Does Your Restaurant Have a Loyalty Program? 6 Benefits to Consider

According to one survey, you can increase your profit by 25% with just a 5% increase in customer retention. Another survey shows that 57% of consumers spend more with brands they are loyal to.

With just these two statistics in mind, you can see how important a loyalty program is to your restaurant’s overall business. With a loyalty program, you can offer your current customers incentives such as discounts and rewards as a thank you for their business.

Does your restaurant have a loyalty program?

With the right system, you can increase your business with a little bit of effort. The loyalty rewards can range from a discount after a certain dollar amount is reached or even a free meal after a certain amount of visits. The best part is that you customize a system that works for your restaurant and your customers.

What Do Your Customers Want in a Loyalty Program?

As you craft your reward program, you want to keep your customers front of mind. If you aren’t sure what would bring them back to your restaurant on a consistent basis, just ask them.

You may find they are looking for things like this in a loyalty program:

• Discounts on meals
• Free meals
• Special events
• Personalized offers based on their favorite food
• Exclusive experiences just for rewards members

Yes, discounts and free food are at the top of the list, but your customers may want special offers that appeal just to them. Personalization is key here.

Now that we’ve looked at what your customers are looking for let’s look at the six benefits to consider.

#1: Your Restaurant Stays Top of Mind

The first benefit of a rewards program is that your customers are constantly reminded of your restaurant. You can offer a physical loyalty card, or better yet, you can launch a digital loyalty program.

You might do the online version through your point of sale system or your app. Doing this keeps you in front of your customers, reminding them of their rewards and how much they have to spend to earn another reward. The app also lives on their smartphones, so they’ll see it often on their home screen.

A physical card can work as well, and your customers might store it in their wallet. However, do note these cards can become lost, so it’s best to have a digital program.

You can also send your customers email and SMS text messages to stay in front of them and remind them to dine with you.

#2: You Increase Revenue

Another way a loyalty program benefits your restaurant is that it brings customers back on a regular basis. Why? They want to earn free food.

Your returning customers generally spend more in your restaurant, too. They like your food and are loyal to you, so they will often purchase more food, such as appetizers and desserts, in addition to their entrée.

They also spend more money because they want to earn their rewards and discounts quickly. So be sure and reward them for the extra spend.

#3: You Improve Customer Retention

It’s always easier and more cost effective to retain a current customer than it is to get a new one. Plus, it costs more to acquire new customers.

By using the strategy behind a rewards program, you encourage repeat visits to your restaurant and increase your retention rate. This in turn increases your overall sales.

The other added benefit is that your loyal (and rewarded) customers are likely to become brand ambassadors. If they tell friends, family, and co-workers about your restaurant, you just got very inexpensive marketing! If their friends visit your restaurant, all you are out is the cost of the reward.

#4: Your Restaurant Stands Above the Competition

You may live in a city with a lot of restaurants. Do you struggle to differentiate yourself? You can do that through a strategic and creative loyalty program.

This is a great way to stand out in a crowded field of restaurants. For example, your customer may be looking for a place to eat and decide to dine with you to continue earning rewards. Or a new customer may sign up for your program and then come dine with you.  

Because of your loyalty program, you are basically keeping customers away from the competition. They want to build up points with you, and they don’t want to miss out, so you come out on top.

#5: You Get Trackable Data

You can use the reporting in your loyalty program to learn more about your guests. For example, you can:

• Track the most ordered dishes.
• Learn what time your customers visit your restaurant, including day and time.
• See how long it takes the average customer to earn a reward.

With this data in hand, you can offer your guests more targeted promotions to further enhance customer retention.

#6: You Build Relationships

Another perk of the loyalty program is its ability to help you build relationships and increase customer engagement. (tweet this)

Loyalty programs encourage your guests to interact with you online on your website, in your app, and on your social media accounts, as well as in your restaurant.

You can even market to customers through your loyalty program, offering them discounts on brand-new dishes and showcasing special events.

In addition, you can offer rewards for customers who share photos, write reviews, and even tag you in posts. This also helps to build relationships with diners.

To Conclude

With more than 75% of consumers saying they favor brands if they have a loyalty program, it’s time to act.

If you don’t have a program, create one soon. If you do have one, perhaps it’s time to review and refine it for the best success.

Loyalty programs work. They show your diners you care about them by offering them specials and discounts. Your customers will reward you by visiting more often! (tweet this)

Finally, remember that loyalty programs are part of your extensive marketing arsenal. So, consider how you’ll use the program as a loyalty tool, and watch your sales rise.

Is your website ready to help you succeed by hosting your loyalty program? At Restaurant Engine, we can create a website for you that provides the pivotal spot for your digital marketing. Your website is the centerpiece of your online marketing, and it needs to look and perform well to increase your online orders and reservations. You can count on us to create an amazing website that presents a unified brand for your restaurant and works across all digital platforms. Let us help you make the perfect site that draws customers in, improves customer engagement and your conversion rate, and enables you to grow your business!  

Are you ready to take your restaurant to the next level with a new website?

Get your free website consultation today!

Images: Esra Afşar and Marco de Winter on Unsplash

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