The Why & How of Choosing the Right Restaurant Loyalty ProgramConsumers increasingly use mobile devices to make dining decisions. Offering a run of the mill paper loyalty program won’t cut it anymore.

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Thousands of independent and franchise restaurants offer loyalty programs, and the trend is not new. Currently, about 30% of all restaurants offer some form of a loyalty program.

According to the National Restaurant Association, 56% of family restaurants and 69% of fine dining establishments have detected increases in loyalty-program participation. The research also revealed that 57% of adult consumers are more likely to visit restaurants that offer reward programs.

Loyalty programs are nothing new, but they’re here to stay.

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This means that you can’t offer a run of the mill loyalty program anymore, it has to have some digital upgrades to keep up with your increasingly tech savvy customers.

A modern digital loyalty program can help.

However, consumers increasingly use mobile devices to make dining decisions, share restaurant recommendations, post Instagram photos of their food, etc.

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• Understanding customer preferences

• Creating custom rewards for each customer

• Increasing spending during visits

• Promoting specials with same-day efficiency

• Providing benefits that a competitor can’t

offer

• Helping to monitor advertising responses

• Reinforcing preferred customer behavior

• Generating business during slow periods

• Encouraging customers to share restaurant

recommendations

• Providing a forum for customer suggestions

and complaints

• Displaying personal details about customers

to facilitate emotional connections

• Testing promotional offers and new menu

items

• Making rewards hassle-free

The list of benefits is pretty long.

To not bore you to tears, let’s dive into just a few.IF YOU WANT TO DIVE INTO ALL OF THESE,FEEL FREE TO CHAT WITH ONE OF OUR LOYALTY CONSULTANTS! (415) 231-3152

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One.Drive same-day sales

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Restaurant loyalty programs and mobile communications provide an unparalleled benefit for restaurant management—filling seats during slack times. Mobile marketing allows managers to promote daily specials through rewards programs, offer discounts for early

diners, promote signature drink specials if legally allowed, and encourage breakfast or lunch guests to return for dinner service.

Research shows that 91% of adults keep their cellphones close 24/7 and that most people look at their text

Every business has sales slumps, and filling the slow periods in restaurants is especially crucial for staying profitable.

messages. Restaurants can remind customers of specials and events, offer discounts on slow-moving items at the restaurant, encourage dessert and takeout sales, and achieve other restaurant objectives through well-designed restaurant loyalty programs.

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Two. Celebrates birthdays for fun and profit

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People spend more money on birthdays, and encouraging people to celebrate at a given restaurant increases business, encourages larger dining parties, creates goodwill and boosts repeat business.

Recognizing customers’ birthdays impresses people and builds loyalty for all businesses, and restaurants gain additional benefits from birthdays.

The National Restaurant Association states that 70 percent of people visit restaurants to celebrate birthdays. Loyalty programs inform management and staff when customers have birthdays, and a little recognition for the birthday guy or gal generates powerful PR and goodwill.

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Three. Offers unique marketing benefits

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According to research from FohBoh.com, loyalty programs are more successful than other forms of advertising because they identify people who are already receptive to the message.

Repeat customers spend 33% more new customers and refer their favorite restaurants to friends and families at a 107% rate. Advertising costs about six times as much to attract new customers as it does to keep established guests returning regularly.

Repeat customers are a lot easier to persuade with marketing materials than strangers.

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Four. Consolidates social media and promotions

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Rewards programs can integrate well with social media promotions, and restaurants can promote their foods, culinary philosophy, and specials in coordinated campaigns across multiple platforms and media outlets.

Drive more customers to your website or brick-and-mortar locations by promoting loyalty rewards, creating fun games,

encouraging customers to share reviews, and inviting new guests to join the reward program.

The right loyalty program (cough cough FiveStars cough) can integrate with your POS, and at the same time, can connect with popular social sites like Facebook and allow customers to check-in by just scanning their loyalty card.

Marketing is so much easier when it’s all in one program.

This can create great guest experiences. Your customers will have that “aha” moment, when they reach a layered loyalty milestone, share a family celebration, or receive a notification about a restaurant event. Connecting with guests across multiple platforms builds loyalty and provides the customer an all around consistent experience.

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Well now what?

Let’s get you on the right track to picking the loyalty program that fits your restaurant.

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Choosing the best program involves assessing costs, analyzing customer behavior, and determining which kinds of rewards generate the desired benefits.

Restaurant loyalty programs can offer all kinds of rewards and use various levels of newtechnology.

Managers can assess loyalty programs by taking the following actions:

• Study behavior of existing customers• Conduct a survey that studies customer

opinions of several types of rewards• Try time sensitive promotions to see if

rewards actually provide more sales• Research programs to discover details

such as how many other restaurants participate, how easy it is to change strategy, and whether the program retains ownership of a restaurant’s loyalty database if you stop using the service

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Happy researching!

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If you want more information on FiveStars Loyalty specifically and how it can integrate with your business, just reach out to us!