Purchasing a loyalty program is different from buying any other asset for your business as it can completely change the business dynamics. You should treat it as in investment instead on just another purchase. Having a rewards program is absolutely essential for restaurants especially as they have frequently returning customers. Prior to digital solutions, most restaurants focused on producing printed stamp cards which would result in high cost over time, and often time customers would lost it as well. Digitalized mobile punch cards are more personalized, and restaurants even have the ability to push out notification that are more interactive between restaurant and customer.
Let us have a look at the five reasons why your restaurant needs a loyalty program:
1) Simple & Easy
We’ve come a long way since the traditional punch cards are so yesterday. Today, restaurants can set any loyalty campaigns or rewards as they want via a web-based solutions. They can set and reward specific customers for specific purchase behavior. Once the program is up, all you need to do is sit down and wait for the business to come to you. Restaurant can avoid complicated paperwork, entering information about each and every customer so they will be free up to perform more meaningful and effective task.
2) You Have Nothing To lose
There’s no way that your rewards program could fail after careful planning and execution. Furthermore, if you want to avoid losing money after implementing a rewards program, allow your customers to spend a certain amount of money or time before they can earn any points that can be applied to their account. Example, create a reward program that offers customer free menu item after a number of visits or purchases.
3) Encourage Repeat Diners
What is 80/20 rules? It simply means that 20% of your returning customer contribute at least 80% of sales to your business. Being pampered and rewarded for repeat business will significantly sits high on all customer’s mind. You can expect by providing incentives or deals for loyalty will encourage customer to be back at your doorstep again. According to Author Fred Reichheld, on The Loyalty Effect “…a 5% increase in customer retention can lead to a 25-100% increase in profit for your company.” Just merely a small increase of retention can have strong results.
4) Attract New Diners
According to the 2014 Bond Brand Loyalty Report, when customers received relevant communications, their overall satisfaction with loyalty programs will increase 5x higher. When it comes to message dissemination, loyalty programs can be tailored to focus on specific geographic location and on people demographic. That more personalized information will help turn a one-time customers to a repeat customers. Especially also if the whole rewards experience are interactive, customers are more likely to spread the words to others.
5) Sales Is King
Mobilizing rewards program allow restaurant to remind customers about their great menu and specials. Often, customers will need to see the name of a restaurant around the time before deciding what to do for dinner, and they will be inspired to dine there. By sending push notifications on promotions, discounts, and special discounts going on that day or week will allow you to tap into their decisive mind. It may sound a little devious, but if you are looking for an increase in sales, simply alerting customers about what is going on that day could be the difference between obtaining that sale or losing it to the burger joint next door.
A restaurant rewards program along with a pleasant atmosphere, awesome food, and splendid service is a value added benefit to your restaurant’s marketing strategy.