How a Personalized Loyalty Program Can Increase Restaurant Sales |

Restaurant owners can analyze data collected from their POS system, including purchasing trends and customer demographics, to create an effective loyalty program that will resonate with customers.

By Mo Chaar, Commercial Director, Givex – 8.2.2022

After the peak of the COVID-19 pandemic, customer loyalty has never been more important for foodservice brands, especially those looking to grow revenue and accelerate recovery from the peak of the pandemic. 5% more customer retention can increase profits by 25-95%and it costs five times less keep a current customer than to land a new one.

In addition, loyal customers spend more, with 15 percent of customers who are loyal to a brand generating between 55 and 70% of that brand’s total sales. Restaurants that don’t capitalize on these opportunities to build customer loyalty and optimize marketing are leaving money on the table, which is why loyalty programs are a must in today’s restaurant landscape. . But operators must have the right technology before they can successfully launch a winning loyalty program.

Use a data-driven point of sale to create a loyalty program

87% of Americans are willing to give up personal data for more personalized rewards and brand experiences. Fortunately, an omnichannel POS system constantly captures valuable customer data, including buying trends, demographics, and average spend per sale. Restaurant owners can then analyze data collected from their POS system, including purchasing trends and customer demographics, to create an effective loyalty program that will resonate with customers. A successful loyalty program is simple, streamlined and straightforward, keeping customers coming back again and again while saving money.

Restaurant owners can encourage customers to use their loyalty program to receive special offers and discounts if they order directly through the restaurant’s online ordering portal. Using their loyalty program in this way gives restaurateurs better access to new customers they might otherwise lose engagement with on third-party delivery platforms.

Leverage real-time data to maximize revenue

While loyalty programs create a direct path to increased sales and better customer retention, they also provide restaurants with an opportunity to hone their understanding of their customer base. Restaurant owners should use loyalty programs to ensure that they consistently offer promotions and products that appeal to and resonate with their target customers. If owners notice a drop in sales, it may be time to modify the program and offer new incentives to bring back customers who may have started to falter.

Remember: Loyalty is not unique. For example, while a points-based program may work for some brands, others may find that customers respond better to discounts on top-selling menu favorites or free add-ons at certain times. Although it takes a few tries to find the program that works best, restaurateurs will benefit in the long run and walk away with a deep understanding of their specific clientele.

Target the best customers with personalized rewards

When it comes to retention, restaurateurs need to keep a close eye on their best customers in particular and make sure they craft attractive promotions to keep them coming back. Recent survey shows that 75% of consumers prefer companies that offer rewards and 56% of customers stay loyal to brands that offer them, so it’s in a restaurant’s best interest to capitalize on this trend.

Monthly newsletters and e-blasts, for example, offer restaurants a simple and effective way to share their latest offers with VIP customers and ensure that loyal members are always the first to know about exciting new promotions or limited-time offers. . An effective loyalty program enables conversation between a restaurant and its customers not only to share news about exciting menu additions, but also to receive valuable customer feedback.

Powered by point-of-sale data, a loyalty program is one of the most effective tools a restaurant can use to increase overall sales while empowering customers to build a stronger sense of brand ownership.

Since joining Givex in 2007, Mo Chaar helped the company expand its presence in North America. He began his tenure as Director of Business Development before becoming Vice President of Sales for North America, then transitioned to his current role as Chief Commercial Officer. In this role, Chaar oversees business strategy and development worldwide in addition to managing sales teams in North America. His background in gift cards, loyalty and point of sale has been central to the success of some of Givex’s biggest partners. Chaar earned a degree in business administration from Sheridan College and prior to joining Givex, he served as site manager for Jiffy Lube International. Givex is a global, cloud-based operations management solution designed to streamline business efficiency and generate valuable, actionable customer data. Since its inception in 1999, Givex has provided operational intelligence across a wide variety of industries, from foodservice and retail to hospitality and the service sector, offering a fully integrated suite of customizable products, including gift cards, loyalty cards, point of sale (POS) and analytics.

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