You will notice that there are two participation levels available. The VIP program costs $24.95 USD but that cost may well be worth it for top-tier customers, due to accelerated rewards in that program and other benefits. For customers who are unsure about the value proposition, there is also a free version, which can serve as a funnel for the VIP program. This illustrates loyalty program segmentation, based on spending level. It’s well worth considering.
The Secret Recipe of Best-in-Class Restaurant Loyalty Programs
The Secret Recipe:
Best-in-Class Restaurant Loyalty Programs
The Restaurant Business is Like Dating
Been in a
couple of times
Chatting with the
owner and staff
a Regular Customer
What is Loyalty Marketing?
the effort to identify, maintain and increase the
yield from best customers through long-term,
interactive, value-added relationships
What Restaurant-Goers Do Now...
(and what they would do)
a restaurant loyalty program
If their favorite restaurant
had a program
Source: Technomic, Market Intelligence Report, 2013
AGREE: “I am likely to base my
decision about where to dine,
based on whether or not I am a
member of the restaurant’s loyalty
The Power of Loyalty Marketing
Due to restaurant rewards
Source: Loyalogy, Loyalty Pulse Study, 2013
to friends, if the restaurant has a
good loyalty program.
What about a “punch card”?
Easy to implement
No contact information
Vulnerable to cashier fraud
Rewards are routine, boring... basically, a discount
What Do YOU Want Your Best Customers to Do?
• Make you their first choice?
• Plan their birthday party with you?
• Refer their friends?
• Rate you on Trip Advisor?
• Use you for catering?
• Come in during non-peak hours?
• Order extras – like wine and dessert?
• Order take-out?
5 Good Restaurant Programs
Let’s see why they are effective...
• Online Activation or via Call Center
• 300 Bonus Points for Activation
• Rewards Expressed as Tangible Benefits
• Notice that First Reward is Possible after Spending
40.00 (equivalent to 3-4 meals.)
• Earn = 5 Points for
every 1.00 Spent
• Reward: 500
Points = 5.00
• Redemption is in blocks
of 500 Points
• Equates to a 5% Reward
+ 200 Earned
= 500 Reward
Why the First Redemption Matters
Earn Rates Increase by up
After claiming a first reward
Source: LoyLogic, the Loyalty Guide 6, Section 1.4, pp. 25-26.
Hard Rock Program
• Two program levels: FREE and VIP
• FREE earns 20 points for each $1 USD
• VIP earns 30 points for each $1 USD
• New Members Are Entered to Win Great Prizes
• (All Expense Paid Trip to Hard Rock Hotel, Orlando, Florida)
• Monthly Offers
• Commemorative Hard Rock Collectibles for Reaching Member
Black Tier members and a guest are also invited to an
annual VIP catered yacht ride around the New York harbor.
An app is a great way to
create even deeper
This is an
This is equivalent to a free meal. If
it’s a party of two, it’s like a 50%
discount. The bigger the group, the
less expensive the discount will be.
Members are rewarded for
posting about White Csstle on
New members get two free hamburgers (called “Sliders”) for signing up.
They also earn points for completing activities online.
3 Steps to Get Started (or to get Re-started)
• Review overall company business objectives
• Obtain voice-of-customer feedback
• Segment based on demographics, lifestyle, needs
• Tiering / scoring based on RFM data
• Identify target groups
• Identify desired member behaviors
• Determine loyalty program objectives and KPIs
1 2 3
3 Steps to Get Started
• Create a promotional currency, determine the value
• Determine how members will earn and burn points
• Ensure that rewards are relevant, attainable and worth
• Create a simple enrollment process
1 2 3
3 Steps to Get Started
3. Get Creative
• Focus on customer relations. Build a mutually-beneficial
• Create tailor-made offers.
• Recognize and reward best customers. Create brand
• Use simple, direct communication. Keep offers fresh
• Imagination creates winning advantage.
Technology is merely an enabler.
1 2 3
Loyalty Planning Framework
This need not be a long,
protracted process, but it
is wise to follow a
thinking about customer
loyalty, so that important
considerations are not
skipped over. Doing this
produces a more reliable
Let’s explore the possibilities!