All about cooking

6 Restaurants That Have Proven the Power of Customer Loyalty Programs

Customer loyalty programs are one of the most exploited marketing strategies of all time. You may have noticed your favorite fast food chain, grocery store, airline and online streaming platform offer them. If done correctly, these incentive schemes can boost your restaurant’s bottom line.

Benefits of Customer Loyalty Programs

Marketers leverage prize programs for their multiple benefits. Here are excellent reasons you should do the same:

  • Boost revenue: According to a study, the best loyalty programs can grow the bottom line by 15% to 25% annually. Buyers either increase their basket size, purchase frequency or both.
  • Increase customer lifetime value (CLV): CLV is the profit you gain from the entire duration of your relationship with the customer. The longer they do business with you, the better your figures.
  • Turn customers into brand advocates: Rewarding patrons will make them more likely to recommend your business to their friends and families. It’s free word-of-mouth marketing — the best kind out there — for you.

Restaurants That Leveraged Customer Loyalty Programs

Here are some examples of businesses that found success in their customer loyalty promotions.

1. Starbucks

While its wide range of delicious coffee and skilled baristas make it a great place to hang out, its customer bonus program is a huge reason for its millions of fans worldwide. Shoppers have multiple ways to earn and redeem points.

For example, members who bring a personal reusable cup when ordering their favorite drink will receive 25 stars and 10 cents off their beverage. The stars are redeemable for a free shot of flavored syrup. They can also choose from any merchandise if they collect 400 points.

2. Costa Coffee

Those flat whites with stunning latte art are indeed a treat to the eyes and tastebuds. However, they’re not the only reasons customers flock to Costa Coffee’s outlets.

Costa Club — the company’s incentive program — offers exclusive perks to regulars. New members can register by downloading the app, earning virtual stamps or beans for every purchase. Once you reach 10 beans, you get one free drink. Members also get a free cake during their birthdays — it’s one of the best ways to celebrate your special day.

Exclusive perks make customers feel appreciated and special, increasing their affinity to your brand. Based on data, reward program members spend 37% more with brands. 

3. Subway

Subway recently launched a new loyalty program — MVP Rewards — replacing its previous MyWay Rewards. All 30 million MyWay members are automatically enrolled in this new scheme.

MVP Rewards is a three-tier loyalty strategy, consisting of Pro, Captain and All-Star. You can move from the introductory to the highest tier by spending more.

  • Pro: Spend less than $200 per year
  • Captain: Spend $200 yearly
  • All-Star: Spend $400 yearly

When you sign up for the Pro, you earn 250 points, 5% bonus points on mobile orders, exclusive deals, and birthday and anniversary rewards. Enterprises that can afford to offer generous rewards will inspire customers to value the program more. A sign-up bonus of 250 points is like a buy-one-get-one deal that’s hard to ignore.

4. Papa John’s

Papa Rewards allows you to collect points from every order of your topping-stuffed pizza. Like Subway, it leverages a tiered Silver, Gold and Platinum loyalty program. You get one point for every $1 you spend at the store or online. If you accumulate 75 points, you get $10 off toward any item.

Joining Papa Rewards is simple — you become a member after downloading the app and making your first order. The pizza chain definitely understands their client’s needs, which is easy registration to their reward scheme. Making the process hassle-free will make customers more receptive to your offerings.

5. Zomato

This India-based company has found ways to incentivize customers. For every purchase, 10% of customers’ bills are credited back as Z coins into their Piggybank. Zomato also donates ₹1 or about one cent in dollars to Akshaya Patra Foundation — the world’s largest nonprofit providing meals for children. It’s an excellent strategy to boost retention.

Partnering with charities is one way to help customers believe every dollar they spend on your business is valuable. Donating a portion of the sale makes them feel they’re doing good for the world.

6. McDonald’s

McDonald’s Rewards entitles you to free burgers, fries and chicken through points. First-time app users get a free Big Mac when they purchase more than $1 worth of food items. Members also earn 100 points for every $1 they spend. If you link a card and use it to pay, you get an extra 1,500 points. You can unlock more rewards by upsizing your fries, drinks and burgers.

A generous reward system compels more customers to join. Playing with numbers also helps. The notion of earning 100 points from every dollar purchase has more pull and appeal to users than the typical one point in every dollar spent.

Increase Customers With Loyalty Programs

Rewarding customers makes them feel valued. If you’re wondering about your next marketing tactic, set up your customer loyalty program. If implemented right, it can boost your business revenue and turn customers into brand advocates. 

Comments are closed.


Join my free email list to receive FREE cook books!