We all know that your most loyal customers are your most profitable ones. One strategy for keeping them coming back is loyalty programs. They engage your customers and reward them for their loyalty to your business.
We’ve outlined below why so many restaurants use loyalty programs, and how they can benefit your cafe.
1. Learn About Your Customers
The best way to learn about your customers is by talking to them and getting to know them. But that’s hard to do if you aren’t in the store all the time, or have many locations. So how do you do it? By collecting data on what your customers are ordering, and how often. A good loyalty program will allow you to dig into what your most loyal customers are buying.
2. Increase Order Sizes
If set up based on dollars spent, your loyalty program will reward customers for spending more money. To reach a reward level faster, your customers are incentivized to spend more each visit.
3. They Make Your Cafe Feel Like a Club Your Customers Belong To
Loyalty programs make your customers feel like a part of your business. Some loyalty programs are designed for exclusivity. Some offer membership only to a part of their customer base or require customers to do something specific to join.
For example, one coffee shop requires customers to try all their standard roasts to be eligible for rewards. Once you’ve worked your way through their standard roasts, you are invited for special coffee tastings and events. By tasting all of the standard coffees the shop offers, their customers “prove” that they are coffee connoisseurs and “earn” the ability to order more obscure roasts. This creates a feeling of belonging for the customer and drives revenue for the coffee shop.
4. They Bring Customers Back More Often
Loyalty programs increase the customer lifetime value of your customers. If you set up your loyalty program in a way that incentives customers to spend more, they’ll come back more often to reach their next reward level. And customers that come back more often spend more long-term.
5. They Increase Your Brand Awareness
Your loyalty program could work double-time by allowing customers to earn free swag. Swag is anything branded like t-shirts, coffee cups, and hats. If the swag is exclusive, you increase your customers’ desire to earn enough points to win their prize. And, if your customers are wearing or carrying your swag, then they are helping you advertise your brand.
There are many reasons to set up a loyalty and rewards program for your cafe. If you’re considering a digital loyalty program, reach out to our team. We show you how you can integrate it with a mobile ordering app.
