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Official Magazine of Restaurants Canada
DIGITAL LOYALTY PROGRAMS
SATISFACTION
GUARANTEED
The power of digital loyalty
By Fiona Lake Waslander
Restaurant owners have a lot on their plates. On any given day, they are managing employees, overseeing operations
and, of course, producing great meals. With all this, it can be tough to dedicate time and effort to marketing programs.
The good news is that if you own a restaurant, you’ve probably already met your best source of future growth.
Studies show that it costs less to retain
an existing customer than it does to
attract a new one, making the value of a
we l l - m a n ag e d l oya l t y p r og r a m
undeniable. A study by Maritz revealed
that 78 per cent of Canadians modify
where they shop in order to maximize
benefits. Fortunately for consumers,
reward programs have gone beyond
stamp cards to include digital, mobilefriendly options like Vicinity, a
customizable loyalty and communications
program that incorporates rewards for
multiple merchants into a single card.
But how does one develop customer
loyalty and grow a customer life cycle
beyond a single visit? The right tools
and strategies can deliver smarter
insights and stronger sales.
48 May/June 2015 |
Canadian Restaurant & Foodservice News
DIGITAL LOYALTY PROGRAMS
AUTOMATED MARKETING
Have you ever received a text message
from a brand? If so, you’ve experienced
automated marketing. This tactic has
grown increasingly popular in recent
years and it’s not just for big chains.
Automated marketing enables owners to
easily reach customers based on certain
triggers to offer them an incentive to
return to the restaurant. A popular
example is offering a customer a free
item or meal on their birthday. The
customer feels good that their birthday is
acknowledged and celebrated and the
owner benefits from the added business
that can come from a birthday party
dinner held with friends and family.
Automated marketing gets noticed
and in turn increases the likeliness of a
return visit. A Tatango report reveals
that text messages have a 99-per-cent
open rate. The key to turning that
engagement into action lies with
customized communication. Constant,
mass communication can cause customers
to lose interest. Instead, messages
should be triggered by specific customer
behaviours to ensure that each customer
is targeted for a reason.
Loyalty Promotion Ideas:
Convert clientele – Are there customers that only come in during weekday lunch? Use
automated (text message) marketing to offer special promotions for dinner or weekend visits.
Smart
Business
For Your
Business
Bring them back – Use automated marketing to reach customers who haven’t been to the
restaurant in a certain period of time (for example, 14 days). Offer them a discount or promotion
as an incentive to return.
Solve sales issues – Use promotions to attract customers on slow days or boost sales of new
or less popular products.
Digital loyalty programs provide
restaurants, grocery stores and specialty
food stores with more than just repeat
business, however. They’re also a
valuable source of customer insights
and data. From program sign-ups to
reward redemptions to response rates
for different marketing campaigns, data
reveals which promotions are working
and which ones need to be rejigged.
LOYALTY OF ALL SIZES
Loyalty prog rams can work for
restaurants of all sizes. Burger Factory,
a fast casual restaurant based in
Mississauga, Ontario, offers special
promotions to its lunchtime crowd
directly through automated text
50 May/June 2015 |
Canadian Restaurant & Foodservice News
messages. Windsor, Ontario’s Mamo
Burger Bar offers discounts and gift
cards to customers who make repeat
visits to sit-down dinner or lunch. Every
restaurant is different, and figuring out
the right model to use requires
experimentation.
It’s often said that the restaurant
business is driven by passion. By
rewarding customers that already love
your menu, service and atmosphere, you
have an opportunity to develop the same
loyal passion among your guests. Digital
loyalty programs are an ideal way to
reward your best customers while
giving you more time to focus on what
you do best – delivering great food and
exceptional experiences.