How Restaurant Loyalty Program Skyrockets Your Sales

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In today’s highly competitive restaurant industry, repeat customers are crucial to the success and sustainability of your business.

With the rise of digital technologies, creating and implementing a restaurant loyalty program to reward customers, build brand loyalty, and increase sales has become more accessible.

For example, punch card apps such as Loopy Loyalty help you create digital stamp cards and reward points to loyalty members. Your customers can store and use these loyalty punch cards with Apple Wallet and Google Wallet whenever they are at your restaurant to collect loyalty points and exchange them for special deals and offers.

Start your free trial today to fully understand how Loopy Loyalty boosts your rewards program.

In this blog post, we’ll take a closer look at the importance of a digital restaurant loyalty program, explain how restaurant loyalty programs work, clarify the differences between traditional and digital loyalty programs, and discuss the benefits of implementing your customer loyalty program ideas.

We’ll also discuss what type of program is best for your restaurant and how Loopy Loyalty skyrockets your sales. Let’s start with some essential information.

The importance of customer loyalty in the restaurant industry

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Customer loyalty is critical for the survival and growth of a restaurant business. Having loyal customers who keep returning boosts your revenue and brings in new customers through word-of-mouth referrals.

Building customer loyalty requires providing an exceptional customer experience, from the food and service to the overall atmosphere.

By strengthening the relationships with your frequent customers, you can receive valuable feedback that helps you continually improve your offerings.

Investing in customer loyalty means investing in the future of your business, and implementing a restaurant loyalty program is the critical step in the process.

The crucial difference between traditional and digital customer loyalty programs

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Traditional customer loyalty programs require customers to carry paper cards and manually punch them when they visit your restaurant. This system is prone to mistakes, as customers can easily lose or forget their loyalty cards, and it requires additional administrative tasks such as manual record-keeping and card management.

On the other hand, digital loyalty programs use electronic devices to track punches and rewards and provide customers with a seamless experience.

Customers can access your punch card rewards program through their mobile devices, eliminating the need for physical cards. It makes it easier for customers to keep track of their rewards while you can track customer behavior and purchasing patterns.

Furthermore, digital loyalty programs allow real-time data tracking, enabling you to analyze and respond to customer needs quickly. It helps you make informed decisions about menu planning, promotions, and even the design of your physical locations.

What can we learn about restaurant loyalty programs from the stats?

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Many stats provide insight into the effectiveness of restaurant loyalty programs. Let’s share some of them.

• 57% of customers said they would spend more on food at a restaurant if it had a loyalty program. (FSR Magazine)
• 57% of restaurants offer rewards and loyalty programs. In comparison, 41% of consumers say loyalty programs encourage them to buy from restaurants. (Insider Intelligence)
• 47% of diners now use at least one loyalty program. (Restaurant Dive)
• 75% of table-service restaurant customers use loyalty programs, as do 60% of QSR customers. (PYMNTS)
• With a membership rate of 54.7%, millennials (24–39) are the largest users, followed by 32–41-year-olds (54.5%). More than 48% of Generation X (40–55) are members of restaurant industry loyalty programs. (R3 Marketing)

In conclusion, the state of restaurant loyalty programs is strong, with many customers participating in loyalty programs. The statistics clearly indicate that investing in a customer loyalty program is essential for the success of restaurants in the long term.

The benefits of implementing a restaurant loyalty program

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Implementing a restaurant loyalty program can bring numerous benefits to your business. Let’s discuss the most important ones.

Differentiating from competitors

Customers are more likely to choose a restaurant that rewards them for their loyalty than one that doesn’t. Your effective loyalty program will become the unique selling point that allows you to stand out with your program benefits, differentiate yourself from other restaurants, and make your customers happy.

Reduced marketing and acquisition costs

A reward program can also help reduce your marketing and acquisition costs. By retaining existing customers, you can cut down on the money you need to attract new customers.

Successful restaurant loyalty programs offer a wealth of data about your customers’ purchasing behavior, allowing you to craft marketing campaigns that are highly targeted and save your advertising budget.

Improved menu planning and forecasting

You can get valuable insights into the most popular menu items by tracking your customer purchases, helping you make better decisions about what to serve and when. It increases efficiency and reduces food waste, improving your bottom line.

Increased repeat business and higher average transaction value

When customers feel valued and appreciated, they are more likely to return to your restaurant.

Loyalty program members spend more money with each transaction. They feel invested in your restaurant and are looking for ways to get bonus points and maximize their rewards. As a result, you can see a noticeable increase in the average transaction value of your customers.

It helps you create a more sustainable business and better manage your cash flow and future revenue.

Building a solid reputation and positive word-of-mouth

Top loyalty program ideas and optimized rewards structure can also help you build a solid reputation and positive word-of-mouth.

By treating your customers well and rewarding their loyalty for every dollar spent, you can create an army of satisfied customers who will spread the word about your restaurant to their friends and family.

Positive word-of-mouth is one of the most effective forms of marketing, and it’s free!

Gathering valuable customer data and feedback

With rewards programs, you can get valuable insights into what your customers like and dislike about your restaurant.

You can use customer feedback to address areas needing improvement, such as service speed, or to add new services or features that your customers have requested.

You might also find that a specific type of reward or a special offer is particularly appealing to your customers and use this information to create future promotions.

What is the best type of restaurant loyalty program?

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There is no one-size-fits-all answer to this question, as the best type of restaurant loyalty program will depend on your specific business goals and customer demographics.

Some common restaurant loyalty programs include

1. Points-based programs: Customers earn points for every purchase they make, which they can later redeem for exclusive rewards such as discounts, free menu items, or special promotions.
2. Tier-based programs: Customers move up levels or tiers based on spending, with each level offering additional rewards and benefits.
3. Punch card programs: Customers receive a digital punch card they can stamp or mark each time they purchase. Once they have received a specific number of stamps or marks, they receive free rewards.
4. Mobile-based programs: Customers use a mobile app to track their rewards, earning points or benefits such as free meals or free dessert for their purchases and other actions.

Each of these programs has its advantages and disadvantages, and it is up to you to determine which type will be the most effective for your restaurant.

However, besides choosing the best loyalty program for your restaurant, you must consider the right customer loyalty platform to create, manage, and promote your restaurant loyalty cards.

Selecting the best software for your customer loyalty program

Let’s dive into the must-have features a customer loyalty platform needs to include to help you launch your restaurant loyalty program quickly and kickstart rewarding your loyal customers in minutes rather than months.

Compatibility with your current systems

You need to choose a loyalty platform that integrates well with your current systems, such as your POS system, CRM platform, and marketing automation software. It will help you ensure seamless and efficient operations and allow you to take full advantage of your loyalty program.

Customization options

The ability to customize your loyalty program to meet your specific needs and goals is crucial. Look for a loyalty platform that allows you to define custom reward levels, specify which menu items are eligible for rewards, and set up custom promotions and special offers.

Reporting and analytics

Choose a loyalty platform that provides robust reporting and analytics capabilities to measure the success of your loyalty program and make data-driven decisions about future marketing strategies. Look for a platform that provides real-time data and insights about customer engagement, spending habits, and program performance.

User-friendliness

A user-friendly loyalty platform will ensure your staff can easily manage the program and your customers can easily participate. Look for software with an intuitive interface, clear instructions, and minimal training requirements.

Customer support

Evaluate if the loyalty platform provides excellent customer support, including live chat, email, and phone. It will help you get the assistance you need if you encounter any issues or have questions.

Scalability

As your business grows and evolves, you need a loyalty platform that can scale to meet your changing needs. Find a platform to accommodate increasing customers, new menu items, and new reward levels.

Price and value

Finally, evaluate the price and value of the loyalty platform you are considering. Ensure you get a good return on your investment with a platform that offers the features and capabilities you need at a price that fits your budget.

As you can see, many factors can affect your decision. To save time and effort, we recommend using Loopy Loyalty as the customer loyalty software that ticks all the boxes above.

Let’s explain what it is and how to use it for your restaurant loyalty program.

Setting up and launching your loyalty program with Loopy Loyalty

Loopy Loyalty is a customer loyalty software designed to simplify creating and managing a restaurant loyalty program. With our platform, you can quickly launch your new loyalty program and start issuing promotional rewards to your loyal customers.

Loopy Loyalty features virtual punch cards customers can store on Apple or Google Wallet, providing a 100% mobile experience with no additional apps to install or maintain.

You can create beautiful loyalty punch cards without design or coding skills and set up single and multi-reward programs.

You can use the Loopy Loyalty Digital Stamper app for iOS or Android to issue stamps and rewards with a single scan or switch to our online stamper tool to give stamps to customers regardless of their location.

Loopy Loyalty also allows you to send targeted messages and location-based alerts to your customers.

Our platform provides insights into key metrics to help you optimize performance. You can segment customers and retarget them with special deals based on their behavior and track the ROI of your digital loyalty program.

Let us show you how to start your restaurant loyalty program in eight easy steps.

1. Choose a loyalty punch card template

With Loopy Loyalty, you can select from various ready-made templates or create your own unique design from scratch. All it takes is one click to start the card design view.

2. Design your card

Use the design tools within Loopy Loyalty to customize the look and feel of your loyalty card. You can add your logo, choose colors, and even upload custom images.

Whether you want to match your brand’s look and feel or create something entirely new, the possibilities are endless. Get creative, have fun, and design the perfect punch card that represents your restaurant and appeals to your customers.

3. Add essential details

Ensure to include all the crucial details, such as your restaurant’s phone number, link to your official website, social media pages, or email address. You can also set the card expiration date.

4. Add your business location

Enter your business address and define a lock screen message that will appear on customers’ phones when passing by near your restaurant.

5. Include terms and conditions

Explain how your loyalty program works, including how customers can earn and redeem rewards and other important information.

6. Setup data collection

Choose what information you want to collect from your customers, such as email addresses, phone numbers, and birthdates. You can also ask customers if they allow you to use their data for marketing purposes.

It will let you send them personalized promotions and gather valuable insights about your customer base.

7. Save and preview

To evaluate your digital stamp cards, you can send yourself an SMS or scan the QR code with your phone. If you don’t like what you see, you can always go back to the design editor and fix all issues you noticed during testing.

8. Activate your digital punch card

When you’re completely satisfied, you can activate your card. It is important to note that after activation, you will be able to change your card design details except for the following:

• The type of reward (single or multi)
• The number of stamps required to get the reward
• Position of rewards on multi-reward cards
• Expiry date
• Unique enrolment fields

After this step, you can start promoting your restaurant loyalty program and reap the benefits of having a loyal customer base.

Promoting your restaurant loyalty program with Loopy Loyalty

Promoting your restaurant loyalty program is crucial for its success. Whether you’re offering online ordering or dining in, there are various ways to promote your program with Loopy Loyalty. Here are some examples.

Using the official website

Your restaurant’s official website is the first place to promote your loyalty program. You can add a web page explaining how to join the program, displaying the terms and conditions, loyalty rewards, and a link to your digital stamp card customers can save to their Apple or Google Wallet.

Email and social media campaigns

You can use emails and social media platforms to reach your customers and promote your loyalty program effectively. You can send newsletters, create ads, describe your loyalty program, and include the card URL so the customers can quickly sign up and save your loyalty punch card on their mobile devices.

Restaurant marketing materials

You can download the QR code and use it on any printed material, such as posters, flyers, table tents, or menu inserts, to promote your loyalty program while customers are at your restaurant. You can display these materials in prominent locations near the cash register, the entrance, or tables.

Measuring the success of your restaurant loyalty program

Loopy Loyalty helps you track the progress of your restaurant loyalty program and customer retention. You can calculate the gross and net benefits automatically. You can also see a list of all transactions and get data for each.

What’s best, you can see a list of all loyalty program members and assess a detailed customer record. It includes their profile and transaction history.

Based on your analysis, you can send a message to their lock screen, give stamps, redeem rewards or delete the customer record.

All you need to do is start your free trial to enjoy all the benefits.

Five reward ideas to boost your restaurant loyalty program

Rewards are an essential component of any loyalty program. Here are five reward ideas that can increase your success:

• Free meal or dessert with purchase
• Discounts on future visits
• Early access to special events or promotions
• Access to exclusive menu items
• Gift cards for regular purchases

Defining rewards can be a fun and creative process, especially when you have all data you need to make an informed decision. Loopy Loyalty will be your true ally along the way.

Next steps for your restaurant loyalty program

Implementing a loyalty program with Loopy Loyalty is a great way to increase customer loyalty and drive repeat business.

With our loyalty platform, creating and promoting your program, scanning customer digital stamp cards, issuing rewards, and measuring success will be a breeze.

So, if you’re ready to start building a loyal customer base, sign up for Loopy Loyalty today!