In today’s competitive restaurant market, understanding your customers is more important than ever. While many restaurants focus on attracting new customers, they often overlook the power of their existing clientele. Building a loyal customer base is crucial for long-term success, and one of the most effective ways to achieve this is by leveraging a digital loyalty program.
Start with the basics: Collect customer data
A strong customer database starts with collecting even basic customer data. It’s not about having every detail immediately, but about starting with essential contact information. By doing so, you can begin to understand your customers better and get a clearer picture of their preferences. This foundational data will guide your marketing efforts and help you make them more personalised over time.
Connect with customers effectively
Instead of relying on fragmented email lists or just recognising regulars, a customer database provides a direct marketing channel to engage customers more effectively. With the right digital tool, you can easily create exclusive benefits, such as VIP cards or special offers, and send targeted messages to your customers. These strategies help strengthen customer loyalty, enhance their overall experience, and ultimately contribute to your restaurant’s success.
So, how can you make the most of this data to grow your business?
- Increasing visit frequency and building loyalty
Loyal customers are the backbone of any successful restaurant. Studies show that loyal customers visit 90% more often, spend 60% more per visit, and are five times more likely to choose your restaurant again. This repeat business helps you build lasting relationships with your customers, creating a steady stream of revenue. Loyalty fosters lasting relationships and consistent revenue—and this is a key benefit of utilising restaurant loyalty programs.
- Maximising revenue and customer lifetime value
A 5% increase in customer loyalty can boost profits by as much as 95%. This demonstrates just how powerful a well-executed restaurant loyalty program and customer engagement strategy can be. By leveraging a customer database, you can unlock this potential by growing customer lifetime value and driving spending through personalised benefits and targeted communications.
- Reducing acquisition costs and building repeat business
Acquiring new customers can cost up to 25 times more than retaining existing ones. This stark reality makes it clear that the key to growth isn’t just about attracting new faces, but also keeping the ones you already have. Restaurant sales tools, like loyalty programs, help turn first-time visitors into regulars by offering benefits, personalised offers, and seamless communication. By investing in your existing customers, you build a foundation for sustainable growth.
- Improving return rates with effective engagement
Keeping your customers engaged is crucial for ensuring they return again and again. Studies suggest that despite personalisation being a key factor in customer engagement, many customers still feel overlooked when businesses fail to meet their personalisation expectations. A well-implemented customer loyalty system helps ensure your restaurant stays top of mind, encouraging repeat visits and building stronger customer loyalty through tailored messaging and benefits that consistently engage your clientele.
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Sources:
Retail Dive. Despite Expectations of Personalization, Most Shoppers Don’t Want to Share. Link
CleverAge. Five Trends Shaping the Future of Customer Loyalty. Link
Harvard Business Review. The value of keeping the right customers. Link