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In case you haven’t already heard, loyalty programs deliver outstanding financial returns to restaurants by motivating guests to visit more often and spend more on each visit. Simply put, if you want to maximize your restaurant’s revenue, you need loyalty.

However, when we talk about loyalty, we don’t mean the standard “buy five items, get one free” deal that comes along with a paper punch card. That was loyalty 1.0. Loyalty 2.0 delivers far greater ROI but is a more complex science. To be successful at it, you’ll need to address the following questions:

  1. Which program will best engage and compel your guests?
  2. What type of loyalty program aligns with your concept type and brand?
  3. What kind of program can your staff effectively execute?
  4. Which program will help you achieve your restaurant’s financial goals?

After you’ve determined your answers to the above, you can begin structuring your program. While loyalty may seem like a singular entity, it’s actually composed of three different pieces: core program, layered programs, and promotions. We define these three components as such:

  • Core Program: The underlying structure of a loyalty program, this defines the program’s rewards and how they are earned, redeemed, and expired.
  • Layered Programs: These are additional member benefits and program behaviors that run contiguously with the core program.
  • Promotions: These are limited-time offers that target specific member segments to motivate incremental visits and purchase behavior.

Need more details on how to structure your loyalty program? Make sure you check out our on-demand webinar, “Choosing a Loyalty Program That’s Right for Your Brand.”

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