Digital Restaurant Loyalty

    Why Loyalty Programs Matter

    loyalty card1

    The punch card loyalty concept still works and has for years! Restaurant Loyalty has always been the foundation of restaurant marketing programs. Restaurant Loyalty Programs build brand loyalty and drive repeat business, currently 30% of all restaurants offer some form of loyalty program. According to the National Restaurant Association, 56% of family restaurants and 69% of fine dining restaurants utilize a loyalty program.

    Why have a loyalty program? NRA research has revealed that 57% of adult consumers are more likely to visit a restaurant that offers a loyalty program! A study by the Center for Retail Management found that 12% to 15% of the most loyal customers generate 55% to 70% of sales. A Granbury Restaurant Solutions study revealed that 82% of loyalty program members refer at least one new customer. Per FiveStars, a 5% increase in customer retention can lead to a 25% to 100% increase in profit! Plus it is 6 to 7 times more expensive to acquire a new customer and current customers spend 67% more than new ones!

    Why Digital Loyalty is a Must

    My punch card program still works, why do I need a digital loyalty program? Any type of loyalty program is a plus, but the simple answer is Mobile Devices! 91% of mobile phone users have their phone within an arm’s reach 24 hours a day and 7 days a week! Consumers today use mobile devices to make dining decisions. Mobile devices are used to find restaurants, receive special offers, investigate menus, check online reviews, book reservations, share recommendations and build relationships.

    Restaurant marketing today is centered on loyalty and communicated via social media. Restaurant social media starts and many times ends with reviews. Just how important are these reviews? 89% of customers are influenced by online reviews and “one” additional star on Yelp averages a 9% revenue increase!

    Basic Customer Loyalty Principals

    • Make it Easy to Enroll
    • Make it Easy to Understand
    • Make it Easy to Participate in
    • Integrate Everything
    • Communicate Carefully
    • Offer Meaningful Rewards
    • Use the DATA

    It’s All About the DATA

    Customers usually provide initial profile information, but is it ever updated? Are you still sending anniversary specials to divorced couples? Are you sending special offers based on the initial profile or actual purchases? Are you offering the same rewards to all members? Are you fast tracking new loyalty members based on A+ member profiles?

    But, how do you keep profiles updated? By utilizing a Digital Restaurant Loyalty system that interfaces with Facebook for updated personal data and interfaces with your restaurant POS system for the actual purchases of individual members. You wouldn’t send grandpa a kid’s special offer. But, what if he takes his grandchildren out every week? Then of course you would! You won’t find that in his profile, but the kid’s menu item purchases from your restaurant POS system will give you the information you need to target the right promotion to the right guest! Its right there in the data, you just need to take advantage of it to build your business.

    Loyalty isn’t just a way of offering incentives to customers. It’s a way of understanding customers and targeting the right message to every member. The more data you retain, the more focused and on-point your marketing will be!

    Return on Investment

    A Digital Restaurant Loyalty system will grow your business and make money in the process! Substitute your numbers to determine your actual increase in profits by using this simple formula:

    $37 average check with a 30% food cost and 1 extra visit per year with just 2,000 members equals $51,800 of increased profit per year!

    For more loyalty info, use the same resources we used


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