Why Have a Loyalty Program?

Loyalty programs are basically a part of the sales and marketing strategy of your successful restaurant business which offers incentives to customers such as loyalty points, vouchers, and rewards programs that may be redeemed at the time of purchase. It is one of the major tools for customer retention. With increasing customer volatility, loyalty programs have become a key tool to be ahead of the competition and make sure that loyal customers stay with your restaurant.

Loyal customers are the best customer. Your loyal customers become your brand ambassadors when they love your restaurant. These loyal customers let the world know about your restaurant business and its unique selling point (USP). But it doesn't happen by chance. You need a strategic approach to build such loyal customers for your restaurant. For your loyalty programs to be successful, make sure you adopt a strategic restaurant loyalty program to back them. This is where the loyalty programs play a major role in building loyal customers as your brand ambassadors.

Importance of Loyalty Programs
Several studies have proved that a loyal customer brings in as much as 10 times more than a new customer for your restaurant. Loyalty programs help you identify loyal customers for your restaurant. Customer satisfaction is one of the primary reasons for growth of your restaurant.

Loyal customers satisfied with your product or your services is more likely to recommend you to new customers. This may prove a solid sales strategy for your successful restaurant because the chance of converting a prospect increases by four times when it is a case of customer recommendation. A few other important loyalty programs include-

- Loyalty program builds an emotional connection with the customers
- Loyal customers have a high ROI for the brand through loyalty points
- Loyalty program helps you reach and get new customers
- Enhanced customer insights give your brand a strategic push
- Loyalty programs deliver higher profits with more growth

How to develop a loyalty program
Loyalty programs offer your customers rewards, vouchers, gifts, and recognition. In turn, a customer earns their loyalty points for your brand. Here are some steps that must be followed before developing your loyalty program-

- Study on customer behavior, payment, customer satisfaction, and buying pattern can help in developing a loyalty program
- Assess customer satisfaction through surveys, interviews, and feedback. Identify employees who are good at customer service and want to be a part of the program
- Set your goals to measure the level of success or desired results of the customer loyalty program
- Set a budget to manage customer retention, customer development and create strategies
- Profile your loyal customers based on different parameters like purchase volume, payment, etc., and plan a customized strategy for a loyalty program
- Apart from customer retention, also focus on a prolonged relationship with the customer in a loyalty program

Loyalty Card App
A loyalty card app is basically software that helps run loyalty programs on your online ordering. These loyalty program apps offer loyal customers earn points on every purchase or online order. With these loyalty points, customers may earn perks or discounts on their next purchase with you. There are call to action also associated with these apps like requesting and directing customers to follow your brand on social media.

A loyalty card app is undeniably beneficial for the customer, but it is also a powerful tool for your business. As per a recent survey report, more than 68% of customers are up for joining the loyalty programs. More than 58% of the surveyed loyal customers stick with their brands even with cheaper options available.

To create and implement a successful loyalty program can be a difficult task. But, creating simple, consistent and customized deals to targeted customer groups through restaurant loyalty program ideas can help keep you ahead of your competitors and attract new customers.