to make customers visit your restaurant over and over again. They have to appeal to the customers on a personal level.
The tech-savvy generation might not be quite thrilled with the coupon loyalty programs as much. So how does one build an upgraded loyalty program that appeals to the customers and drives sales?
As per the statistics of Aron Allen and Associates, coffee giant Starbuck’s ‘My Starbucks Rewards Loyalty Program’ was launched in 2010. It later added a digital component and went on to garner $1.2 billion in customer funds as of the first quarter of 2016. In 2017 the second quarter rewards accounted for 36 % of US Starbucks sales.
Identify the Right Program
Loyalty programs impact profits and need to be structured in a way that suits your business model. Be it visit based, spend based, or a combination of the two.
The QSR Magazine reports say that Panera introduced a tech-driven ‘integrated guest experience’ at an outlay of $42 million in 2012. The tech boosted sales, reduced the food receiving time to less than five 5 minutes from 6-9 minutes, and saved 1 – 4 minutes per order.
Make the Best Use of Data
There is nothing like the effective use of customer data to make a good loyalty program work great for your business.
Guest and Reserve apps, available in the market, enable you to deep-dive into the customers’ past visits and orders, their preferences in terms of dish preparation, seating arrangements, and so on.
You can also tag your customers in your system so that the arrival of a priority customer does not catch you on the wrong foot. Customers who visit your restaurant also receive promotional offers and feedback communications.
These apps have the analytics feature to generate insights on average waiting time, optimal table layouts, and more to help your brand get a competitive edge.
As per the statistics provided by the National Restaurant Association, tech is the rage for millennials with 32% factoring it in their choice of QSRs and 28% factoring in for their choice of full-service restaurants.
Keep It Easy with Feedback Apps
Feedback Apps cut out paper hassles and let you focus on the feedback that is valuable for your business. With these apps, you can get better insights on customer preferences. A bad experience can easily be neutralized on the spot with a great feedback app.
A contemporary, seamless feedback app integrated with your loyalty program will be simple, highly customizable, and give you insights on customer behavior for smarter marketing. Further, it will enable you to enhance the customer experience in different ways to win positive online and social media reviews.
36% of diners factor in information from review sites like Trip Advisor and Yelp, while 34% use social media information in their decisions.
Keep Your Staff in the loop
Well executed loyalty programs have one thing in common – a well-informed staff. Even if your loyalty program uses all the bells and whistles that go with the app, you just cannot afford to miss out on the human element.
So, before you roll out your loyalty program, take your staff into confidence, and seek their inputs. Your staff may be able to give you amazing insights into various aspects of customer behavior, preferences, etc., and their suggestions might prove to be extremely valuable for the success of your loyalty program.
Reward Programs are profitable for every business
Reward programs offered by restaurants drive traffic, track customer spending habits, help delight existing customers, and convert them to long-term customers. Be it a massive multi-outlet business or a small stand-alone one, every restaurant should offer a loyalty program to accelerate their business through repeat customers.
A well-planned loyalty program will let your customers relax, knowing that they’ll always earn more rewards – without taking a hit to their wallet. And for you, you can rest assured that your existing customers will be your everlasting ones.