Offering a targeted loyalty program will build your customer base — no big surprise there. But how much more effective is it to offer such a program than to not offer a program at all? And with so many businesses offering loyalty programs nowadays, how can you stand out? New research from Accenture Interactive found that members of customer loyalty programs generate 12 to 18 percent more revenue for businesses than customers who aren’t members of a program, Dine Engine reports. What’s more, 81 percent of consumers said they were more likely to continue giving their business to brands that offer a loyalty program and 73 percent are more likely to recommend a brand with a strong program. The report said consumers are more likely to adjust their spending based on a loyalty program by spending more money to earn more rewards. These programs may even help restaurants retain loyal guests during economic downturns when consumers are cutting back on discretionary spending. However, research from Forrester found that more than 80 percent of loyalty programs use currency such as points or miles, which can make it difficult for programs to stand out. To boost your program’s chance of success, it can help to remove the barriers that stand between your guests and the rewards they can earn. Show them a clear path to rewards and try to avoid having them encounter multiple barriers such as having to download an app, remember a membership card or login details at each visit, enter a code or register an account online. Also, take a look at potential experiences you can offer your guests. What memorable events or offers can you provide that won’t easily be replicated by your competitor down the street?
Adopting new technology for your restaurant may seem like a necessary evil — the initial investment can be substantial, there are multiple pieces and functions to consider, and it’s impossible to know how quickly the popular tech tool of the moment will become obsolete. Still, the numbers show clearly that restaurants that don’t adopt technology will be left behind. Operators from brands including Wings Etc., Fazoli’s and Your Pie have struggled with this dilemma and they addressed it at the recent Restaurant Franchise & Innovation Summit in Louisville. According to a report in Kiosk Marketplace, the leaders emphasized that operators feeling vexed over tech decisions aren’t alone. The best way to make progress, they agreed, is to focus on doing one thing (or a few small things) well and then gradually improving upon those efforts. Zero in on your biggest pain points or opportunities: Your Pie has set out to perfect its AdWord campaigns to find the right customers, while Fazoli’s has focused on building upon its data-rich loyalty program. For whichever tech tools you decide to focus on, create a broader strategy that considers all of your stakeholders and spells out how they might contribute to (and benefit from) your success.
What’s your challenge? Whether you need help developing recipes and concepts, analyzing food costs, fine-tuning purchasing, planning a marketing campaign or managing another aspect of your business, we can provide guidance tailored to your needs. Contact Team Four at email@example.com or 888-891-3103 for more information.
About Food For Thought and Profit
Food For Thought And Profit is brought to you by Team Four Foodservice/Value 4. We offer the latest foodservice trends, news, safety, and technological advances in the industry. We are an outsourced purchasing and logistics company that provides comprehensive supply chain solutions to our customers. Our executive team has many years of foodservice experience and we bring that experience to work for you. We have expertise in all areas of the foodservice sector.