Restaurant Referral Program – Ultimate Way to Increase your Restaurant Sales!

Restaurant Referral Program – Ultimate Way to Increase your Restaurant Sales!

Can a Food Referral program really boost Business Sales?

Well, it can make or break both…although, there are several benefits of a referral program it totally depends on the type of referral program you are having. An ideal program attracts new customers as well as encourage repeat sales.

Related Read: Importance of Repeat Customers in Restaurant

What is Referral Marketing & How does the Referral system Work?

Let me explain it with a small example which all of us experience in daily life.
Have you ever invited your friends to install apps like google pay, Swiggy, Zomato, or any other…
Most of you right? But Why? (What’s the reason)

Simply to To get Rewards, am I correct?
You referred someone’s business to your friends and family because you’re already using it and you invited because “that someone” is rewarding you for doing the same!

Have a look at the Google Pay refer a friend program, it offering 180 Rs. cash rewards when someone refers to their network and the other one download the app and make first payment through the app.
According to a study “Google pay has 67 Million Active Users in India that too Within Two Years only because they offer a cashback loyalty program that customer actually loves.

So that’s how the Referral system works. Referral marketing is a strategy to encourage loyal customers to directly refer your business to their network in order to earn rewards.
[Customer Get Rewards.
You get a new customer]

Now Let’s back to the point, Referral programs are widely used by online business but is it helpful for the offline business like restaurant industry?
Yes extremely…

one customer well taken care of could be more valuable than $10,000 worth of advertising.

As per the recent Restaurant Industry Statistics – 92% of consumers trust recommendations from friends, only 33% trust online ads – Nielsen

Restaurant referral program highly beneficial to increase sales of restaurants, it encourages loyal customers to spread the word about the business.
It’s a modern method of word of mouth marketing where people get rewarded to bring new customers.

Benefits of Restaurant referral program –

1. Generate higher lifetime value customers –

According to research by AMA, referral marketing makes higher lifetime value customers, who are more loyal and contribute higher margins per year as compared to other customers.

Loyal Customers are important for business, they act as your brand advocates and get business for you, focusing on loyal customers and encouraging them to refer will give highest benefits as well prepare the business for a long run.

Related Read: How to Gain Customer Loyalty (Step by Step Guide)

The purpose of a business is to create a customer who creates customers.” – Shiv Singh

2. Boost Customer Retention

Restaurant referral program ensures more repeat customers. If a customer already like your product offering them free dessert, or a complimentary coffee for each referral will not only increase customer loyalty but also boost your restaurant business growth.

Related Read: Restaurant Loyalty Program: Ultimate Way to Make Happier Customers

3. Generates Brand Awareness

Referral Program for Restaurants creates brand awareness, they act as business brand representatives, convert more easily, attract new customers and as discussed earlier they have a bigger customer lifetime worth than other buyers.

Referral programs are the easiest way to gain loyal customers, but referrals generally don’t happen automatically. People are busy in their lives they simply forget to tell about your business (if no one asks), the solution for this… is to have a referral system for restaurants which should be automated.

If you are using an integrated restaurant CRM Software, it has features of creating a referral program, automation, tracking referrals, which basically works as customer engagement software.

restaurant referral program_referral_system

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