Building customer relationships in the restaurant industry 

Loyalty Program for restaurants – How to increase profits by 40% | 2024 Guide 

Did you know that 65% of a restaurant’s revenue comes from returning customers?* With increasing competition and rising operational costs, an effective loyalty program is the key to sustainable growth in the restaurant business. 

Why are customer relationships key? 

The power of a loyal customer 

In today’s competitive restaurant market, food quality alone is not enough. The key to long-term success is creating a loyal customer base that not only returns regularly but also actively recommends your restaurant. A loyal customer is not just a source of revenue – they are a true brand ambassador. Statistics show that a satisfied guest recommends your restaurant to an average of 4-6 people, generating organic customer growth. 

The economics of customer relationships in numbers 

Investing in a loyalty program is not an expense, but a strategic business decision backed by data. The analysis of the restaurant market clearly shows that focusing on retaining existing customers delivers significantly better financial results than constantly seeking new ones. Let’s take a look at specific data that supports this claim: 

• The cost of acquiring a new customer is 5-7 times higher than retaining an existing one. 
• Loyal customers spend an average of 67% more per visit. 
• 60% of loyal customers are more likely to try new menu items. 
• Regular guests are 25% less sensitive to price increases. 

Modern tools for building customer relationships 

The digital revolution in practice 

Modern technology has revolutionized how restaurants build customer relationships. With the digitalization of loyalty programs, collecting and analyzing customer preferences has become easier than ever. The use of these tools allows for precise customization of offers and communication to meet each customer’s needs. 

• Customer identification via QR code in Google or Apple Wallet 
• Personalized recommendations targeted at the right customer group 
• Notifications about promotions and events 
• Tailoring promotions and rewards to customer needs 

Building a community 

True loyalty goes far beyond points and discounts. It’s about creating an authentic community around your brand, where customers feel part of something bigger. Building such a community requires a systematic approach and commitment from both the restaurant and its guests. 

• A newsletter with engaging content to maintain a strong relationship 
• Exclusive tastings for loyalty program members 
• Culinary workshops for the most engaged customers 
• Rewarding the most active customers with additional products 

Practical implementation of a loyalty program 

Customer analysis 

An effective loyalty program starts with a deep understanding of customer behavior and preferences. Systematic data collection and analysis enable informed business decisions and offer personalization. Let’s take a look at the key areas that require special attention: 

• Segmenting the customer base by visit frequency 
• Identifying the most popular products 
• Analyzing peak and off-peak hours 
• Studying payment preferences 

Offer personalization 

In a world where customers expect an increasingly personalized approach, standard promotions are no longer enough. Modern loyalty programs enable the creation of tailored offers that cater to the preferences of specific customer groups. This personalization is what provides a competitive advantage: 

• Set rewards tailored to your customers 
• Create limited-time offers for the most engaged customers 
• Generate additional sales through special offers whenever needed 

Sources:

*https://capitaloneshopping.com/research/brand-loyalty-statistics/ **https://www.invespcro.com/blog/customer-acquisition-retention/