The Impact Of Customer Spending Habits When Using A Loyalty Program
According to Accenture Interactive, members of retailers’ customer loyalty programs generate between 12 and 18 percent more revenue for retailers than do customers who are not members of the loyalty programs.
And, according to Food Newsfeed, customers continue to cut back on dining out. Competition is on the rise and virtually every segment of the business is affected. If there’s any edge to be gained, they point out, it’s through loyalty programs.
That’s some good food for thought (pun intended). So, how do customer spending habits change when there’s a loyalty program they can take advantage of?
Loyalty Programs Will Drive Up Your Customer Base
81 percent of customers said loyalty programs would make them more likely to continue doing business with a brand, and 73 percent are more likely to recommend a brand that has a good program.
We can talk stats all day. The point is that loyalty programs can increase your customer base.
In a time when it’s getting increasingly difficult to attract walk-ins and stimulate new business, there are few things more effective than a targeted loyalty program.
“Targeted” being the keyword here. If you know who your customer is and what they want, you’re far more likely to be able to create an attractive rewards initiative for them. Keep in mind this will vary from one restaurant to another, casual to fine dining, chain to independent, and so on.
Loyalty Programs Will Increase The Amount Your Customers Spend
66 percent of customers modify how much they spend to maximize the rewards they get from a loyalty program. Why is that?
Generally, customers feel like they’re getting more when they’re spending more. They are far more motivated to take advantage of continuity programs than one-offs, especially if rewards are easy to earn and it helps the-+m get something they want.
Coupons and discounts are nice. But if used incorrectly, they can devalue your brand. And, motivation levels for the customers tend to decrease when these offers aren’t tied to points, they can collect on a continual basis.
No doubt you are already aware of how popular online ordering is becoming. Encouraging walk-ins can be a challenge, but online ordering is massive. If you can combine online ordering with your loyalty program, it can become a powerful one-two punch that results in bigger orders and more revenue for your restaurant.
Is Your Loyalty Program A Match For Your Customers?
Loyalty programs may well be effective. But their overall value only increases in relation to how well-matched the program is to your target audience.
You need to work to remove as many barriers as possible. The need to download an app, remember a membership card for every visit, having to enter a code, having to register an online account or remember one’s login details can all be potential barriers to entry. It’s important to make the process as simple as possible.
Removing the friction makes it easy for your customers to get what they want, and in the end, you’re the one benefitting as you see your customer base and order sizes increase.
Customers are looking to spend with brands that offer them what they’re looking for. By giving them the rewards, they want, you can set your business up powerfully for the present and the future.
Are you looking for help with your loyalty program? Are you interested in customizing your offers and integrating your system to create an effective omnichannel experience? You can learn more about our loyalty and reward integration for restaurants service here.