Did you know that an increase in loyalty by 5% can boost a restaurant’s profit by 25% to 95%? Well, the stats are enough to justify the importance of restaurant loyalty programs. The integrated loyalty solutions can largely encourage repeat guest visits, drive increased revenue, and directly influence the bottom line. Let us find out how building loyalty programs can improve the bottom line.
How does a restaurant customer loyalty program work?
Well, a loyalty program for a restaurant incentivizes the guests to make repeat visits to the restaurant with rewards like discounts, points, and special offers. These programs help in using the data to create customized offers and build personal relationships with customers. Integrating different technologies make it easier to create loyalty programs that boost the bottom line and allow tracking success of the efforts. Here is how the loyalty program works:
- Asking the guests to sign up for the loyalty program at the restaurant or digitally using a website or app
- Each time a guest orders food online or visits a restaurant, he/she would earn some points
- These points lead to rewards like discounted or free menu items that entice the guests to visit the restaurant more often
- Guests continue to receive personalized offers
- These offers increase the likelihood of the customers redeeming the offers and rewards, and returning to the restaurant again to earn more and spend more
While acquiring new customers is up to five times more expensive than retaining the ones you have, it becomes essential to work on loyalty programs and keep the guests coming back and spending more at any restaurant. Now that you know what can be done to retain existing customers and how loyalty programs can improve the bottom line, it is time to leverage these techniques.
In case you require any assistance throughout the journey of retaining existing customers and building a loyal customer base, feel free to connect with the ERC team. We are a team of seasoned experts, having sound knowledge related to the restaurant industry. For more details, visit our website today i.e., https://erestaurantconsulting.ca/, or you can also discuss your queries and requirements with our team at 1-647-209-4153, and let our experts help you with your restaurant.