Creating a Loyalty Program

A loyalty program is the most effective way to keep customers coming back on a regular basis. An example is if a customer eats at your restaurant 5 times they get the 6th meal free. Or maybe if they buy 3 coffees the 4th is 50% off. Customers like being rewarded for their loyalty, and the financial cuts you’ll have to take to give discounted or free stuff is certainly worth building a loyal customer base. Today 30% of all restaurants offer some sort of loyalty program, and 57% of adult customers say they are more likely to visit a restaurant that offers some sort of loyalty program.

You can manage your loyalty program through a computer program with individuals’ names and a running tally of their visits, or you can do something as simple as a paper punch card. However you decide to do it, it’s important that you explain it to customers and encourage them to get the rewards.

An additional option is creating a VIP club for regular customers. Everyone wants to be a VIP and this will encourage people to visit more in order to obtain this elite status. It’s up to you how you want to distinguish VIPs from normal customers. Maybe give them a percentage discount on different items every day, or allow them to try new dishes. Maybe its a free shirt or hat. Whatever you decide to do make sure your customers know a VIP club exists and encourage them to become part of it.

NEXT SECTION: Becoming an Active Member of the Community