HomeMarketing Tips5 Signs Your Restaurant Loyalty Program Might Not Be Effective

5 Signs Your Restaurant Loyalty Program Might Not Be Effective

Loyal customers are the lifeblood of any business. And for a competitive business like retail F&B, winning customer loyalty is the biggest task and loyal customers are the most valuable asset. And to get from this pool of loyal customer base, a thoughtfully designed loyalty program is the ideal way to go! 

A loyalty program is a marketing technique to recognize the customers who regularly engage or purchase from your business and reward them with benefits. Here are some common examples for you!

  • Birthday and anniversary discounts
  • Free delivery on your restaurant website’s prepaid orders
  • Loyalty card offers like giving a free doughnut after purchasing ten doughnuts. 
  • Getting loyalty points on a higher bill amount. Customers can then redeem the points to get something from your menu.  
Are enough people redeeming the benefits of your loyalty program? If not, it's probably not working. Know more.
Picture courtesy: Pinterest

Why Have a Loyalty Program?

A customer loyalty program offers multiple benefits

  • Enticing customers to keep coming back to you 
  • Customers turning into your brand advocates 
  • Low-cost and easy marketing strategy
  • Increasing customer retention

How Do You Know If a Loyalty Program Is Not Working?

Once you start a loyalty program in your restaurant, you must regularly measure its effectiveness. Ask yourself these questions to see how your program is doing.

1. Your Customers Don’t Know About it

You are running a loyalty program, but there is no engagement; what is the point?

Checking the participation rate of your current program is crucial. The participation rate is the total number of customers joining the program against the total number of customers in your restaurant. 

If the participation rate is low, maybe enough people don’t know about it and you need to work on marketing it well. Or perhaps it is difficult to grasp how it works. Understand the reason for such low participation and encourage more people to participate.

Petpooja Tip: Your front-of-desk customer service staff should be well-versed in the program to tell customers about it. 

2. There is Less Redeeming of Offers

Enough customers participate but do not redeem the rewards in the end; what’s wrong?

Once you enrol customers in your loyalty program, you must track the number of people participating in the program and redeem the benefits. If more and more people redeem the rewards, it indicates a growing loyal customer base and a higher retention rate. 

If your customers are not redeeming the awards, it is time for you to focus on the structure and communication of the loyalty program. It is also possible that your third-party loyalty partner is unable to provide the service. Or maybe the programme is having some issues connecting and redirecting the customers to the right place. These technical issues are quite common and can be fixed easily!

RECOMMENDED READ  How to Start Online Ordering for your Restaurant?

It can be tricky to pick the right loyalty program; read our blog by clicking here to know which program suits you the best. 

Know if your loyalty program is not serving its purpose.

3. Your Program is Complicated to Understand

Are your rewards easy to redeem or worth the process of redeeming them?

If the process of redeeming the reward is highly complicated, or if the customers have to make massive purchases for a small token discount, they will probably not go for it. 

Your rewards need to hold some value for the customers for them to be successful. If the redeeming process is complicated, or the rewards are too small or invaluable, your program will cost you existing and potential customers instead of winning them. 

4. You Program is not Customer Centric

Are your customers happy with the loyalty program you are offering?

You need to design a program that fits your customer base carefully. Instead of picking just anyone’s loyalty program, thoroughly study your potential customers and customize your program as per their needs. For this, you need to be well aware of your customers’ ordering patterns and your own menu. Your loyalty programmes are the outcome of your business’ position.

Petpooja TIP: Offer loyalty points or discount offers on group orders. You can also give referral-based discounts to your loyal customers and their friends or family.

5. Your Revenues Are Stagnant

How has your loyalty program impacted the overall restaurant numbers?

Any and all your marketing efforts are aimed at increasing your ROI at the end of the day, so if your current program is not giving you fruitful results, it is not working out for you. Try to understand the reason for such a loss, and work on the loopholes to increase your revenue ultimately. 

Your program at the end of the day should also meet the needs of your business and generate profits. If you are not optimising the data provided by your POS CRM tools and reports then you are not only hindering the revenue of your business but also missing out on rewarding your loyal customers.

Is your loyalty program serving its purpose?
A complex and lengthened program not only costs you customers but also costs your brand value. Here are some ideas for a successful program. 

A good loyalty program in your restaurant can be game-changing for you. However, it is critical to carefully plan and measure its success rate to reap high benefits. If you think your current program is not working, modify it depending on your customer demands and restaurant conditions.

Petpooja’s POS software also provides its loyalty program for its onboarded restaurants. The best feature of Petpooja Loyalty is that it’s highly customizable based on your exact needs. 

Hope this blog helps you. Follow us on Instagram and subscribe to our newsletter for regular restaurant-related updates.

Abeera Dubey
Abeera Dubey
Abeera is a freelance content writer at Petpooja.


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