Best Practices and up to the minute news on Customer Experience Management and Service Excellence
Best Practices and up to the minute news on Customer Experience Management and Service Excellence
Loyal guests generate ten times more revenue in their lifetime than new customers, according to hospitality technology provider Five Stars. That’s just one reason why your loyalty program must be designed to turn new guests into returning guests.
“Since it can be costly to acquire new customers, retaining customers is a crucial way to maximize profitability,” says restaurant software provider Toast. “On top of that, 20% of your customers account for 80% of your total revenue, so it’s important to delight these top customers and keep them coming back.”
If your restaurant doesn’t offer a loyalty program, you’re missing out on additional revenue from repeat business. Read on for eight great restaurant loyalty program ideas.
“A welcome drink for new loyalty customers is a great way to encourage first time sign-ups,” says Toast. “Once these customers are within your loyalty network, they can work to unlock point-driven rewards.”
With this loyalty program, guests earn points based on how much they spend on each visit and how many times they visit. When they reach a set amount of points, they’ll receive a discount. For example, a guest who visits your restaurant four times could receive a 10% discount on the fifth visit. Or you might offer a 20% or higher discount to customers after the eighth visit.
Encourage guests to return to your restaurant until they earn enough points for a free appetizer. Not only will this motivate them to visit your restaurant regularly, they may become such fans of your appetizer selection that they order an appetizer every time they visit.
Toast recommends offering free delivery on orders over a set amount ($20, for example) for rewards program members. The savings adds up over time and can prompt guests to more fully explore your menu on their way to becoming loyal customers.
Offer loyalty program members the option of redeeming points for merchandise such as t-shirts, hoodies, a tote bag, hat or other items with your brand name. They’ll appreciate the cool stuff, which serves as a constant reminder to visit your restaurant.
Offer loyalty program members incentive for referring their friends to your restaurant. Maybe they’ll get 20 points for each new guest they refer. Or the member’s reward could be a free drink, appetizer or dessert.
Motivate guests to celebrate their birthday at your restaurant by offering a birthday discount or free meal to loyalty program members who have a birthday that month, recommends hospitality technology provider orders.co. Send an email or text ahead of the guest’s birthday to give them a heads up.
Rewards members may choose your restaurant for their big birthday celebration with friends who could also become loyal customers.
“With experiential rewards, customers can earn rewards and then redeem them for experiences such as tickets to a concert or a day at the spa,” says order.co. “You can create such rewards during holidays or events like Valentine’s Day, where you know people will be looking for unique experiences.”
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