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How to keep your customers coming back to your Restaurant?

As a Restaurant, it will be crucial to offer your customers a loyalty scheme. This is because loyalty schemes will allow your customers to be rewarded by your restaurant. This will encourage them to become loyal and repeat purchase at your restaurant. If you offer an effective loyalty scheme, you will see your restaurant’s sales and profit rise. Here is a guide on how to offer an effective loyalty scheme.

How to keep your customers coming back to your Restaurant?

What type of loyalty program to use?

Points system

A points system loyalty scheme will allow your customers to earn points depending on the amount of money they spend.  You can set a target number of points which means that once they reach that number of points, they will be eligible or a reward. For example, every £5 your customers spend, they will be rewarded 50 points and will receive a complimentary item when they earn 500 points. This will prevent you from having to discount your meals and will encourage loyal customers to repeat purchase. However, it may not lure many customers in as they will have to wait for their reward. It can also take a lot of time and effort to set up this type of loyalty scheme and customers may need reminding on how many points they have.

Punch card

One of the most traditional loyalty schemes which restaurants use are punch cards. Every time a customer purchases a meal, their card will be punched. Once they have a certain number of punches, they will be eligible for a reward. For example, purchase 10 meals and get the 11th free. The punch card program is very easy for customers to understand and use which will encourage them to repeat purchase and use their punch card. The punch card scheme will also keep your costs down as you will not have to spend a lot of money to get it set up. This shows the punch card loyalty scheme will encourage customers to repeat purchase and will allow your profit margin to widen. However, it can cause inconveniences for the diner because they will have to carry it with them when visiting your restaurant. The punch card loyalty scheme is not reliable as customers may punch the card themselves which means that you will not be able to see the amount of times that the customer actually visited your restaurant.

Discount Card

Restaurants can provide their loyal customers with discount cards which will enable them to pay a discounted price for a set number of meals. Discount cards will be cheap for your restaurant to set up which will enable your profit margin to widen. Discount cards are an effective way of encouraging customers to repeat purchase because your customers will automatically be able to redeem their rewards. This will lure more customers into your store which will encourage your sales to grow. However, offering discount cards may lead to customers only using your restaurant for the discounts which will lead to them rarely visiting your restaurant. This will limit the amount of sales that your restaurant will receive. Discount cards may lead to customers thinking that your regular prices are too expensive. This will deter potential customers as they will not want to pay a lot of money for their meals.

Cash Back

A cash back scheme allows your customers to receive a certificate which will be redeemable for a certain amount of money which they spent at your restaurant previously. It is recommended that you put a time limit on the eligibility of the offer. Offering a cash back scheme will encourage your customers to repeat purchase as they will want to use their certificate. This shows that a cash back scheme will encourage your customers to visit your restaurant regularly which will allow your sales to grow. However, a cash back scheme can become complicated and will cost a lot of money to manage. This shows that offering a cash back scheme will increase your costs and could limit your profit margins. The cash back program will have limited effectiveness for your restaurant as it will not attract new and infrequent customers.

How to create a successful loyalty scheme?

Structure

When creating a loyalty scheme, you must ensure that you offer a reward that customers want but you should also ensure that the loyalty scheme is beneficial for your restaurant. Finding this balance can be hard which is why you should find a structure that will lure customers in but will also benefit the sales and profit of your restaurant. It is recommended that you reward customers after a specified number of visits. This will lead to your customers repeat purchasing which will generate enough revenue to pay for the cost of the reward that you are giving out. There is no point rewarding customers with a free meal after one visit because it will reduce the chance of your customers repeat purchasing as they will already be eligible for the rewards. This will limit your sales and will prevent your profit margin from growing. Once you have decided on a structure, you should not change it as this will annoy customers. Changing the structure of your loyalty scheme will display your restaurant as inconsistent which could deter customers from your restaurant.

Advertise

If you want your loyalty scheme to be successful, it is crucial to promote your scheme. Promoting your loyalty scheme will enable your customers to know about it which will lead to them visiting your restaurant and getting involved with the loyalty scheme. This shows that promoting your scheme will encourage a larger audience to visit your restaurant. This will lead to your sales increasing and your profit margin widening. It is important to remember that the more customers who get involved with the loyalty scheme, the more repeat purchases your restaurant will receive. Effective advertising will allow your loyalty scheme to become very successful and popular. You should send emails to your customers which is advertising the loyalty scheme and you should also post the loyalty scheme on your social media. You should also promote your loyalty scheme with signs inside your restaurant and outside your restaurant. This will encourage the public who are walking by to visit your restaurant which will increase the sales of your restaurant.

Keep your customers intrigued

Many customers will get bored of loyalty schemes after a long period of time. This will lead to your restaurant losing loyal customers which will reduce the amount of repeat purchases your restaurant receives. This will have a negative impact on the financial health of your restaurant. It is recommended to keep customers intrigued by your loyalty scheme by offering special double points periods or giveaways. This will lead to your customers visiting your restaurant more often because they will want to make the most of the double points or will want to win the giveaway. This shows that adding incentives for a limited period of time will keep your customers visiting your restaurant. This will lead to your repeat purchases increasing which will allow your sales to grow.

Reward your customer’s loyalty!

 

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