Restaurant Loyalty Programs That Help Retain Customers With Ease
Loyalty programs are nothing but rewards, discounts and special incentives offered by restaurants as a way to attract and retain customers. This is a primary initiative taken by restaurants to motivate diners to frequently make visits, leading to repeat business. With a greater number of visits, the rewards are greater too.
A restaurant must not only attract new customers but also find ways and means to retain them and motivate them to keep coming back every time they wish to dine out. That is why loyalty programs are very important for a restaurant. Many restaurants either underestimate the importance of loyalty programs or simply neglect them. The biggest reason is that even if customers support and actively engage in loyalty programs to earn points, they hardly turn up to redeem them. Therefore, the success of a restaurant loyalty program is measured by the burn rate of the loyalty points earned and not by the Earn Rate. Only when customers come back to the restaurant to redeem their reward points, the loyalty reward program can be considered successful.
Most of the time, customers do not understand the way they can benefit from loyalty programs. Due to a lack of awareness, they fail to make proper use of the loyalty programs. So, restaurants must educate diners about how to make proper use of such programs and redeem the points collected over a period of time in the right way. Restaurants can send catchy SMS and emails to customers to remind them about redeeming their points.
TWO TYPES OF LOYALTY PROGRAMS FOR RESTAURANTS
Amount Based - Customers can be rewarded points based on the amount they spend during every visit to the restaurant. For example, for every $10 spent, they can be rewarded 5 points. This kind of loyalty program is best suited for fine-dine restaurants and bars where customers tend to spend higher amounts.
Visit Based - Restaurants can offer a free drink, starter or any complimentary item on a customer’s 7th visit to the place. Simply to win that free item, customers will be motivated to make repeated visits. This type of loyalty program works well for quick-service restaurants and cafes where the frequency of people visiting is high, but their average spending is comparatively less.
Read More..https://restaurantify.com/restaurant-loyalty-programs-that-help-retain-customers-with-ease/