HomeTrendsIndustry TrendsWhat Is A Customer Loyalty Program For Restaurant?

What Is A Customer Loyalty Program For Restaurant?

In simple terms, a Customer Loyalty program is a marketing technique to recognise your customers who regularly engage or purchase from your brand and reward them with benefits. Cashback, reward points or coupons received on every purchase from a brand are some of the examples of customer loyalty programs. 

You may think that creating customer loyalty programs means incurring huge costs but that isn’t the case you can spend as little as 10% of your net profit. You can select a customer loyalty program that tailor matches your need and works on your set terms and conditions.

Studies have found that members of customer loyalty programs typically spend up to 18% more than other customers

Why is a Customer Loyalty Program Important For Your Restaurant?

Did you know it costs five times more to acquire new customers than it does to retain current customers?

And did you know existing customers are 50% more likely to try a new product of yours as well as spend 31% more than new customers?

…and you still ask us why Customer Loyalty Programs are important for your restaurant?

Well apart from this, it also helps you with the following:

1. Customer Referrals

If your existing customer is satisfied with your restaurant’s offerings they are more likely to become your loyal customers as well as your brand advocates. These customers will talk about their warm and loving experience at your restaurant and bring more customers to your restaurant. 

2. Cost Efficiency

Keeping your customers satisfied and happy with your restaurant using customer loyalty programs will actually be more cost-effective than spending on different marketing techniques to acquire new customers.

3. Customer Retention 

Customers are nowadays don’t just look for a product or service and take decisions based on its price. Of course, the price has a major influence on their decision but they also look at shared values, the appreciation for their loyalty and the overall experience with the brand.

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Common Types Of Customer Loyalty Programs You Can Try In Your Restaurant Today

1. Free Delivery on prepaid orders

If your customers are paying upfront while placing their orders then you can reward them for trusting your brand by at least providing free delivery on those products or giving them some kind of cashback or flat discount.

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2. Refer a friend cashback

When your existing customer refers their friends or family to join or sign up on your platform or place an order with your restaurant you can provide cashback or discount coupons of a certain amount to the existing customer as well as the new customer. This Customer Loyalty program is very beneficial in two ways. First, this will reward your existing customer for promoting your business and this will also help your business acquire new customers organically. If the referred friend also gets some rewards for just signing up they are more likely to experiment and order from your business. 

3. Get points on high-bill amount

Get 10 points on orders above INR 500

Reward your customers by providing them loyalty points every time they place a high-value bill with your restaurant. 

4. Sign up and add money in the wallet reward

If you have a virtual wallet service available for your business then you can promote it by rewarding customers whenever they sign up and add their money into their virtual wallets. They can use that virtual wallet money anytime and also get rewards in return.

5. Birthday & Occasion discounts

Birthday, Anniversary discounts have been the oldest trick in the books of customer loyalty programs. But does that mean they are less effective- A hell no! Flat discounts on Birthdays and Anniversaries without any minimum order or terms and conditions can go a long way to make them happy and rewarded on their special day

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Hope this helps you in understanding what is customer loyalty for your restaurant and why is it important for you. Try the above-mentioned tips and see the results in your customer behaviour.

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Fatema Rasiwala
Fatema Rasiwala
Content writer at Petpooja


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