Attracting a new customer is expensive. In the restaurant world, acquiring a new diner can cost up to seven times more than retaining an existing one. Despite this, many pizzerias focus all their marketing efforts on attracting new customers and overlook the power of a compelling loyalty program to keep customers coming back.
Generic discounts and old punch cards are a thing of the past. The most successful restaurants are using integrated loyalty programs to drive repeat business, increase order frequency, and boost customer lifetime value.
What Works: Beyond the Punch Card
Today’s loyalty programs are all about creating a sense of value and personalization. The most effective strategies move beyond simple, one-size-fits-all discounts and focus on building genuine engagement.
Offer a Sign-Up Bonus: To make your program instantly appealing, offer a sign-up bonus, like 20-50 points, just for joining.
Keep it Simple: The most common and effective point system is one point for every dollar spent. Rewards are typically set at a certain point threshold, like getting $10 off for every 100 points earned.
Drive Specific Behavior: Use the flexibility of your loyalty program to your advantage. For example, offer double points on specific items to drive revenue and profits, such as a new pasta dish, or on certain days of the week, like a typically slow Monday or Tuesday, to increase foot traffic. You can also offer double points on mobile app orders to encourage customers to download and leverage your mobile app.
Must Be Integrated to Succeed
The biggest pitfall of most loyalty programs they are not tightly integrated with your core POS/On-Line ordering applications when they are third-party applications. This often limits the potential benefits for both you and your customers. These third-party loyalty applications require extra work to manage and may actually reduce their effectiveness because of their inability to measure results properly.
An effective loyalty program should be tightly integrated with your POS system, online ordering platform, and mobile app. This creates a seamless experience, allowing customers to easily sign up, earn, and redeem rewards with every purchase, no matter how they order. As Donnie Leary, District Manager at Vito’s Pizza and Subs, says, “Our coupon redemption is way up with the ease of customers being able to find the specials and use the deals that we send out.”
This comprehensive integration provides a wealth of data, giving you the insights you need to truly understand customer behavior and build a smarter, more profitable business. You can track redemption rates, measure the effectiveness of your promotions, and even segment your customers to create highly targeted marketing campaigns through performance reporting.
The ROI of Loyalty: The Numbers Don’t Lie
Loyalty programs aren’t just a feel-good marketing tool; they are a proven tool for driving revenue. According to a study by Forrester Research, companies with mature loyalty programs generate 77% more revenue from customer loyalty initiatives than those without a program. George Panagopoulos, owner of Dedham House of Pizza, states that loyalty and rewards programs have brought in an extra “$10,000 a week” in sales for his business.
This means that a well-executed program can significantly boost your bottom line by increasing both the frequency of visits and the average check. By leveraging an integrated, personalized loyalty strategy, you’re not just giving away discounts—you’re building a loyal community that will keep your business thriving for years to come.
Ready to build a loyalty program that works?