Not every restaurant offers a loyalty program, but every restaurant should. Whether it’s a small business or a substantial one.
Rewards programs drive traffic and keep existing customers exactly where they should be — at tables in your restaurant. A properly-constructed loyalty rewards program can drive more traffic and create more loyal customers who spend more at your business.
But why is this? Isn’t implementing something like a loyalty program costly and ineffective? And do we need technical knowledge or hire a developer to build an app if we decide to take the digital route?
The truth may actually surprise you.
Common Concerns (and Solutions) Around Reward Programs
We get that there are some concerns surrounding implementing a whole new rewards system for one’s restaurant, and we’re going to put some of these concerns to rest.
It will require me to invest a lot of time.
This simply isn’t true, especially if you utilize a third-party loyalty software like Loopy Loyalty. Our solution lets you create your own digital stamp card within minutes and doesn’t take long to implement. Plus, our wonderful support team is there every step of the way in case of hiccups when you need some help getting started.
It will cost my business money to give away a reward or discount.
While it is true that you will be “giving away” merchandise in a rewards program and you pay a small recurring fee for using a solution like ours, the benefits are sure to be reaped.
Existing customers often spend 67% more than new customers. Because of this, loyalty programs can definitely end up paying for themselves in the long term. Plus, they can also bring in new customers as well.
Training my staff will be tedious.
This doesn’t have to be the case, even if you have a large staff. Rewards programs are not meant to be ultra-complicated, for the customer or your staff. Loopy Loyalty was specifically tailored for user-friendliness and ease of training for staff.
The Benefits of a Reward Program
There are so many benefits when it comes to customer loyalty programs:
- Customer retention. The biggest motive behind implementing a rewards program is to retain existing customers by “rewarding” them for repeatedly dining at your restaurant. Loyalty programs are tools that motivate customers to keep coming back with the promise of free or discounted items or services. When you look at the statistics, they simply don’t lie. Annex Cloud’s customer loyalty statistics showed that loyalty programs increased their overall revenue by 5–10%, loyalty members spent 5–20% than non-members on average, and loyalty program members bought 5–20% more frequently than non-members. Talk about proof!
- Implementing a loyalty program often involves data storage, which means your business will be able to track relevant customer data and consumer trends with ease. You can then use this data to cross-sell and up-sell and effectively mold your restaurant to be even more successful.
- You’ll be able to start shedding dead weight — that dead weight being unprofitable customers. Loyalty programs let businesses sort of “segment” their customers and discover through data which customer groups are making the restaurant the most money. Essentially, you’ll be able to retain the customers that bring in the most profit and giving them priority.
- With Loopy Loyalty, you’re able to communicate with your loyal customer base in an entirely new way by sending them push notifications and location-based messages. You’re essentially creating a direct tie to your customers meaning you’ll be able to send your regulars promotions and new product announcements. It’s an entirely new marketing channel for your restaurant!
Executing a Stellar Rewards System
One fantastic example of a well-executed rewards system has to be Swire Restaurants’ loyalty program which is powered by Loopy Loyalty.
Their rules and rewards options are as follows (please note that their prices are in Hong Kong dollars but we’re using US dollars in the example below):
General
- Stamps and rewards cannot be exchanged, refunded, replaced or redeemed for cash.
- Stamp cards are non-transferrable and cannot be combined with other cards.
- Stamp cards and vouchers cannot be used in conjunction with any other promotions.
- Swire Properties Hotel Management Limited reserves the right of final decisions in case of any disputes.
PUBLIC Coffee Rewards
- Earn 1 stamp for every coffee purchased by presenting the Mobile Coffee Rewards card upon settling the bill. Please note that no stamp will be issued after payment.
- Collect 9 stamps to receive a complimentary regular sized coffee upon your next visit.
- This card can only be used at PUBLIC Deli, Ground PUBLIC, and REPUBLIC.
Plat du Jour Coffee Rewards
- Earn 1 stamp for every coffee purchased by presenting the Mobile Coffee Rewards card upon settling the bill. Please note that no stamp will be issued after payment.
- Collect 9 stamps to receive a complimentary regular sized coffee upon your next visit.
- This card can only be used at the food truck at Plat du Jour Pacific Place.
Swire Restaurants Dining Rewards
- Earn 1 stamp for every $15 spent by presenting the Mobile Dining Rewards card upon settling the bill. Please note that no stamp will be issued after payment.
- Receive rewards upon collecting 5, 10, 20, and 30 stamps.
- This card can only be used at Mr & Mrs Fox, The Continental, Plat du Jour Pacific Place & Quarry Bay, and PUBLIC Restaurant. Dine-in only.
Rewards
- Collect 5 stamps and enjoy $10 off the bill on your next visit.
- Collect 10 stamps and enjoy $20 off the bill on your next visit.
- Collect 20 stamps and enjoy $30 off the bill on your next visit.
- Collect 30 stamps and enjoy $50 off the bill on your next visit.
- Table size is limited to a maximum of 8 guests.
- Maximum vouchers may be used for up to 50% of the total bill and all vouchers have to belong to one single card.
This is a good example to model your own restaurant rewards program after.
How was our guide to customer loyalty programs? Are you convinced that a loyalty program like this can be great for your restaurant? We want to hear what you think in the comments below.
