Creating a Restaurant Loyalty Program

Branding & Marketing Strategy

Bringing new customers to your restaurant is great, but what matters is keeping them coming back. Your regulars are the ones who not only boost your sales but also spread the word and bring new customers your way!

That’s where loyalty programs come in. These programs reward customers for being regular guests, which encourages them to continue spending and promoting you. Seventy-six percent of Canadians prefer dining at restaurants that offer loyalty programs and discounts.

Here’s how you can develop a loyalty program that works!

Set Clear Objectives

Establish the goals of your loyalty program. Don’t just say you want customers to spend more cash. Get specific.

For example, do you want to:

• Increase the frequency of visits?
• Boost the average transaction value?
• Enhance customer retention?
• Stand out from competitors?

Identify what you want to accomplish and write it down. If applicable, include more than one goal.

Select the Perfect Loyalty Program for Your Business

Next, pick a structure that aligns with the goals you want to accomplish:

• Points-based System—Customers earn certain points per dollar spent, which they can redeem as rewards (e.g., Dunkin’ Donuts).
• Tiered Rewards—Escalating benefits based on spending levels (e.g., Chick-fil-A One).
• Visit-based Rewards—Rewards are given based on the number of visits a customer makes (e.g., Panera Bread’s MyPanera).
• Gamified Programs—Immerse customers through interactive games or challenges (e.g., KFC Rewards Arcade).

Experiment with different programs to see which ones bring the most results.

Keep it Simple and Accessible 

Your customers don’t want to solve a puzzle (unless it’s part of a game that offers rewards), so make your loyalty program easy to access and use.

If you use digital platforms, such as apps or online accounts, allow seamless tracking and redemption. Also, minimize barriers (and frustration) by asking only for essential information during the sign-up and log-in stages. If you have the budget, offer an omnichannel experience where customers can participate in-store, online, or via mobile.

Create Irresistible Rewards 

You also don’t want to give your clients an anticlimactic experience. In other words, amping them up to receive a reward that leaves them saying, “Gee, thanks.” So make your rewards worthwhile.

Based on the insights you’ve collected about them, create rewards your audience will appreciate. That may mean discounts on certain meals, free items, or exclusives.

Personalize Offers 

If possible, personalize your offers. Leverage customer data (given with consent) to create rewards based on your customers' behaviour and preferences. That may include celebrating personal milestones or promotions that fit their unique interests.

Promote Your Loyalty Program 

Don’t let your loyalty program go unnoticed. Promote it across all relevant channels, including social media, in-store advertisements, and other media platforms.

Communicate how the program works, the benefits it offers, and how customers can sign up. Additionally, train your staff to actively promote the program and guide customers through the enrollment process.

Track & Enhance the Program’s Performance

You’ll also need to monitor your program’s performance. Assess its effectiveness and justify its costs and associated efforts.

Track customer engagement and spending patterns. These are especially measurable if using digital tools and apps as a platform for your loyalty program.

Once you’ve tracked your performance, adjust where needed based on the data your monitoring yields. Don’t forget to ask for customer feedback to learn more about what’s working and what isn’t.

Gather Inspiration 

If you ever get stuck on what to do for your loyalty program, study examples from successful restaurant chains. While you want to create something unique to your brand, you can use others’ loyalty programs as inspiration for your own.

Household names, such as Starbucks, KFC, and others, have recognizable loyalty programs you can learn from. Of course, stick to ideas that fit your budget and your team's capabilities!

Most importantly, create rewards that appeal to your specific customer base.