A loyalty program is all about creativity, how much you value the business that every new customer brings in, and what you can do to turn them into long-term loyal customers. The possibilities are infinite, here are just a few ways to include a rewards program in your restaurant business-
Loyalty Points-The simplest way to reward regular customers is to give them an incentive to keep coming back. Loyalty points do just that. Customers earn points for every dollar spent. These points can then be redeemed on their next purchase. The more loyalty points a customer has, the bigger the discount. It benefits businesses and customers equally. Customers return to redeem points, and businesses earn by smartly nudging them to spend more. Some restaurants offer additional perks for customers with high loyalty points, such as special events and priority seating. One of the many
loyalty program examples is Subway's 'My Way' initiative, launched in 2018. Customers earned four tokens for every dollar spent. Two hundred tokens equaled a $2.00 reward voucher. The more tokens, the greater the benefits.
Tiered Loyalty Programs- These go a step ahead of basic loyalty points. They give customers different levels of benefits based on their spending. For example, a restaurant might have three tiers- bronze, silver, and gold. Customers spending a certain amount within a set period qualify for a tier, with bronze being the lowest tier and gold being the highest. Each tier has its own perks, such as free appetizers or desserts, 10% off your bill, or even a free entree. Of course, the higher the tier, the better the perks. The advantage of tiered loyalty programs is that they give customers an incentive to keep spending more money at your restaurant to move up to the next level and gain better benefits. And voila, just like that a restaurant keeps its best customers happy with exciting offers, and motivates them to spend more to reach the top tier. A good example of a tiered loyalty program is the one run by the chain Chick-fil-A. The starting tier grants the customer membership; silver status is achieved after earning 1000 points in a year; then comes the red status after earning 4,000 points; and finally, signature on earning 10,000 points a year.
Network's Rewards Program- Such programs for restaurants usually offer discounts or other incentives to customers who dine at participating establishments with specific cards. The programs are often sponsored by credit card companies or other businesses that seek to promote their own products and services through affiliated businesses. Often, the programs will offer a certain percentage off the total bill when customers use their rewards card or coupon. For example, customers who spend $100 at a participating restaurant may receive $5 back in rewards. The specific details of each network's rewards program will vary, so it's important to read the terms and conditions carefully before signing up.
Experiential Rewards Program- An experiential rewards program aims to curate an atmosphere that customers enjoy to the extent that they return for more. It usually involves creating memorable events and improving the dining experience. One can do it in different ways. For example, a restaurant can partner with local businesses, like a winery, and offer a free wine tasting with the purchase of entrees on certain nights. Or one could work with a local farm-to-table purveyor and provide discounts on menu items made with fresh, seasonal ingredients. Not only will these partnerships give guests a range of experiences, but also help support other businesses in your community. Another way to add distinctiveness to your business is by giving guests the VIP treatment. This may include offering complimentary valet parking or coat check facilities, providing access to exclusive areas of the restaurant, or offering champagne or unique non-alcoholic cocktails upon arrival. There are limitless things to do. Just ensure it's something that wows your guests and leaves them wanting more.
Social Media Loyalty Program- The best part about social media loyalty programs is that they can be tailored to each restaurant's needs and goals by considering the customer's online behavior. For example, one restaurant can offer a discount for every check-in on Facebook; another can give a free appetizer for every 10th tweet about the restaurant; yet another can reward a customer for a TikTok video or an Insta reel that features the restaurant as the backdrop. Again, the possibilities are endless, and the benefits are numerous. Social media loyalty programs not only help build brand awareness and increase customer loyalty, but they also help in word-of-mouth publicity about your restaurant. And since these programs are often tied in with popular social networking sites, they can reach a large audience quickly and easily.