Note: To illustrate our article on how to build customer loyalty, we used the example of coffee shops, but the same principles apply to any independent restaurant or bar looking to improve customer loyalty and retention.
The loyalty program, a formidable marketing strategy for independent restaurants
When Starbucks launched its loyalty program, the chain saw an immediate boost in sales . Globally, same-store sales increased by an average of 7%, driven by a 4% increase in customer visits. The brand’s net revenue increased 18% to a record quarterly total of $4.9 billion.
You might be thinking, “Yeah, sure, but it’s Starbucks .” However, remember that any coffee shop can learn from this success and be inspired by it. Let’s go even further: independent coffee shops have potential and advantages that large chains are unable to replicate.
Starbucks has the advantage of this area processes inputs and labor are plann having many locations, but you have a secret weapon: you’re not a multinational chain. You have a very specific niche and you’re authentic. You serve quality, fairly produced coffee with a unique flavor. You’re a haven for true coffee lovers.
So let’s focus on your qualities: how can we make the most of them?
The loyalty program, a formidable marketing strategy for independent restaurants
How to Build Customer Loyalty: Show Them They Are Valued
A study by Technology Advice found that 83% of consumers are more likely to buy from a store that offers a loyalty program. So when it comes to choosing between your establishment and the coffee shop down the street, a loyalty program can make all the difference with customers.
The key to a loyalty program is showing your customers that you appreciate them. They buy your coffee because it’s delicious canada telegram data and not industrially produced. But what will keep them coming back again and again is a loyalty program that incentivizes them by offering free drinks and snacks. By doing this, you’re not just telling them you appreciate them—you’re showing it , too.
How to retain your customers: offer them interesting and relevant benefits
The same Technology Advice study indicates that 59% of consumers prefer app-based loyalty programs. By combining your customers’ desires with your own goals, you’ll create a winning formula that will satisfy everyone.
App-based loyalty programs have many benefits , the main one being that they allow you to gather your customers’ contact data and purchase history, and offer them personalized and relevant offers.
The loyalty program, a formidable marketing strategy for independent restaurants
Example ?
Let’s say one of your customers orders an Americano and a cheese bagel every day of the week. Instead of offering them the same reward as everyone else, you can use their purchase history to offer them a reward that actually matters to them.
How to Build Customer Loyalty: Make Your Most Dedicated Customers Feel How Valuable They Are to You
56% of consumers love feeling like they’re part of an exclusive club. In addition to collecting information about your customers’ purchase history, you can also create an automated rewards program that operates on multiple tiers . The higher the tier, the higher the quality of the rewards.
Example ?
This strategy helps you turn your customer experience into a game, while offering your most loyal customers (those who spent the most chine directory with you in the previous year) even more attractive rewards. Offering different reward tiers will encourage customers to spend more. They’ll seek proportionally higher rewards and be part of an increasingly select group.
For more examples of tiered loyalty programs, check out this article on Hubspot .
How to Build Customer Loyalty: Improving Your Brand Reputation
Loyalty programs help you earn customer appreciation and organically grow your brand, as your current customers are your best brand ambassadors. If you focus your efforts on ensuring their satisfaction, they’ll be more likely to recommend your establishment to their friends.
Getting referrals is one of the most effective ways to attract new customers. 77% of consumers are likely to buy something from a place they’ve heard about through friends. Think about it. Out of ten people a customer tells about you, seven will likely come to your cafe if they hear positive things. So give your current customers good reasons to spread the word.
Loyalty programs allow you to send your customers personalized email offers on special occasions: their birthday, the anniversary of their first time at your store, or the addition of a new coffee type to your menu, for example. Maintaining a meaningful connection with your customers will help build your reputation—and a good reputation will set you apart from the competition, attracting more customers.