While the economy may be showing signs of vibrancy, consumers remain cautious. A recent article in PMQ Pizza Magazine, however, reports that loyalty programs can be an effective weapon for restaurants in these times.
“Acquiring new customers is incredibly expensive,” said Logan LaHive, founder and CEO of a loyalty program developer in Chicago. “Because you get 80% of your revenue from 20% of your customers, rewarding loyalty is the best tactic.”
If you use or are thinking about implementing a loyalty program, here’s some useful information:
- A recent study revealed that 33% of consumers view loyalty programs as very important during tough economic times.
- The same study reveals that consumers spend 17% more on visits that include a loyalty program.
- Loyalty programs are not viewed as giving away products or providing heavy discounts, which may cheapen your restaurant in the eyes of customers.
- When a customer enrolls in a program, you officially establish a relationship, as opposed to someone using a coupon that you may never see again.
- Refrain from asking customers for all of their information at once. Start with a name and email address. Later, you can ask for their mailing address, phone number, and more.
- A loyalty program that works in unison with a recognized charity is often viewed favorably by customers.