Restaurants are different types, food truck, fine dining, cafes, bakery etc, but the common thing that all are striving for is, getting repeat guest and customer loyalty. Restaurant loyalty program is not a new term for the industry, people are using it before that new-edge AI-based technology.
Loyalty programs come into existence in the 1900s where retailers began to introduce their own ways of engaging customers, now it completely different after the rise of E-commerce and digital payment infrastructure.
You’ll come to many interesting facts if you read the complete article.
Why Restaurant Should go for customer loyalty program –
As per a study by Oracle Hospitality, 52% of consumers will recommend to others the restaurants they are most loyal to. Loyalty programs also encourage customers to keep coming and purchase more.
Loyalty program Influence customer’s purchasing decision & Spending –
Loyalty program influence customers to come back and do more purchase in order to earn more rewards. It highly increases repeat customers to a restaurant on an average of 35% and likely to spend 46% more with companies that have customer loyalty programs.
Restaurant loyalty programs have a high potential in encouraging repeat customers for restaurants, Understand the process of making first-time customers to your loyal customers which usually describe as the term ‘customer journey’
Let’s understand it by this image –
The customer journey represents a set of steps a customer moves into the interaction with a business, and an ideal loyalty program should be designed according to that keep your customer move all the time.
Reward programs generate extensive customer traffic and bring growth in business revenue. Restaurant owners are using loyalty programs for customer retention and to make them a regular/ loyal customer.
Benefits of having customer reward program –
Before proceeding, let’s see important stats related to showing the importance of customer loyalty.
1. Improving guest retention rates by 5% through a loyalty program can increase profits by 25-95%
2. 36% of customers prefer a loyalty program that offers exclusive deals and coupons.
3. Easy upselling: The probability of selling to an existing customer is 60-70%, and for the new one, it’s just 5 to 20%
4. Your existing customers are 5 times likely to try your new menu offering.
Benefits of Having a Restaurant Loyalty Program
1. Increase Average order value
Bingage Cashback rewards program will help to boost AOV by encouraging additional spending with cashback.
For example – Suppose, you are giving 20% cashback on order value above 500 Rs then this would give a reason for the customer to spend more than 500 in order to get cashback.
Let’s take an example of an e-commerce company – Flipkart offers free delivery on orders above 500 right, it is a technique to increase order value of a customer by providing them with free delivery.
This provides a great return for you because it carries a high value for your customers.
2. Customer Retention
The loyalty program gives your customer “A reason to return”, For example, if I have Rs. 200 cash back at a particular cafe, before thinking for another restaurant, would go to that place where I can use the remaining cashback. Bingage wallet is a closed wallet, means the customer can only redeem wallet cash to that restaurant only.
This way loyalty programs help in customer retention in restaurant and keep the customer coming back 🙂
3. Bring new customers
A good rewards program can attract new customers in different ways. Loyal customers recommend your business to their families and close friends. They provide you with new business. Customer loyalty programs make loyal customers and these loyal customers are work as your brand ambassadors.
Here is the complete guide (infographic) How to Gain loyal customers –
74% of loyalty programs participants agree that they are likely to do business with a brand that offers a customer loyalty program. if you want to scale your restaurant business and get ahead of competitors, the loyalty program for restaurant is the best marketing strategies you can go for.
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