RESTAURANT STRATEGY Do You Need a Loyalty Program for Your Restaurant?
Mar 13, 2025
Dive into the world of restaurant loyalty programs and discover their true impact on customer engagement. Learn why generic strategies fall short and how tailored, data-driven approaches can boost profitability. Unearth the secrets of fostering loyalty by drawing inspiration from the airline industry, emphasizing the importance of positive experiences and tangible rewards. Explore innovative concepts, including a unique loyalty program combining fees and rewards, designed to encourage repeat visits and increase spending.
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Loyalty Works But Focuses On Heavy Users
- Loyalty programs work because big brands use them and have data proving efficacy.
- They primarily increase frequency among heavy users rather than convert casual customers into heavy users.
Measure Loyalty Program Performance
- Measure your loyalty program so you know if it produces returns before you invest heavily.
- Track inputs and outputs and don't treat loyalty as a set-and-forget tool.
7% Of Customers Drive Most Revenue
- A tiny share of customers generate most revenue; Peter Fader's work refines Pareto to about 7% driving 93%.
- Prioritize making heavy users even heavier to maximize lifetime value.
