How To Create An Effective Loyalty Program For Your Restaurant Business

Holding on to existing customers is much easier thanback in. This doesn't necessarily have to be a
getting new customers in the door. While it is alwaysdiscount, though it often is at many restaurants.
important to keep expanding your customer baseBeing more creative, however, can often pay even
and bringing in new diners, most restaurant ownersbigger dividends. For example, an invitation to a
concentrate too much energy on, and spend too bigspecial menu night, a themed event night or a special
a portion of their marketing on new customers atdessert or other treat event is going to draw
the expense of not retaining their existing customers.interest without requiring a discount or other profit
With a good loyalty program in place, this doesn'treducing measures.
have to be the case.Another option is to simply mail and info piece or
A loyalty program is applicable for all levels ofnewsletter that keeps the brand and location in the
restaurant service and style. Many restaurant ownerscustomer's mind without directly calling them to come
who run more upscale establishments think thatin or offering a reward. The best loyalty program is a
loyalty programs are only for bargain hunters andmix of these elements- rewards, special invitations
fast food type restaurants, but this isn't the case.and news. It should be delivered not more than once
A well planned and appropriately themed loyaltya week and usually only every other or once a
marketing plan will work for any establishment andmonth to be most effective. If it comes to often,
can bring a tremendous return on investment inpeople feel it is intrusive and then they opt out of
terms of increasing both frequency of visits and pergetting anything at all.
ticket averages.The most cost effective loyalty program is run using
The loyalty program should be very easy to join. Thisan email program where customers can get deliveries
means customers should have to give a minimum ofinstantly and can print out coupons or other rewards,
information, and it should be very easy to contribute.and can also get links to the restaurant website or
Often this means a card to sign up is presented withother promotions. More expensive, though in some
the check at the end of the meal. It shouldn't ask forinstances more effective is using a postcard or other
more than a name and an email address or mailingdirect mail piece to reach the customers. Again, a mix
address.is often the best compromise, such as using email
To increase the conversion rate- that is the numbermost of the time, but sending a postcard at
of people who sign up, the reward should be invitingChristmas or on a customer's birthday.
enough. The most compelling reward is an instantNo matter how you do it, if you want to have the
discount on the current check, or an instant rewardmost successful and highest grossing restaurant
such a comped dessert or beverage.possible, you will make a loyalty program a key part
To be effective the follow up must be regular andof your overall restaurant marketing strategy.
offer the customers a compelling reason to come