The benefits of having a loyalty program for your restaurant
-
Having a loyalty program in a restaurant has two main benefits:
- Encourages visitors to return.
- Increases the average order value.
Increasing the number of returning customers
A loyalty program in a restaurant plays a significant role in customer retention. When you gamify purchases—for example, by converting money into points and allowing customers to earn rewards or buy items at your restaurant after accumulating a certain number of points—you encourage them to keep coming back. They start to see their purchases not as spending money, but more as earning rewards in a game.
Fortunately, focusing on customer retention is rewarding—quite literally. According to Harvard Business Review, it costs 5-25 times more to acquire a new customer than to retain existing ones. Since your customers already know and like your restaurant, it is not a tough battle to make them return.
Increasing the order quantity
The same Harvard Business Review study found that increasing customer loyalty by just 5% can boost revenue by 25-95%.
But how? Customer loyalty programs can increase orders by helping you sell more and in different categories. For example, if you offer bonus points to customers who order a combo instead of a single item, the customer will be encouraged to order more to earn points. Or if they get a specific combo, you give something as a gift. This can also be used as a strategy to drive more orders.
The loyalty program can also be integrated with online orders. This way, repeat orders are encouraged across all channels—online or in-store.
Ideas & Examples for Customer Loyalty Programs
After showing you why a loyalty program is important for your restaurant customers, we are bringing you some inspiring ideas.
1. Points-based rewards
How it works:
In a points-based loyalty program, customers earn a certain number of points for every amount of money they spend. They can earn points just by visiting the restaurant.
For example, the restaurant might give 1 point for every 100 Albanian lek spent. Customers can then use their points to purchase food or products at values you set.
They can also use points as credit at your restaurant. For instance, with 100 points, you might offer a cash value or exchange their points for a free side dish.
For Example:
A burger restaurant uses a points-based loyalty program. Customers earn 75 points and can get a free soft drink, and at 100 points, a milkshake.
With 200 points, they can redeem for a hamburger, and at 300 points, the customer earns a T-shirt.
Tips:
Keep your points system consistent and straightforward for everyone. If customers are clear about what they will receive—e.g., for every 2000 lek spent, they get a free item—they will be more motivated to participate.
2. Item-based rewards
How it works:
Traditional item-based rewards involve purchasing a certain quantity of a product and receiving another as a gift. For example, buy 9 plates and get the 10th one free. This type of reward can also be offered in another format. Initially, a points accumulation program is implemented. Then, these points can be used to earn a specific product based on the points collected. For instance, you can offer a free dessert with every 50 points earned.For Example:
Një restorant hamburgerash ka një shpërblim për klientët të cilët kanë provuar çdo hamburger në menunë e tyre. Ata i shoqërojnë klientët në një tur në ambjentet e restorantit, u japin një bluzë dhuratë dhe një kartë prej 3000 lekë.
Tips:
You need to be careful with the product you choose to give as a reward, as not everyone may like it. This can make customers feel limited. Also, ensure that rewards don’t come solely from purchasing a single category or item. When customers have only one choice, they may get bored buying everything except that item. Even worse, they may leave your restaurant or store.
3. Rewards from subscriptions
How it works:
Në programet e shpërblimit me abonim, abonenti merr shpërblim me arritje të caktuara të momenteve të anëtarësimit. Për shembull, klientët mund të abonohen për një vakt të caktuar, dhe pasi kalon një kohë e paracaktuar ata shpërblehen. Ky lloj programi fitoi popullaritet gjatë kohës së pandemisë COVID-19. Restorantet lançuan shërbimet me abonim që të rrisnin shitjet.
For Example:
One bar offers its customers unlimited coffee with an annual subscription of 19,900 Albanian lekë, equivalent to 55 lekë per day. In addition to saving money, subscribers also receive a personalized mug specifically for program members. Another bar does the same but with a monthly subscription. They offer unlimited coffee and various types of teas for only 890 lekë per month.
Tips:
This type of loyalty program encourages customers to stay subscribed to benefit from club rewards. It’s important to ensure that the rewards are unique to your loyalty program. This way, customers will feel valued for being subscribed with you and won’t look elsewhere to shop. Additionally, we’d advise against choosing rewards solely related to your products.
Reward loyal members with exclusive experiences. A vineyard tour and wine tastings, or a private cooking class (either virtual or in-person) with your chef, would be unique experiences. VIP experiences like these leave a lasting impression.
4. Shpërblimet me anë të promocioneve
How it works:
In this model, rewards have an expiration date. This encourages customers to place orders or dine with you within a limited timeframe. Such rewards do not necessarily require a specific spending amount. On the contrary, they should be given as unexpected promotions to encourage engagement. For example, you could invite customers to dine with you for their birthdays.
For Example:
The sky’s the limit for these types of rewards. Combining creativity with strategy is key to success in filling tables and increasing orders when business is slowing down. You can offer:
-
- A free dessert for loyal members during their birthday month. This motivates them to celebrate this special occasion at your restaurant/bar.
- A free antipasto when they visit or order online for the first time after a hiatus.
- Buy one, get one free on International Holiday Days.
- A free meal on the anniversary of membership.
- A random promotion for customers with higher spending to encourage their return.
- An offer exclusively available with online orders for regular in-store visitors, or vice versa, to encourage purchases from different channels.
A bakery offers limited-time offers to encourage customers to try new flavors or boost sales during quieter periods. For example, they offer discounted coffee during happy hours from 2:00 PM to 4:00 PM. They also provide breakfast packages for 200 ALL, 300 ALL, or 400 ALL.
Tips:
When offering birthday promotions, it’s important to monitor your member list continuously. Ensure customers aren’t taking advantage of the offer by registering multiple times with different contact information.
Remember, a program should bring more benefits than costs.
5. Shpërblimet online
How it works:
Many restaurant loyalty programs reward customers only when they dine in, but it’s important to also reward those who order online. Customers should earn points and rewards for both online orders and physical meals at the restaurant. This gives them more reasons to come back.
For Example:
A café-bar relies heavily on online orders. Using the bar’s app, customers place their orders online and receive rewards for doing so. After making 5 orders through the app, they receive their sixth order for free. Additionally, app users continuously receive other rewards.
Tips:
Implementing rewards through points or items in the online loyalty program should mirror the program applied to in-store purchases. This ensures customers have a consistent experience regardless of how they shop.
Loyalty programs are effective tools for driving online orders. Provide members with a promotional code they can apply to their online orders. Additionally, consider offering rewards that are exclusively earned through online purchases to further incentivize digital engagement.
It costs less and requires less effort to retain customers who have visited you once than to attract new ones. Implementing a loyalty program in your restaurant or bar is one of the easiest and most effective ways to retain existing customers. Such a program can help stimulate repeat visits and increase your business’s value.
Choosing the right structure for your loyalty program is crucial. The right software for this program would further simplify your work. You’ll have the ability to monitor and analyze your earnings more easily, allowing you to focus on strategies to grow your business.