Loyal customers return more often, spend more per visit, and provide valuable word-of-mouth marketing. In an industry as competitive as this, building and maintaining a loyal customer base can significantly impact your restaurant’s performance.
In this article, you’re going to learn how to:
- Implement a loyalty program that works
- Broaden your offer and personalize customer experience
- Improve customer experience
- Collect customer feedback and profit from it
- Use social media and technology to your advantage
Let’s dive into eight proven strategies to increase customer loyalty.
Strategy 1: Implement a Loyalty Program
Restaurant customer loyalty is crucial in the dining industry. Studies consistently show that customers are more likely to visit a restaurant with a loyalty program, and those in a loyalty program spend up to 67% more per visit.
One of our favorite examples is Taco Bell’s restaurant customer loyalty program, which integrates gamification that encourages customers to earn rewards through repeat business and social media engagement. Let’s take a look at the loyalty programs most commonly used within the restaurant industry.
- Points-based loyalty programs: Customers earn points for every purchase, which they can redeem for rewards. Create a system where customers earn points for every dollar spent. For instance, customers could receive one point per dollar and redeem 100 points for a free item. Use your POS system to track points and offer a branded restaurant mobile app for customers to check their points and rewards. Ensure staff explains the program to every customer during their visit.
- Tiered programs: This program offers different benefits based on the customer’s spending level. Develop a tiered system with escalating rewards. For example, create three levels: Bronze (0-100 points), Silver (101-500 points), and Gold (501+ points). Offer small rewards for Bronze members, like free drinks. Silver members could get exclusive discounts, while Gold members receive VIP treatment such as priority reservations. Clearly communicate the benefits of moving up tiers to encourage more spending.
- Cashback programs: These provide customers with a percentage of their spend back as credit for future purchases. Offer a simple cashback program where customers receive 5% of their spend back as store credit. This can be automatically applied to their account and deducted from future purchases. Promote this program through email marketing and in-store signage to encourage repeat visits.
Strategy 2: Personalize Customer Experience
According to a study by Salesforce, 64% of consumers expect companies to respond and interact with them in real-time, while personalized experiences can increase customer spend by 38% on average.
For example, Chili’s uses personalized marketing to target customers with customized offers based on their dining habits. This strategy has resulted in a significant increase in customer retention and spending. Let’s take a closer look at how this strategy works.
- Collect customer data: Use your restaurant analytics software to track customer preferences and order history. Set up your system to record customers’ favorite dishes and special requests. Train staff to ask customers if they’d like to join your loyalty program, which will track their preferences. Use this data to make personalized recommendations during their next visit or send customized offers via email.
- Customized offers: Create a restaurant email marketing campaign that sends automated emails based on customer purchase history. For instance, if a customer frequently orders a specific dish, offer a discount on that item. Use customer names in the email to make it more personal. Tools like Mailchimp can help automate this process.
- Personal touches: Train your staff to remember regular customers’ names and preferences. Encourage staff to take notes on regular customers, such as their favorite table, drink, or how they like their food prepared. Use this information to provide a more personalized dining experience. For example, greet regulars by name and ask if they’d like their usual order.
Strategy 3: Offer Exclusive Deals and Promotions
According to a study by LoyaltyLion, 76% of consumers feel positive or very positive about brands that offer unconditional discounts. This highlights the significant impact that such discounts can have on customer perception and loyalty.
Additionally, the same source reveals that 70% of customers are more likely to recommend a brand that has a good customer loyalty program. This statistic underscores the importance of well-structured loyalty programs in fostering customer satisfaction and advocacy.
Dunkin’ leverages this by offering its loyalty program customers discounted coffee beverages and two-for-$2 breakfast wrap combo deals between 2–6 pm, driving traffic during slower hours.
- Special discounts: Provide restaurant discounts on special occasions like birthdays or anniversaries. Collect birthdate information when customers sign up for your loyalty program. Send them a personalized email with a coupon for a free dessert or drink on their birthday. Make sure the offer is valid for a limited time to create urgency.
- Limited-time offers: Create urgency with limited-time promotions. Introduce a new dish and offer a discount on it for the first month. Promote the offer through social media and email marketing. Highlight the limited-time nature of the promotion to encourage customers to try it sooner rather than later.
- Loyalty rewards: Reward customers with exclusive access to new menu items or special events. Host a monthly or quarterly event for your most loyal customers, such as a tasting night for new menu items. Invite top-tier loyalty program members to attend for free. Promote these events as exclusive perks for your best customers to incentivize others to join your restaurant loyalty program.
Strategy 4: Enhance Customer Service
Exceptional customer loyalty in restaurants is a cornerstone of excellent customer service. According to a report by PWC, 73% of customers say customer experience helps drive their buying decisions, and an increase in customer retention can lead to a significant profit boost.
Chick-fil-A exemplifies exceptional customer service with its focus on friendly, efficient interactions, which has helped the chain achieve high customer satisfaction and loyalty levels.
According to the American Customer Satisfaction Index (ACSI), Chick-fil-A has been ranked number one for customer satisfaction for nine consecutive years, with a score of 85 in the most recent survey, outpacing all other quick-service and full-service restaurant brands.
- Staff training: Invest in regular training for your staff to ensure they provide friendly and efficient service. Schedule monthly training sessions focusing on different aspects of customer service, such as handling complaints, upselling techniques, and creating a welcoming atmosphere. Role-playing exercises can help staff practice these skills in a safe environment. You can download our free ebook on how to motivate your restaurant staff here.
- Feedback systems: Implement a restaurant feedback system for collecting and acting on customer feedback. Set up an easy-to-use feedback system, such as comment cards available at each table or a digital survey sent via email after dining. Monitor the feedback regularly and discuss it in staff meetings. Implement changes based on the feedback and inform customers that their suggestions have been acted upon.
- Consistent quality: Ensure that the quality of your food and service is consistent. Develop standard operating procedures (SOPs) for food preparation and service. Conduct regular quality checks and mystery shopper visits to ensure adherence to these standards. Address any deviations immediately to maintain high standards. Follow the link for more tips on restaurant management.
Strategy 5: Engage with Customers on Social Media
Effective restaurant social media marketing can lead to increased loyalty and higher customer satisfaction. Wendy’s has a strong social media presence, engaging customers with witty and humorous content. Their approach has garnered a loyal online following and increased brand loyalty.
- Regular updates: Post regularly about new menu items, events, and promotions. Create a content calendar and schedule posts about daily specials, upcoming events, and new menu items. Use high-quality photos and engaging captions to attract attention. Tools like Hootsuite or Buffer can help you schedule posts in advance.
- Customer interaction: Respond to comments and messages promptly. Assign a staff member to monitor your social media accounts daily. Respond to all comments and messages within 24 hours. Show appreciation for positive feedback and address any concerns politely and promptly.
- User-generated content: Encourage customers to share their experiences and tag your restaurant. Run a monthly contest where customers can win a free meal by sharing their dining experience and tagging your restaurant on social media. Feature user-generated content on your social media pages to create a sense of community and encourage more customers to share their experiences.
Strategy 6: Collect and Act on Customer Feedback
Customer feedback is invaluable for improving your restaurant and making customers feel valued. Studies confirm that 70% of customers will return if their feedback is implemented, and 77% of consumers favor brands that ask for and accept customer feedback.
Shake Shack actively seeks customer feedback through their website and social media, which helps them continually refine their menu and service based on customer preferences.
By leveraging digital tools like their mobile app and implementing self-service kiosks, Shake Shack collects real-time feedback, allowing them to monitor and measure key performance indicators effectively
This customer-centric approach has enabled them to make data-driven improvements, such as introducing popular menu items based on customer suggestions, which enhances overall satisfaction and loyalty
- Surveys and comment cards: Distribute short surveys or comment cards to gather customer insights. Place comment cards at each table and include a short survey on your website or app. Offer a small incentive, like a discount on their next visit, for completing the survey. Regularly review the feedback and share insights with your team.
- Online reviews: Monitor and respond to reviews on platforms like Yelp and Google using your restaurant feedback software. Set up alerts for new reviews on major platforms. Respond to positive reviews with thanks and address negative reviews with a sincere apology and a solution. Use feedback from reviews to make tangible improvements in your restaurant.
- In-store feedback: Encourage staff to ask customers about their dining experience and report back. Train staff to ask customers for feedback during their meal or at the end of their visit. Have a process in place for staff to report feedback to management. Follow up with customers who provide feedback to thank them and inform them of any changes made based on their input.
Strategy 7: Create a Unique Dining Experience
A unique dining experience can set your restaurant apart and attract loyal customers. A memorable customer experience can drive repeat business and build customer loyalty. According to Gloria Food, restaurants with unique offerings see higher customer retention rates.
The Rainforest Cafe offers a unique themed dining experience with a jungle setting and animatronic animals, attracting families and repeat customers.
This immersive environment includes periodic thunderstorms and lush vegetation, creating a captivating atmosphere that appeals to both children and adults
- Themed nights: Host themed nights or events that offer a unique experience. Plan monthly themed nights, such as a “Taste of Italy” dinner featuring Italian cuisine and music, or a trivia night with prizes for the winners. Promote these events through your social media channels and email newsletters.
- Innovative menus: Regularly update your menu with unique and seasonal items. Work with your chef to create seasonal menus that incorporate fresh, local ingredients. Introduce limited-time specials to keep the menu exciting. Highlight new and unique items on your social media and in your restaurant to entice customers to try them.
- Ambiance: Invest in your restaurant’s decor and ambiance to create a distinctive atmosphere. Assess your current decor and identify areas for improvement. Consider adding unique elements like local artwork, mood lighting, or themed decorations. Regularly update your decor to keep the atmosphere fresh and inviting.
- Additional ideas: Explore additional restaurant event ideas and stare in awe at your increasing customer loyalty!
Strategy 8: Implement Technology Solutions
If you want to keep your restaurant ahead of the curve, focusing on a seamless digital experience is key. According to this report by Deloitte, 67% of customers prefer dining places that offer smooth and efficient digital interactions.
This means integrating technology like a food ordering system, delivery services, and an easy-to-navigate restaurant mobile app can significantly boost your customer satisfaction and retention.
Domino’s Pizza uses technology to enhance customer experience through their app, allowing for easy ordering, real-time delivery tracking, and personalized promotions. This has helped them achieve high customer satisfaction and loyalty.
- Mobile apps: Develop a restaurant mobile app for easy reservations, online ordering, and loyalty program management. Partner with a developer to create a user-friendly app that allows customers to book tables, order takeout, and manage their loyalty points. Promote the app through in-store signage and digital channels. Offer an exclusive discount for the first app order to encourage downloads.
- Online ordering systems: Implement an efficient online food ordering system integrated with your loyalty program. Choose an online ordering platform that integrates with your POS system and loyalty program. Ensure the system is easy to use and includes all menu items. Train staff on how to manage online orders efficiently to ensure a seamless experience for customers.
- CRM systems: Use a restaurant CRM system to track customer interactions and preferences. Implement a CRM system that tracks customer data, including order history, preferences, and feedback. Use this information to personalize marketing efforts and improve customer service. Regularly review CRM data to identify trends and opportunities for improvement.
By implementing these strategies, you can significantly improve customer loyalty in restaurants and create a loyal customer base that will keep coming back. Implementing these strategies can help you run a successful restaurant business and win new customers while keeping your existing customers happy and engaged.
Key Takeaways
- Implement restaurant customer loyalty programs: Restaurant loyalty programs encourage repeat business and higher spending.
- Personalize customer experience: Use customer data to offer tailored promotions and personalized service.
- Offer exclusive deals and promotions: Provide special discounts and limited-time offers to create urgency and attract customers during slow periods.
- Offer exceptional customer service: Focus on friendly, efficient service and implement feedback systems.
- Engage with customers on social media: Regularly update and interact with customers on social media.
- Implement technology solutions: Develop mobile apps and online ordering systems to enhance customer experience.
