6 ideas to build a great customer loyalty program

Oct 04, 2022

6 ideas to build a great customer loyalty program

Customer loyalty programs are a tried and true way to build relationships with customers and encourage repeat purchases. Rewards programs are commonplace across the foodservice sector, and you’ve probably already used or experimented with one. 
However, today’s savvy consumers expect loyalty programs as standard, making it harder to wow them and build genuine loyalty to your business. Below, we’ll explore the key benefits a customer loyalty program can bring and six ways to make yours a winner.

  • In terms of your overall marketing spend, customer retention is always cheaper than acquisition
  • Loyal customers spend more money!
  • Loyal customers will provide you with word-of-mouth marketing, telling their friends and family about your business
  • When they sign up for your rewards program, you obtain valuable customer data that can help you better understand your customer base

 

Have you ever turned down signing up for a loyalty rewards program because you were in a hurry or simply didn’t want to stand at the counter and read out your details? Or have you ever misplaced your loyalty card, missing out on a discount or opportunity to earn rewards points?

While these may sound like minor inconveniences, for many, they’re more trouble than the rewards are worth. Today’s consumers have busy lives, so convenience is a major factor behind every commercial decision they make.

Luckily, technology can remedy these issues. With the same type of software behind QR code menus, you can use customer management software to make everything digital, eliminating the need for physical rewards cards. 

You can even have a signup link to your rewards program as a QR code and place it on tables along with your menu or at your point of sale. Your customers will find it far more convenient to follow a link and autofill their details than manually sign up at the counter when they’ve eaten and are ready to leave.

You can also integrate your loyalty program with your point-of-sale system so that customers are automatically rewarded for their purchases without needing to take any extra steps.

There’s nothing like a little FOMO to motivate customers to engage with your business, and this applies to your rewards program as well. Adding a time-sensitive element to how your customers earn rewards points and benefits is a great way to encourage them to form a habit with your business.

For example, if you run a cafe, rather than just rewarding customers for every five or ten coffees they buy, you could offer them something extra if they order three coffees in the same week. 

Make sure you keep these offers sensible. Visiting your cafe three times a week isn’t unreasonable for most people, especially if they work nearby and you’re already part of their morning routine. If you run a restaurant, dining with you once or twice a month is reasonable.

Everyone loves to save money, so it makes sense that most customer loyalty programs offer some kind of discount as a reward. However, customers expect this as a norm, so it’s difficult to build true loyalty with discounts alone.

Offering experiential rewards is a great way to elevate your customer loyalty program. Experiential rewards could include early access to new menu items or access to a secret menu, preferential seating on busy nights like Valentine’s Day or Mother’s Day, or giving them free entry to an upcoming event you’re hosting.

A successful customer loyalty program will organically generate word-of-mouth marketing for your business. However, you shouldn’t ignore the opportunity to incentivise this through the loyalty program itself.

For example, you could let customers earn loyalty points by sharing photos of their meals on social media with your hashtag. Similarly, you could reward them for sending their friends and family directly through your door by providing them with a unique referral code.

If you really want to go above and beyond with your rewards program, think of ways you can surprise and delight your customers. This should be something special and unexpected that acknowledges how valuable their loyalty is to your business.

This could be as simple as offering your loyal customers a freebie the next time they come in. If you have a dedicated loyalty app with location services enabled, you could send customers a push notification when they’re nearby your business with a special offer to get them through the door.

Traditional rewards like “get your 6th meal free” are effective, but have you considered trying something more flexible? Instead of offering a specific type of purchase for free, you could give customers a percentage of what they’ve spent as credit they can redeem at their discretion. 

This approach won’t cost you anything extra, and your customers will appreciate the greater freedom in how and when they redeem rewards.

Here are three examples of businesses going the extra mile with their rewards program.

Vessel Dining & Bar: Loyalty program members earn 10 cents credit for every dollar they spend which they can redeem on future purchases. Customers can view their balance through the restaurant’s website at any time.

Appetite Five Dock: The Appetite Advantage rewards program comes with a dedicated mobile app that acts as a digital loyalty card. Customers get 20% off their first order when they sign up and can also use the app to pre-order, jump the queue, enjoy one-click reordering and save their favourite orders.

Soul Origin: The Soulmates rewards program gives customers $5.00 in store credit for every five visits that they can spend any way they want. Members can use the app as a digital loyalty card and enjoy exclusive offers and gifts, as well as being first the know about new menu items.


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