Loyalty Programs: Keep Inflation from Taking a Bite Out of Your Customer Base
Consumers are fighting the impact of inflation and an impending recession. To keep enjoying what they love, they’re turning to loyalty programs to get more value for their dollars.
Check out our Q&A with Senior Strategist, Jess Snyder, and garner some initial insight on why loyalty is important and how to take your program to the next level.
Q: How can restaurants attract consumers during rising inflation & impending recession?
A: A great restaurant loyalty program will keep customers who love your brand coming back for more. Why? Customers simply enjoy being recognized for their patronage. Ensuring they are rewarded for their time and money spent is an easy way to both win and retain customers.
The data speaks for itself. Current dining trends reports suggest that 50% of diners are more likely to dine where they’re a loyalty member. Moreso, loyalty programs are a huge hit with younger generations like Millennials and Gen Z, where 71% are more likely to join a loyalty program than their older counterparts.
It’s easy to see why the investment in loyalty is an excellent way to keep your brand top of mind and chosen more often than the competition.
Q: What keeps consumers coming back?
A: It comes down to two things – a product they love, and a brand who cares. If your brand is already delivering a product your consumer loves, then show them you care. A loyalty program is a sure-fire way to ensure consumers are being recognized and rewarded for their loyal behaviors. Rewards that mirror their consumption habits & are easily redeemed will ensure they will increase their spend, visitation, and frequency, earning the brand more money than going after net new customers.
Surprise & delight tactics for acquiring and maintaining loyalty are the best consumer attraction tools for restaurants.
Q: What are the most successful programs and why?
A: The most successful programs are personalized to individual consumption habits. Programs that reward behaviors specific to each individual and give personalized incentives that appeal to their spending habits tend to garner the best results. In fact, 61% of consumers think brands should be more thoughtful in using their personal information to predict their needs.
Simply put, consumers want to know the brand knows them – from their favorite beverage, to their go-to order. They want to be rewarded for how they purchase, not how you want them to purchase so it’s crucial to strike the right balance in the rewards being offered.
Restaurants should do their part to best understand their audience and how they interact with their product offerings. Programs that segment their audiences to deliver a 1:1 loyalty experience are the ones that drive the most success. It gives consumers not only what they desire but what they expect from top brands in the industry.
Want to learn more about developing or optimizing your loyalty program? Reach out to our experts by filling out the form below!