Restaurant Loyalty Programs | Follow this guide to build one for your restaurant.

With the restaurant industry still reeling from the effects of the COVID-19 induced lockdowns, restaurants are scrambling to find new ways to diversify and source revenue. One of the tried and tested ways to have a steady income stream is introducing a restaurant loyalty program.  Building a loyal customer is now possible for customers who order online from an online food ordering system. 

A restaurant loyalty program needs no introduction. It rewards customers for the repeated purchases they make at your establishment. Restaurant loyalty programs are a complicated product that takes a while for us to start seeing visible results. It all depends on how well the restaurant loyalty program is constructed, providing value to both the restaurant and the customer. 

Here are some of the things that good restaurant loyalty programs have in common.

A loyal group of customers using it regularly: 

When customers are enrolled in a restaurant loyalty program, they're inclined to frequent that restaurant more than other restaurants. The reason for that is simple. Customers feel that they are treated better in an environment with which they are familiar. Add to the fact that an elite set of people who have enrolled in a restaurant loyalty program contribute more than 50% of the restaurant's future revenue. These customers also have a higher than average LTV. 

Regular redemption requests

A restaurant loyalty program is deemed a success not based on the number of people who sign up for it but by the number of people who redeem their reward points. A restaurant that has implemented a successful restaurant loyalty program will receive regular redemption requests from its loyal customers. It, in turn, will create a cycle where the customer will spend more before they can redeem their points and ultimately drive revenue for the restaurant.  

An influx of new customers

One of the perks of a successful restaurant loyalty program is that it also rewards customers for referring your restaurant to other people. It introduces a new influx of customers waiting to sign up for the restaurant loyalty program to have their own experience while offering some extra points to the existing members for their part in spreading the word about the restaurant.  

Higher engagement and customer feedback 

Another factor involved in running a successful restaurant loyalty program is that these establishments have a higher engagement rate online when compared with their peers. It is that way because these restaurants take customer feedback seriously and act on it when necessary. Hence when these restaurants post something on their social media, the customers are happy enough to engage with the content the restaurant posts. 

While it might be tricky to develop a restaurant loyalty program for your restaurant, here are some pointers to note while implementing the same in your restaurant.

Reward loyalty on each visit 

Build your restaurant loyalty program in such a way that it rewards customers for every visit they make to your restaurant. Customers love to feel special and, offering them extra reward points on their initial purchase is a sure-fire way to do so. Once the customer has enrolled in the restaurant loyalty program, you can offer them the respective points based on the amount they spend each time or by the number of times they visit your restaurant. 

Educate your staff

One of the things to keep in mind when implementing a restaurant loyalty program is to educate the front-of-house (FOH) staff in detail on the benefits of what a restaurant loyalty program offers to both the customer and the restaurant. Having a dedicated representative that helps push your restaurant loyalty program to customers helps it achieve higher engagement and gain traction in the long run compared with restaurants that don't promote their programs. 

Keep the program simple

When conceiving about creating a restaurant loyalty program, try to keep things simple and not overcomplicate matters for everyone. A simple program is, first of all, is easy to use and understand by the customer. Having a loyalty program that is easy to track and redeem gives a sense of security to the customer and gives them a positive experience to return and use it again in the future. 

Have a tiered loyalty program

Another thing to keep in mind when developing a restaurant loyalty program for your restaurant is to create one with multiple tiers that offer variable rewards points to customers based on which tier they are currently on. Customers who are just getting started with their loyalty program might get lower reward points initially but, as they keep frequenting the same place, they move up the loyalty program ladder that offers them a better reward rate in the future. Higher the tier higher the reward for the customer. 

Offering customers a better experience

Some of the ways to drive up the use of your restaurant loyalty program are to offer customers something extra apart from their usual service. When a customer notices another customer that is enrolled in the restaurant loyalty program getting something extra, it drives the initial customer to sign up for the loyalty program. Here are some of the ways you can improve the experience of customers enrolled in your restaurant loyalty program. 

• Offering something complimentary - Providing customers that are in the restaurant loyalty program with a welcome drink or a complimentary dish makes them feel special.
• Preferred treatment - Preferential treatment towards customers that are enrolled in the restaurant loyalty program in the form of reserving exclusive tables in case customers decide to drop by suddenly. It is another way to make them feel special and be engaged with the loyalty program.
• Invite Only Events - Sending invites to customers for reserved and special events taking place at your restaurant is another way to better their experience and make them feel special.
• Remembering Special Days - Sending personalized messages to your customers on their special days like birthdays, anniversaries, etc., is another way to be engaged with your customer and make them feel special. Offering them a special offer inviting them to your restaurant on days like that will make them feel even more special.
• Sending reminders - Being more transparent by reminding customers about their reward points and their expiry date allows customers to make preparations ahead of time to redeem their points.

Referral program

One of the perks of a successful restaurant loyalty program is the influx of new customers. It is done by implementing a referral program within the loyalty program to help customers receive extra reward points for sending new customers into the restaurant. It allows existing customers to refer your restaurant to their friends and family and get rewarded for doing the same. 

In conclusion, implementing a restaurant loyalty program is a tried and tested way to gain a loyal group of customers. One of the most successful restaurant loyalty programs is the one implemented by the coffee giant Starbucks. 

Before implementing a restaurant loyalty program, make sure your restaurant point of sale system has a special tab dedicated to noting down customer details and tracking loyalty points. Some of the old point-of-sale systems don't have this. Switching to a cloud-based point of sale system for restaurants is the way to go where all data is stored online for our reference and one that has a separate tab for restaurant loyalty reward points for ease of access. On another note, if you have trouble managing your inventory and need a refined solution to handle it check out our ERP offering. 

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