5 Best Restaurant Social Media Examples to Learn From
Social media has transformed marketing across various sectors and the restaurant industry has experienced some of the biggest changes over the last...
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Attract More Dream Customers and Keep Them Longer
4 min read
Jul 18, 2024
Despite restaurant industry disruption caused by the COVID-19 pandemic and ongoing economic and financial concerns, Americans still love dining out. In fact, nine out of 10 people still want to go out and have a meal at a favorite restaurant, according to NRA’s 2024 State of the Restaurant Industry.
This is fantastic news for the industry. In 2024, it’s anticipated both restaurant sales and hiring will increase, as operators need more employees to meet customer demand.
That said, competition is always fierce in the restaurant industry, and consumers have more options than ever. Providing great service and food is the bare minimum these days.
Restaurant operators now need to actively persuade consumers to get them through the doors and keep incentivizing them to hold their attention. One of the most effective ways to do that is with a well-executed loyalty program.
When done right, a restaurant loyalty program builds a strong customer base, boosting repeat business and sales. Keep reading to learn why restaurant loyalty programs are a must-have in today’s competitive market.
Consumers have more options—and more convenience—than at any other time in recorded history. That’s a good thing. However, with so many businesses competing for their attention, it’s easy to feel lost in the crowd.
Personalization is the key to breaking through the noise and making them feel valued. More than that, personalization is now an expectation. According to Forbes’ 2024 State of Customer Service and CX Study, 81% of customers prefer companies that offer a personalized experience.
It makes sense. Consumers want to believe that businesses see them as real people with unique preferences and needs. Business operators should want to give their customers that same experience.
Through a restaurant loyalty program, you can offer dining rewards or dining points customers earn each time they spend money at your restaurant. Your customers can then use those dining rewards or dining points toward future visits to receive free menu items or discounts.
You may send them a freebie on their birthday or anniversary. You could even send tailored promotions, such as a free menu item coupon or bonus dining rewards, for menu items they order often.
You could also offer exclusive perks, such as early access to menu items or entrance to a special VIP event. All these personal touchpoints make customers feel special and entice them to visit your restaurant.
However, to offer that level of personalization through dining rewards and other marketing tactics, you need accurate, comprehensive data. Data capture through a restaurant loyalty program is vital.
As important is choosing a loyalty program platform that offers robust analytics so you can have key insights into customer preferences and behavior at your fingertips. Your platform should also have segmentation and marketing automation capabilities, so you can efficiently send the right marketing messages to the right people at the right time.
While there’s plenty to be optimistic about, the hospitality industry always faces challenges. 98% of operators say higher labor costs and 97% say higher food costs are issues for their restaurants this year. [National Restaurant Association] At the same time, customers are also feeling the weight of higher prices.
Restaurant rewards programs are a win-win, offering customers much-needed savings when they want to stretch their budgets. Free items and “Buy One, Get One Free” deals can be especially appealing right now, but even dining rewards and discounts can keep them coming through the doors.
It’s all about offering them value for the products they already want to buy, which is why analytics and automation capabilities are so critical. For example, our AI to IASM solution analyzes customer behaviors and then automatically sends targeted, personalized offers and messages based on those behaviors and preferences.
Restaurant rewards programs also provide powerful customer insights you can use to cut costs, better serve customers, improve marketing, and increase profitability (both short-term and long-term). That may be why 67% of restaurant operators are planning to improve their customer loyalty program this year. [KPMG]
And 40% are planning to use data insights to better understand customer preferences and become more competitive. [Restaurant Dive]. The benefits of restaurant rewards programs—as a means to combat rising costs—are proving to be worth investing in a leading loyalty program platform.
When we talk about growing your restaurant, we must include the significance of your most loyal customers. Restaurant customer loyalty is the foundation your business is built on. Loyal customers:
Keeping your most loyal customers happy by providing outstanding food, ambiance, service, and value is the key to scaling. With the financial footing and word-of-mouth marketing they provide, you’ll have the money needed to target new customers.
Rewards programs can be instrumental in building restaurant customer loyalty and satisfaction, empowering your customers to benefit from their patronage, surprise them with gifts, and keep them engaged with personalized offers and messages. Ultimately, restaurant rewards programs go a long way toward keeping your most loyal customers around for months or years to come.
On the operational side, a restaurant rewards program can provide you with predictive analytics and in-depth insights, so you can make your marketing much more efficient and successful. Because you’re targeting the right people with the right messaging, you reduce marketing spend, while increasing sales.
Paytronix includes a powerful self-service loyalty platform that makes it easy for you to enroll more customers, capture more data, and drive repeat business. In fact, our best loyalty platform clients have achieved 50-70% participation rates. To learn more, schedule a demo today.
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