I don’t often like to start with psychology, but why not? When it comes to the best rewards programs for restaurants, let’s admit that it can be an issue of self-esteem, with the client so happy with a loyalty scheme managed by a restaurant that would give her or him the impression that they are more “special” than others. Yes, they are granted special discounts, info., news updates, promotions and coupons that the “unlucky” others who have not joined the program may never enjoy. Ego often matters!
However, moving ahead to the bread and butter of business, it’s fair to remember that a restaurant customer loyalty system is also likely to move the sales needle. Rules of the sales game are currently changing with restaurants able at present to send messages to their frequent clients reminding them of the updated menu and special dishes ─ on the screens of their smart phones.
And because time is an important factor in hospitality marketing, customer loyalty programs usually make it easier for restaurants to send promotions and coupons to their customers later in the afternoon around the time at which they usually decide where to go for dinner. So, you reach him at the right time and push your sales upwards.
However, what about the balance of costs versus revenues? It’s definitely inexpensive for a restaurant to use a loyalty program for sending low-cost but highly relevant and directed messages of, for example, coupons to clients who not only make a purchase but repeat purchases. It certainly is a proven return on your investment in the program.
With customer loyalty programs, the restaurant, however, can target certain geographic areas and focus on the diners who have already shown sort of interest in their menu items, thus sending more personalized messages, which would turn customers into permanent customers.
So, loyalty programs not only boost the sales of your restaurant and increase the return on your investment, but they can also put your business on top ─ to remain there.