Loyalty programs can bring great value to your restaurant. By enticing guests to visit more often and to spend more with each visit, a loyalty program can deliver exceptional financial returns.
There are many different types of loyalty programs and several different loyalty programs may work for your restaurants. There are no absolute rules for success, particularly when each program can be shaped to fit the character of your restaurants. Your success depends on creating a loyalty program that offers relevant attainable rewards that fit your budget and operating model.
The table below describes the most common loyalty program types and highlights the key advantages.
If you would like to discuss creating loyalty programs in more detail, contact us.
In a Frequency program, guests receive points for the purchase of specific products or for each visit made. Each time an item is purchased, the guest receives a point and when a designated threshold is met, the guest automatically receives the reward. A buy nine, get one free is a common example of a product frequency program. After the reward has been received, the product points are reset to zero and begin accruing again. Read More about Frequency Programs.
In an Automatic Rewards program, guests earn points for each dollar spent. When the defined threshold is met, the points are converted into a reward. After earning the reward, the point values are reset to zero and the guest starts to earn points again toward his next reward. Typical rewards include product rewards or reward dollars. Read More about Automatic Rewards Programs.
Bankable Points programs allow guests to accumulate points to redeem for rewards of their choosing. With every dollar spent, a guest earns points that are tracked and stored in their personal account. Her point balance will grow with each purchase, and will only be converted to rewards when she takes action to redeem the points for a reward she values. Read More about Bankable Points Programs.
A Surprise and Delight program allows restaurants to provide guest rewards at random. There are no set intervals or thresholds for guests to receive rewards. Instead, the excitement of unexpected rewards drives guest loyalty. Read More about Suprise and Delight Programs.
In a Membership program, a guest typically purchases a membership card that entitles her to benefits including bonus items, points, and discounts. These benefits may be available periodically (once a month) or earned when she accrues points. Read More about Membership Programs.
With Affinity programs, restaurants donate a percentage of guest spending to a designated charity. Sometimes restaurants will sweeten the incentive to spend by combining the pledge of charitable donations with a discount. Read More about Affinity Programs.
Discount programs give guests a price reduction on their purchases. A guest may receive a percentage off of his entire purchase or for selected menu items. Read More about Discount Programs.
Tiered programs are often layered onto loyalty programs to keep guests engaged and active over time. Strong buying behavior qualifies guests for access to a higher tier of rewards and promotions. Read More about Tiered Programs.
Read about our Top Loyalty Promotions
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