How Restaurant Loyalty Programs Can Improve Your Business
Data from Bain & Company suggest that a 5% increase in customer retention can increase profitability by 75%. So the obvious question is, what are you doing to increase customer loyalty and retention?
With 70% of restaurants not offering some type of loyalty program. And 57% of consumers saying they are more likely to dine in a place that offers one. Chances are your restaurant is missing out on a big opportunity.
Believe me, I know you already have a lot on your plate. With Covid-19, shutdowns, and now reopening. And adding a loyalty program is the last thing you want to think about right now. But having the right loyalty program can improve your business. It can help you turn satisfied guests into loyal guests. And as any restaurateur knows, it's cheaper to keep guests than it is to generate new ones.
If implementing a new loyalty program brings even just one or two new regulars. It will have paid for itself because of the lifetime value of those customers. But a loyalty program, when done right, will do much more than that.
The ultimate goal of a restaurant loyalty program is to learn more about your customers. When a guest enrolls, you are able to capture information about them. Information that you might not otherwise have. Imagine what you could do if you knew the email addresses or phone numbers of all your guests. Or birthdays and anniversaries. With this information you could send offers via text message and email for next to nothing.
The more information you have about your customers. The better you can build out your restaurant marketing strategies.
Restaurant Loyalty Programs by The Numbers.
- 95% of consumers want to engage with their restaurants loyalty program using emerging technology. Tech like chatbots, AI, VR, and smart devices. (Bond)
- 75% of consumers say they would engage more with loyalty programs they can access from a smartphone. (Code Broker)
- 67% of Millennials and 56% of Gen Z are influenced by a restaurant’s content or deals
- 82% of loyalty programs for restaurants get a referral of at least one person, according to this study. That means if you have 100 loyalty customers, 82 more guests walk in the door.
- 45% of diners will select a restaurant if they belong to its loyalty program (Hospitality Technology)
The benefit of a restaurant reward program (with ideas)
Still not convinced? One major benefit to having a restaurant loyalty program is that you will have accurate tracking, measurement, and accountability for your restaurant marketing strategies.
At LMT we call this the "TAKEOVER Mindset". Every dollar must be tracked and the return must be measured. Because what gets measured gets managed.
The best way to manage your marketing dollar is by having a restaurant database. The best loyalty programs for restaurants allow you to do this. Without a database it's next to impossible to build a relationship with your guests. Imagine trying to build a relationship with someone, without the ability to call, text, or email them.
Once you've built that relationship with your guests. And have a database of thousands for your restaurant. A successful restaurant loyalty program will help you improve upon that relationship. Sending a coupon for someones birthday is a great idea. It creates a lasting impression on your guests. And it's easy to automate. Plus, most people don't celebrate their birthday alone so that's extra revenue.
But people want to feel like they're an "insider". Like they're part of a small club. So celebrating your restaurants anniversary with loyalty card holders. Or testing new menu items before they go public is another great way to grow your relationship. This goes beyond rewards. This is offering a VIP experience - all thanks to your loyalty program.
The TAKEOVER Loyalty program.
We are a data driven agency here at LMT. Which means we listen to the numbers. If the numbers say 95% of customers want to interact with chatbots and AI. Then our loyalty program will have that. Customers can sign up and download their loyalty card inside a chatbot. And if there are any problems, they are guided with AI.
Customers can order for pickup and delivery inside the AI bot. And use their loyalty card to redeem points.
If 75% of customers want to access their loyalty cards from their smart phones. Then our system will have that too. Our system allows customers to store their card on their wallet on their phone. Whether that's an iPhone or android - doesn't matter. It stays on their phone.
From their phone customers can view their reward points, offers, etc.
To demo our takeover system and see how our AI bots can increase revenue for your restaurant. Schedule a one-on-one strategy session with us down below.
On this call, we will dive deep into how we can help your business take advantage of this big opportunity that most restaurant's are ignoring. This call is FREE of charge and lasts anywhere between 15-30 minutes. There is no obligation to work with us so schedule your free call today.