Grow Online Ordering, Customer Loyalty & Retention with Apps

Let’s talk facts for a moment. Right now, in the U.S., 9 out of 10 people own a smartphone (Pew Research), and the average smartphone owner uses 10 apps per day.

They’re using those mobile apps for everything from communicating and working to entertaining themselves and staying connected with their favorite brands. Increasingly, they use those apps to spend money, whether that’s shopping at retailers or ordering food online.  

Particularly, with online food ordering, we’ve seen rapid growth in the last 10 years. Since 2014, online food ordering has grown 300% faster than dine-in food ordering, accounting for about 40% of total restaurant sales. (MadMobile)

What does all that mean for ​​restaurants and convenience stores that sell made-to-order food options? In short, if you aren’t offering online food ordering—and more specifically integrating online ordering within your loyalty app, you're almost certainly missing out on a significant chunk of business. 

The goal of any strong loyalty program is to keep people coming back, and an easy, quick process for placing orders is one of the surest ways to do so because you’ll meet customers’ demand for convenience and an optimal digital experience. Keep reading to learn how loyalty programs with built-in online ordering benefit your business.

How to Strengthen Customer Loyalty and Retention

Loyalty programs are an essential tool to bolster customer loyalty and retention, and they’re popular. More than half of restaurant customers are loyalty members (PYMNTS), and c-stores experienced a 19% increase in the number of loyalty members from January 1, 2020, to June 20, 2023. (Paytronix Loyalty Report 2023)

Customers are happy to find savings and they want to be rewarded for their patronage. They also expect personalized experiences based on their individual preferences and purchase histories. If you think that’s asking too much, remember: every customer has options—often dozens of options for any choice. 

To strengthen customer loyalty and retention, you must offer customers reasons to keep coming back. They want a robust loyalty program that:  

• Enables them to earn points toward freebies (i.e., for joining the loyalty program, prompting others to enroll, making a purchase, or engaging with the brand in some way)  
• Offers free items and gift cards (i.e., for joining the loyalty program, birthdays, or other special events) 
• Shares tailored discounts or coupons sent out periodically (i.e., percentage or dollar amounts) 
• Invites them to exclusive customer events (makes them feel like your brand is invested in their well-being) 

When all that comes in the form of an intuitive loyalty app that includes an integrated online order system, it provides customers with the type of positive customer experience and service they want—and expect. 

Deliver a Seamless and Positive Customer Experience 

Services like DoorDash and Uber Eats are popular, but it should come as no surprise most customers (70%) want to order directly from the business they’re eating at. (Coolest Gadgets) When your loyalty app offers online ordering, you can provide customers with a seamless solution that takes them from being merely active to making a purchase in a matter of seconds.

For example, with the right loyalty program and online ordering platform integration, you could: 

• Send customers a promotion for a new food item 
• Show them how many points they can redeem toward the order 
• Empower them to place that order 
• Let them pay, using a card they have stored in the app 

The loyalty app could even make recommendations or remind them of other favorites they typically order. They don’t have to call your business or come in and wait around for their food. The whole order process is quick and efficient, and those positive customer experiences encourage them to continue ordering from you. 

Vital to your success is deploying a loyalty program platform that enables you to capture data on customer behavior and preferences and then segment those customers so you can provide a tailored experience from the moment they open the app until they make a purchase. That’s another area where integrating online ordering into your loyalty program is invaluable because it offers a rich source of data on what customers are ordering, their food preferences, and their dietary needs. 

However, the platform you choose must have robust analytics capabilities, so you can act on the data. Paytronix helps you transform your data into actionable insights, allowing you to adjust your menus and marketing strategy, and make improvements to the overall customer experience.

Elevate Average Order Value 

When customers order online, they often spend more money—often as much as 13% more for fast casual restaurants (FCRs) and 26% for quick service restaurants (QSRs) (MadMobile). One reason is because they have more time to browse the menu than they do when dining in. A second reason is, when they call in, they have a specific list of items they plan to purchase. The opportunities to upsell are simply not visible. 

However, an online ordering platform automatically recommends other products—like previously ordered menu items—or add-ons, such as extra sauces or toppings. You could also offer a real-time bonus reward for ordering a certain item or reaching a certain dollar amount. 

Even before they begin ordering, a loyalty program creates an opportunity to boost order value. You can send freebies or coupons to prompt customers to make a purchase, even if they weren’t thinking about ordering from your business. 

Optimize Operations for Efficiency 

One huge benefit of integrating an online ordering platform into your loyalty app is operational efficiency. When customers call in, staff members are dealing with noise and other customers.

Orders can get backed up and mistakes can happen. Orders sometimes end up inaccurate, staff could give the wrong wait times, or they could even accidentally hang up on a customer.

Online orders, however, go directly to the kitchen staff from the customer. Customers control their orders, providing details on any modifications, substitutions, and preferences. 

Not only does online ordering reduce errors and food waste, but it can also reduce customer complaints. It’s less likely customers will successfully dispute an order when they’re the ones who requested it and customized the order, if applicable.

Because online ordering typically facilitates more accurate wait times, customers have clearer expectations and are less likely to become frustrated. Furthermore, staff members no longer have to cover the phones, which enables them to spend more time focused on customers in your restaurant or c-store. 

Combining loyalty programs and first-party online ordering into a single platform also simplifies customer reward management. The platform can automatically track customer transactions and apply rewards in real-time. It offers a seamless, positive customer experience while saving your business time and money.

Frequently Asked Questions About Customer Loyalty and Retention 

How do you build up customer loyalty and retention? 

Building customer loyalty and retention involves creating a positive and personalized customer experience. Key strategies include: 

• Implementing a loyalty program: Offer points, rewards, or discounts to incentivize repeat business. 
• Providing convenience: Integrate online ordering within your loyalty app for a point-and-click ordering experience. 
• Personalizing the experience: Tailor each of your promotions and recommendations using your customers’ zero-party and first-party data. 
• Engaging consistently: Maintain customer communication through email, social media, and app notifications. 

What are the four pillars of customer success? 

The four pillars of customer success are: 

1. Engagement: Keep customers involved via communications, promotions, and loyalty programs. 
2. Value: Show customers the tangible benefits of their relationship with your brand through rewards and perks. 
3. Convenience: Streamline processes like online ordering to elevate your customers’ experiences. 
4. Support: Provide timely and reliable assistance to address customer concerns and feedback. 

What are the four levels of customer loyalty? 

The four levels of customer loyalty reflect varying degrees of customer engagement: 

1. Transactional Loyalty: Customers return to your business to get rewards or promotions but lack an emotional connection. 
2. Engagement Loyalty: Customers frequently interact with your brand and its programs. 
3. Advocacy Loyalty: Loyal customers recommend your business to others. 
4. Emotional Loyalty: Customers feel deeply connected to your brand and prioritize it over competitors. 

How can customer data improve loyalty programs? 

Customer data helps tailor the loyalty experience by: 

• Identifying purchasing patterns for targeted promotions. 
• Personalizing offers, such as discounts on frequently bought items. 
• Optimizing marketing strategies to align with customer preferences. 
• Refining product offerings to meet customer demands. 

How do loyalty apps with online ordering benefit businesses? 

Loyalty apps with integrated online ordering help businesses by: 

• Boosting customer loyalty and retention through rewards and promotions. 
• Increasing average order values (AOVs) with upselling features like add-ons and recommendations. 
• Improving operational efficiency by streamlining order accuracy and reducing errors. 

Why is online ordering important for customer loyalty? 

Online ordering is important for customer loyalty because customers are more likely to opt into your loyalty program and engage with it over time. Integrating both systems allows customers to place and customize orders easily, use loyalty rewards, and receive tailored promotions—all of which foster loyalty and encourage repeat business. 

What features should a loyalty app include to improve retention?

A loyalty app should offer: 

• Points-based rewards systems for purchases or engagement. 
• Personalized discounts and promotions. 
• Integrated online ordering for quick, hassle-free transactions. 
• Data collection and analytics to tailor experiences and improve marketing strategies. 

Develop a Loyalty App with Online Ordering 

Providing your customers with an easy-to-use comprehensive loyalty app with full online ordering integration boosts customer loyalty, increases sales, and provides data critical to the longevity of your business.

Paytronix combines a powerful online ordering service with a leading loyalty app platform, enabling you to meet customer demand for a frictionless online experience. To see it in action, request a demo now.