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:
- Which program will best engage and compel your guests?
- What type of loyalty program aligns with your concept type and brand?
- What kind of program can your staff effectively execute?
- Which program will help you achieve your restaurant’s financial goals?
Most convenience stores share similar reasons for having a reward program – such as improving profitability and enticing customers to make incremental sales – but all reward programs are not created equal, and a one-size-fits-all approach may not produce the outcomes that retailers want.
During the webinar “Dos and Don’ts of Successful Reward Programs,” I discussed reward program practices that c-store retailers should adopt, as well as ones that they should be cautious of implementing.
Here are some of the dos and don’ts of successful reward programs: […]
On average about 300 people visit a store’s gas pumps a day, but only 35 percent of those customers step foot in the store. The opportunity to compel store visits is palpable – you are not unlike other marketers who dream of solving this dilemma. We all know that margin, for the most part, lives in the store, not at the pump. Which is why converting fuel customers to frequent in-store patrons is like the brass ring of convenience store marketing.
For years, marketers have tried to solve this challenge. Some send the same ‘buy one coffee get one free’ offer to all customers and then hope it pulls them in. Others have invested in expensive pump displays, point of purchase material and more to convert that customer. There is even a group that has given up trying to convert them – leaving room for competitors to grab their customers instead. There is a better way to motivate store visits.
Use an individual’s purchase data to compel in-store sales. […]
Coalition loyalty programs have been suffering lately. Since their beginning coalition programs set out to create a single loyalty program that connects multiple retailers and brands throughout various industries. The thought behind these programs was if one loyalty program could be used throughout multiple brands that would help the whole and get more customer loyalty across all participating brands.
But recently things do not look like they are working as intended and coalition programs, like the Plenti® program, have an uncertain future. With multiple brands deciding to branch out and create their own branded loyalty program, it looks like coalition programs are nearing the end of their days.
So, what lessons can be learned from the rise and fall of coalition loyalty programs? […]