Loyalty Program – A Backbone to Restaurant Business

venkatesan | October 23 - 2013

Will you not be pleased with a personalized letter from a restaurant which address you with your name and provide various offers available at the restaurant? Its true. But days have also changed and people have started ignoring these personalized letters and seek more valuable loyalty recognition from the restaurant as competition is very high in the market.

Study reveals that it costs seven times more to acquire a new customer than to retain an existing customer. It is also noted that loyalty program members spend 5 times more than other customers and visit the restaurant ten more times per year. Loyalty program for restaurants is one of the key for running the business successfully since repeat customers are the backbone for the business.

The success of loyalty program depends upon how it reaches the customer. Just offering a prize on customer’s 10th visit may only make the program vein. Instead if a program is announced such that customer earns points on every visit which can be used or redeemed to get gifts can keep the excitement going. It can also be value added by providing packaged-price dinner.

Referral programs can also be included such that when the customer refers his/her friends to the restaurant, they may be eligible to earn some referral income which they can use to take up a free dinner or avail gifts. Providing coupons and offer cards can always keep the customer happy and convert them into loyal customers.

Loyalty programs act like a bridge between the customer and restaurants. The complete database of the customer is made available with the restaurant such that they could be contacted at any time to inform new offers and discounts. Customer experience is essential for implementing the right loyalty program. One of the major step that has to be taken by the restaurants toward customers is to gather their feedback and adjust the loyalty program accordingly.

Today’s fashion includes social media. Loyalty program is incomplete without integration of social media such as Facebook, Twitter, etc. These media maybe useful for the restaurants to collect information like which is the favorite food, do they dine on occasion, how frequently they visit restaurant, which medium they like the restaurants to communicate with etc.

Good food and a first-rate dining experience are the most essential things that are required for success of a restaurant. Despite these, loyalty programs plays a vital role in determining the success of restaurant business by gaining repeat customers.

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