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Why Your Loyalty Program is Not Creating Loyal Customers?

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.

 

Restaurants Need Waiters

Do Restaurants Need Waiters?

Restaurants have always been considered to need a personal touch, where the staff must attend each visitor personally. But times are changing, and automated systems are gradually taking over the ordering system in the F&B industry and helping deliver a more personalized experience. Some might think that’s counter-intuitive, but let’s dive a little deeper to see what’s going on.

  • When Technology Teaches Manners

How often do you see a guest snapping his fingers or whistling while calling a waiter, while yelling “hero”, “boss” or even “oye”? If one of your waiters makes a mistake, many people don’t hesitate to reprimand them publicly, often loudly, while using demeaning language. Online ordering systems can minimize the chances of mistakes or delays when it comes to placing an order while increasing efficiency and reducing costs by reducing the number of staff needed on the floor. Furthermore, you may even gain the resources and time to train the remaining staff more thoroughly so they can handle such situations more appropriately.

 

  • Avoiding confusion with newly appointed waiters

It often happens that new hired staff take time to pick up speed and are unable to serve your customers the way they expect. For instance, remembering your guest’s name, their favourites from the menu and maybe even their preferred table has a profound impact on how your restaurant is perceived and recalled. Now, with in-restaurant technology, like inResto DineIn, you will be able to keep each diner on record and keep a tab on their preferences so that you serve them better next time.

 

  • Online Ordering and its many benefits

So many relishing and difficult-to-pronounce names on the menu, but how many waiters do you have who can can explain them all? It takes a while for the staff to memorize the menu and gain expertise in explaining it to a diner without having to go back to the manager or the chef. Imagine how convenient it would be if customers could get all the details of the dish through a picture and description, all on a tab or even their own phone? Along with this, the menu could be in multiple languages, thereby appealing to tourists and residents who speak other languages more fluently. There can even be pop-ups on the digital menu about food-pairing recommendations, deals and promotions on certain menu items or even specials for the day. No confusion, no waiting for the waiter, no more delayed orders, and no more dirty menu cards.

 

  • Preventing bad reviews on Social Media

A diner’s visit to a restaurant is incomplete without diners putting a check-in status or posting food pictures on social media. But gradually, these have become platforms for people to vent about their bad experiences. With the emergence of food bloggers and food critics, and just discerning diners, a restaurant’s reputation is always at risk. Having a system that alerts you of bad feedback immediately can save your online reputation and maybe even gain a loyal customer. And now, this has already become a reality with feedback apps giving restaurant managers real-time alerts of bad customer experiences.

 

  • Efficient Resource Management

Good staff makes for loyal customers, but what makes a good waiter? It takes a lot of time and money to train your staff to go beyond taking orders and serving, but also to be friendly with the diners and know how to make them happy. Now, you can replace personnel with ordering apps. Now, your 60 to 100 seater restaurant can actually be managed by one cashier and a couple of waiters. So why spend a fortune on training a large team, which is vulnerable to numerous variables, including human error?

Obviously, completely replacing waiters in restaurants is not feasible, but having a smaller team has many benefits. This is where technology can play an important role. Today, customers are much more accepting of technology, and you can take advantage of it by reducing manpower and human error for more efficient and effective operations. Furthermore, with the customer data you have, you can make the experience a lot more personal by offering them their favourite dishes, drinks and tables, and maybe even offer them a bit of a discount.

Let’s face it. The future of dining is here. Let’s make the most of it for the sake of our customers. inResto DineIn is one of the online menu systems that are making a huge splash in the industry. If you want to find out more about it, click here.