Studies have found that members of customer loyalty program typically spend up to 18% more than other customers.
Also, your existing customers are 50% more likely to try a new product of yours as well as spend 31% more than new customers
Before we get into loyalty programs and which loyalty program is best suited for your restaurant type let’s see what exactly is a customer loyalty program?
Well, 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.
Now that we know what is a customer loyalty program let’s see which program is best suited for your restaurant type:
1. Dine-in Restaurants
If your customers love your restaurant and can take the pain to get out of their comfort zone to come and dine in, then you should definitely provide them with some extra value in return. If you have a dining restaurant you can use the following loyalty programs for better customer retention.
- Give loyalty points on the high-bill amount
Reward your customers by providing them loyalty points every time they place a high-value bill with your restaurant like getting 10 points on orders above INR 500.
- Free food item based on the placed order
Reward your customers by giving an appetizer or drinks free based on main courses that they have ordered or total bill value. Refill their drinks for free if their order value crosses INR 750 or more
2. Cloud Kitchens
As a cloud kitchen restaurant owner, you need to understand that your restaurant doesn’t have any physical verification to instantly gain your customer’s trust. Therefore, providing any rewards, cashback, points and offers is really important. Here are some tactics you can use to boost your customer retention.
- 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.
- Order from website to get 10% off on first 5 orders
This kind of loyalty program will help you cut out third party food aggregator’s commission and gain loyal customers as well. By encouraging your customers to order from your website you can also own your customer data for future campaigns. Just provide a 10% discount coupon code that they can use on the first 5 orders placed from the website.
3. Quick Restaurant Services (QSRs)
A QSR is specialized in fast food cuisines such as pizza and burgers, as well as items that can be produced in a short amount of time. Don’t let your quick services be forgotten quickly as well. Keep your customers engaged and coming, again and again, using the following loyalty programs.
- Sign up and add money in the wallet reward
QSRs usually 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.
- 5x points on 3rd order of this week
Reward your customers with 5x more points than usual if they place the 3rd order in the same week. This will not only help with customer retention but also directly boost your sales as well.
4. Ice-cream Parlor, Bakeries and Dessert shops
Ice-cream parlours, dessert shops and bakeries can easily use reward their customers on any seasonal or festive offers.
- 10% off use SUMMER2022
This will reward your customers and also encourage them to try your seasonal menu. A 10% discount can help you go a long way.
5. Evergreen Loyalty Program
By the name of it, such loyalty programs can be used by every business for its customer base.
- Birthday & Anniversary 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.
Still, think a customer loyalty program is something you can pass on? Well, you will be missing out read about it here
Hope this helps you in figuring out which loyalty program is best for your restaurant type. Do give the above-mentioned tips a try and see what works for you.
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