Offering a “buy 9, get the 10th free” card universally to customers rarely builds the personalized relationships needed to drive specific behavior and stand out amid a saturated loyalty market. These days, customers want tailored rewards. As loyalty members, they want to feel like they’re part of a “special program designed just for them”.
As a restaurant owner, you want a program that’s easy to track. This includes being able to monitor your ROI on loyalty strategies taken and also being able to track customer behavior to get insights on how to tailor your programming and messaging.
Generally, this comes down to partnering with a professional platform that specializes in these type of programs.
But this doesn’t mean there isn’t still a place for classic freebies in this new digitally driven landscape. Everyone loves a good giveaway. It’s just about making those rewards relevant to each customer.
HERE ARE SIX DIFFERENT SCENARIOS ANY RESTAURANT OPERATOR COULD CONSIDER IMPLEMENTING:
To illustrate this point, let's look at a hypothetical scenario. Imagine you run a taco shop where 80% of your customers purchase a soda with every order. Sodas are relatively inexpensive, making them a great candidate for a freebie. Plus, your customer data shows that this reward is something your average customer will appreciate, increasing its value in driving people to your shop.
One way to reward loyalty members is to offer a "buy 9 sodas, get the 10th free" deal. However, if you want to encourage more profitable and targeted behavior, consider offering a different deal: "Buy 9 Burgers, and on your 10th order, get a free plate of Fries or Soda." By doing so, you're encouraging customers to purchase a more expensive item in exchange for a relatively inexpensive freebie. Not only does this strategy satisfy the customer, but it also doesn't cost you a lot of money. Moreover, it gets people coming back to buy the items you really want them to buy. By carefully selecting which items to use for loyalty giveaways, you can boost customer loyalty and drive more profits for your restaurant.
As a restaurant owner, it's not uncommon to experience slower business on certain days of the week. If you're struggling to attract customers on Monday and Tuesday nights, you can leverage the power of loyalty rewards to build more traffic on your off days.
One effective way to do this is by segmenting your customer base and targeting them accordingly. By using a technology-backed loyalty program, you can collect and analyze customer data, including factors like date range, frequency of visits, and how much they spend. This enables you to create customer categories and tailor your messaging to each group.
For instance, if you have customers who typically visit your restaurant on Thursdays through Sundays, you can create a targeted campaign that offers a special reward for those who come in on Monday and Tuesday nights. This could be anything from a discounted menu item to a free appetizer.
With the right loyalty platform, you'll have the tools you need to customize your offerings and drive more visitors through the doors when you need them most. By leveraging the power of customer data and targeting your marketing efforts, you can boost your business on slower nights and keep your loyal customers coming back for more.
One of the most classic loyalty strategies today is the "We miss you" message. This strategy is effective because it reminds customers that it's been a while since their last visit, which aligns with the core mission of loyalty – to drive repeat business and stay top of mind.
To incentivize customers to return, offering a freebie or reward is generally a worthwhile tactic. However, it's crucial to execute this strategy strategically. This is where customer segmentation comes into play. To make these campaigns more impactful, you should tailor them based on customer frequency.
For example, if you execute a blanket "miss you" campaign among all customers who haven't visited in the past 90 days, you might miss out on key opportunities. If a customer typically visits once a month, you may have already lost them after 90 days. Conversely, if a customer only visits once a year and you're sending them an email after 90 days, it's not likely to drive actual results.
To avoid these pitfalls, it's important to segment your customer base and target each group with a tailored message. For instance, you could send a "We miss you" message to customers who typically visit once a month after 30 days of no activity, while customers who visit once a year could receive a similar message after six months of inactivity. By using data-driven insights to personalize your campaigns, you'll be more likely to drive actual results and win back lapsed customers.
Your loyalty members are typically your most loyal and supportive customers. They're the ones who frequently recommend your restaurant to their friends, visit often, and help you grow your business. A great way to show your appreciation for their support is to reward them on special occasions like birthdays or anniversaries.
When it comes to creating these rewards, it's important to make them brand-specific and personalized. Some examples of effective rewards include giving away a free drink or dessert or creating an experience, such as a seat at the chef's table. These celebratory incentives can help make customers feel more connected to your brand and create memories that may drive them to choose your restaurant for future special occasions.
You can even offer incentives to celebrate customers joining your loyalty program. By doing so, you're saying, "Let's get you into the restaurant right away to start reaping the rewards of your membership." This can help drive immediate engagement and loyalty among new customers.
Overall, rewarding your loyal customers on special occasions is an effective way to show your appreciation and strengthen your relationship with them. By offering personalized, brand-specific rewards, you can create memorable experiences that encourage continued loyalty and support.
When it comes to loyalty programs, standing out from the crowd requires a deep understanding of your brand and your customer base. To create a program that truly resonates with your audience, you need to get creative and think outside the box.
For example, high-end restaurants may choose to reserve their entire dining room for Valentine's Day exclusively for their top 5% of customers. Other establishments may offer free pool time or exclusive reservation slots as rewards for loyalty program members.
The possibilities are endless, but the key is to track customer behavior and ensure that the program offers a positive ROI. This can be achieved by asking the right questions and listening to feedback from your best customers.
Ultimately, a successful loyalty program should be tailored to the unique needs and desires of your customer base. By taking the time to truly understand your audience and get creative with your rewards, you can build strong relationships with your customers and keep them coming back for more.
That's right! Even in a coffee shop, a digital loyalty program can still be more effective and efficient than a paper punch card system. By using a swipe card or another digital method, businesses can easily track the effectiveness of their loyalty program and analyze customer behavior to make data-driven decisions.
This allows for greater control over the program and a better understanding of its ROI. Plus, customers are more likely to appreciate the convenience and ease of a digital program, rather than keeping track of physical punch cards.
In conclusion, there are many different types of loyalty programs that restaurants can implement to retain customers and drive repeat business. From tiered programs to point-based systems, the key is to tailor the program to the specific needs and wants of your customer base. By leveraging technology and customer data, restaurants can create targeted campaigns and incentives that drive traffic during slower periods and incentivize customers to return.
Additionally, it's important to be creative and offer unique experiences or rewards that align with your brand and resonate with your audience. By focusing on customer experience and engagement, restaurants can build strong, long-lasting relationships with their customers and ultimately drive success for their business.
Copyright: Post based on article from Back of House