“The purpose of a business is to create a customer who creates customers.” – Shiv Singh
(Didn’t get it? Read these blog to the end, you’ll get your answer)
Customer Loyalty makes an enormous difference! Loyal customers spread positive words about your brand and help with customer retention. (Loyalty programs increase retention by 95%, Read the 1st point in customers statistics part below)
They are more likely to share a positive dining experience than new ones. Loyalty programs play an important role when it comes to winning your customers heart 🙂
See, There are different types of restaurant establishments like a food truck, fine dining, casual dining, etc, but the common thing that all are striving for is, to gain repeat purchase. Restaurant loyalty program is not a new term for the industry, people are using it before that new-edge AI-based technology.
What is a Loyalty Program?
Loyalty program is not rocket science, We all experience it in our daily life while shopping, while making online payments, while purchasing groceries.
There are Two Types of Loyalty programs (Have you used any?)
The customer loyalty program is a structured ROI-based marketing effort in which the company provides incentives like cashback or points to customers for more and more purchasing. It basically the best way to increase loyal customers.
Why Customer Loyalty Program is important for Restaurants?
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 –
The Loyalty program influences customers to come back and do more purchases 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’
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.
Important Customer Loyalty Statistics :
Restaurant Customers statistics showing the importance of loyal customers in boosting repeat guests.
1. Improving guest retention rates by 5% through a loyalty program can increase profits by 25-95% (Source)
2. 36% of customers prefer a loyalty program that offers exclusive deals and coupons. (Source)
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% (Source)
4. Your existing customers are 5 times likely to try your new menu offering. (Source)
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.
Customers love to receive Cashback (It’s Proved!)
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 the 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 cashback 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.
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 strategy you can go for.
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