This document discusses how collecting customer data through reservations systems and mobile payment apps can help restaurants provide better service and encourage customer loyalty. It provides examples of how restaurants like Eleven Madison Park research customer details online to customize the dining experience. Collecting data on things like customer preferences, orders, comments and visit history gives restaurants insights to improve their menu, service and marketing. The document advocates for the benefits of detailed customer data in delivering seamless service and retaining returning customers.
2. Loyalty –
it’s easier to
achieve
than you
might think
Regular customers are the lifeblood of
any restaurant. Not only does having a
room full of regulars speak volumes about
your business and reduce the necessity to
chase new custom, but returning diners
are more generous with their wallets, too.
In fact, a returning customer spends up to
67% more than a first-timer. It pays to have
a regular, and recognisable, clientele.
Achieving this is often not
straightforward, however. At a time where
Millennials are continually chasing the
next new food trend, and when restaurants
are opening at an astonishing rate – the
market saw a net 1,770 new restaurants
open in the past 12 months, according to
new data from AlixPartners and CGA Peach
– it is becoming increasingly difficult for
operators to persuade customers to make a
return visit, rather than try elsewhere.
But it is possible. And it can be achieved
not just by serving brilliant food, but by
creating an environment that makes every
customer feel valued and looked after. It’s
well documented that people will return
to a restaurant if the food is poor but
the service is excellent, but often not the
other way round. Service is an even more
important weapon in encouraging repeat
custom than food.
Having well trained front of house
staff is therefore crucial, and equipping
them with the tools they need is essential.
The Little Black Book of Loyalty2
This is where payment, loyalty and CRM
systems such as Velocity can help. From
understanding what diners want and the
habits of the different demographics in a
dining room, to receiving and acting on
feedback and encouraging loyalty, systems
that capture customer data and enable
restaurants to react to any issues in real
time can make all the difference in getting
people back through their doors.
As this guide shows, there’s more to
payment apps than just a digital way of
settling the bill and speeding up table turn.
The best can ensure restaurants encourage
high-value customers to visit time and time
again. I hope you find this ‘little black book’
useful in helping you achieve this goal.
For more information on Velocity
visit velocityapp.com/littleblackbook
or call 0345 222 4547
Alex Macdonald,
Velocity
Co-Founder
& Co-CEO
3. Contents
www.velocityapp.com 3
4-5 What diners want
Why collecting data on
customer preferences can
give you that vital edge
6-8 Who’s in your
dining room
From Millennials and
Generation X to business
diners, do you know
who’s in your restaurant?
9-10 The force of
feedback
Don’t wait for a
TripAdvisor review,
get feedback from
customers in real time
11 Case Study:
Chotto Matte
How the Soho restaurant
has harnessed the
power of feedback
12-13 Serving an ace
Using customer data to
deliver that ‘how did
they do that?’ moment
14-15 Eye on the prize
How to reward diners
4. What diners want
Knowing everything about your
customer, from what they like to eat
and what they do in their spare time, to
what they might be celebrating on any
particular day before they even enter
your restaurant might sound like wishful
thinking. However, with today’s technology
it’s no longer a pipe dream. Whether at
the point of booking a restaurant for the
first time, or hether they are a regular
returning customer, there is plenty of
information a restaurant can collect on
future guests before they sit down to eat,
enabling them to offer them the best
experience possible.
Thanks to the rise of social media and
people’s willingness to share the minutiae
of their lives with perfect strangers
– particularly their eating and drinking
habits and their holiday destinations –
the Internet is now a valuable source of
information for restaurants wanting to
research who will be dining with them.
As such, the practice of Googling people’s
names when they make a reservation is
becoming more commonplace, particularly
among high-end restaurants.
Eleven Madison Park in New York
famously Googles the birth dates, wedding
anniversaries, occupations and more of
diners who have made a booking. This
information is then used to build a guest
profile of each diner, ith the restaurant
even cherry-picking certain aitstaff for
tables based on its findings.
Eleven Madison Park isn’t alone.
Restaurant Story in London also Googles
its guests prior to them dining and Heston
Blumenthal captures information about
its customers using online research for
The Fat Duck in Bray.
Such practices aren’t new; many a
maître d’ at top-end restaurants have long
profiled their guests based on their booking
details and tried to orchestrate the dining
room accordingly. Yet the rise of people
sharing more and more information on
social media has made it a lot easier for
restaurants to do this. If sensitively done,
some pre-shift sleuthing can heighten
the hospitality experience. The challenge,
however, is how do you do it in a way that
doesn’t feel creepy or make the diner feel
that their privacy has in some way been
violated?
COLLECTING CUSTOMER DATA
The answer lies in more sophisticated
methods than merely surfing the Internet,
most notably online reservations systems
and certain mobile apps. These systems
help restaurants store and use a myriad
Collecting data on customer preferences and eating
habits can give a restaurant that vital edge
The Little Black Book of Loyalty
Salad days: know
a customer’s
dietary issues
before they dine
4
5. www.velocityapp.com 5
of information about their customers,
from where they like to sit and what wines
they like to drink, to how often they have
paid a visit to the restaurant and whether
they might be celebrating an anniversary.
Importantly, such information is either
willingly provided or is based on their
habits in your restaurant, meaning it is not
only more reliable than an Internet trawl,
but its collection won’t make a customer
feel uneasy.
What a diner orders on each visit
can be recorded, as can any information
they may have provided at the time of
booking in terms of allergies, or any
previous comments made after a visit.
This then enables a restaurant to build a
comprehensive database on each customer
and use it to their advantage (see chapter
three: Serving an ace).
KNOWLEDGE IS POWER
Having a wealth of customer information
to hand is a win-win situation for both the
restaurant and the customer. Not only does
it equip the restaurateur with knowledge
about the customer that they can act upon,
it ensures diners feel that they are getting
a bespoke service. Happy customers are
returning ones.
Some mobile payment apps are an
invaluable tool for collecting and sorting
customer information. Velocity, for
example, allows restaurants to capture
customer data as they dine. profile is
then automatically built in Velocity’s CRM
ithout restauant staff aisting valuable
time on data entry.
Using Velocity’s CRM restaurants have
vital information, such as how frequently
a customer makes a visit, their average
spend, previous reviews on their dining
experience, and their favourite food and
drink preferences at their fingertips. hey
can also use it to see the most popular
dishes, which can help with menu creation,
and who are the best and worst performing
staff, to help ith employee development to
improve service levels.
Knowledge is power. Having detailed
customer information gives a restaurant the
power to deliver a seamless experience.
The power of data collection
Understanding each customer’s dining habits is a key part
of running a successful restaurant, and one that requires a
lot of hard work behind the scenes.
Latin American neighbourhood restaurants Comodo
in Manhattan and Colonia Verde in Brooklyn continually
collect information about their customers so as to be able to
offer them the best possible service. On a basic level, the
restaurants gather data such as names, telephone numbers
and email addresses. Over time they then acquire more
information as their relationship with the customer builds.
“If someone comes in for a birthday we’ll register that,”
says owner Felipe Donnelly. “Or if one person loves a
certain type of bread we’ll learn that and before they order
it it will be on the table. It’s a simple hospitality tactic.”
Customer information is stored on the restaurants’
reservation systems. However, because they are not linked
to the restaurants’ PoS systems, it is the staff who hold the
majority of the really useful customer data.
“The servers are our ears to the ground and
understand who the repeat customers are,” says Donnelly.
“It’s very archaic but it’s proved to be the best way so far.
If our PoS systems and reservation systems were connected
we would be able to see that in the past a customer had
ordered a certain bottle of wine and it would be a great
way of offering them something similar.”
Donnelly acknowledges technology that makes
collecting customer data more efficient would help give
his restaurants a greater chance of retaining a loyal
customer base. Both his restaurants work hard to retain
their clienteles; returning diners account for 15-20% of
customers at Comodo, while regulars at his Brooklyn
restaurant account for closer to 30% of total customers.
“In Brooklyn we have people who dine with us three
times a week. That’s a crucial part of the business.
Customer retention tells you that you are doing something
right. “New customers still make up the largest part of our
revenue, “ he adds, “but the profit comes from the people
who come back. That’s the key.”
Case study: Comodo & Colonia Verde
6. Who’s in your dining room?
Understanding hat different people
ant from their dining e perience
can pay huge dividends in attracting ne
customers, as ell as driving an increase
in spend per head hen they’re in your
restaurant. hile you can’t ad ust your
menu and d cor on the y, you can arm
your staff ith the kno ledge on ho to
interact ith different customer types.
MILLENNIALS
illennials are the first generation to be
certified as digital natives, meaning they’ve
been brought up ith access to digital
technologies and kno ho to use them.
hey’re also prolific out-of-home eaters.
illennials dine out around times a
month, according to research consultancy
llegra oodservice, roughly % more
than the rest of the adult population.
pend per head is lo er across the
board ithin this cohort, ho ever.
illennials defaults to quick, good value
options and are particularly partial to pi a,
burgers and fast food. ccording to
research by organ tanley, illennials
make up % of fast casual customers.
s a result, restaurant brands such
as c onald’s and ando’s are e perts
at attracting a generation for hom a
smartphone is more an appendage than
an accessory. ast, reliable i i heck.
asy ordering and quick service heck.
isibility on napchat, ou ube and
Instagram ou betcha.
espite their lo er average spend,
illennials can also be lu ury consumers.
esearch from trend forecasting consultancy
he uture aboratory says that illennials
already make up % of lu ury consumers
and are set to eclipse the in uence of aby
oomers in the ne t fe years. oreover,
the past fe years have given rise to a breed
of e u ury illennials s . his
subset is more interested in e periences that
can give them access to intangible lu ury
values rather than discounting.
perators looking to engage ith
this tech-savvy and easily distracted
demographic need to understand ho
technology can streamline the restaurant
e perience and satisfy their desire to be an
early adopter of the latest technologies.
illennials value e perience much more
than price, meaning restaurants must focus
more on service and incentives than pricing
in order to attract them. nd they do not
like to be kept aiting.
GENERATION X
hose born in the early 6 s through to
the early s might not quite be digital
Knowing the preferences of your customers is key to
delivering a great personalised experience
The Little Black Book of Loyalty
Experience
seekers:
New Luxury
Millennials with
purchase power
of $1.68 trillion
6
7. www.velocityapp.com 7
natives but they’re far from clueless when
it comes to technology. Diners from this
cohort almost certainly have a smartphone
and book restaurants online, but only a
comparatively small amount will be up on
the latest apps, social media channels and
wearable tech.
Generation Xers are likely to have
full-time jobs, so their eating patterns are
more predictable than Millennials. They are
time-pressed, however, particularly during
lunch, and thus will embrace technology that
speeds up the restaurant experience. As well
as being less tech savvy than Millennials,
Generation X is more sceptical of its use, but
are willing to try technology perceived to
offer real benefits. If they can be encouraged
to use mobile payments and have a positive
experience, they are likely to stick with it.
At lunch, Generation Xers will typically
opt for a sandwich and a packet of crisps,
but they spend in line with the UK average
when they go out for dinner, according to
Allegra. At dinner, chicken is a popular
choice with healthy eating often front of
mind, although burgers remain hugely
popular with this cohort.
BUSINESS/CORPORATES
he first thing to kno about the business
diners in your restaurant is that they likely
have not booked the table themselves.
That task usually falls to a receptionist or
personal assistant, so those out for a slice
of this potentially highly lucrative group
will have to change the way they market
themselves. Restaurants within or close to
business districts host free lunches pitched
squarely at those that control the diaries of
senior personnel, for example.
Once seated, corporate diners have
markedly different needs, too. ront
of house need to analyse the situation
carefully as those celebrating success will
require different treatment than a group
negotiating a tricky deal. Unnecessary
interruptions are always irksome but are
even more so when you’re halfway through
delivering a career-defining pitch.
Business meetings attract considerably
higher spends than other occasions, in fact
Velocity’s research indicates corporate
diners spend up to 100% more than regular
diners. To help them along, consider a
set three-course menu rather than à la
carte. This also avoids awkwardness about
whether or not the person being hosted
should order a starter or not, as well as the
eventual awkwardness over paying.
A common headache for the corporate
diner is the process of expensing receipts
for their meals, with them often having
to call the restaurant for copies of their
receipts days or weeks after dining. Any
system that can remove this issue will
Done deal:
business diners
want ease of
payment
8. The Little Black Book of Loyalty
A common
headache for
corporate diners is
expensing receipts.
Any system that can
automate this will
engender loyalty
8
be very attractive to corporate diners.
Velocity, for example, has integrated with
the world’s largest expense management
company, Concur, so that restaurant
receipts are automatically sent to the
corporate diners’ expense account. In doing
so, Velocity increases the number of high-
value corporate diners it is sending to its
restaurant partners.
COUPLES
Couples without children, either those yet
to start a family or those whose children
have left home - known as empty nesters -
are an important part of the restaurant mix.
Empty nesters eat out more that couples
living with children and also spend more
when they eat out - typically around 65%
more, according to In uence entral.
ouples tend to have specific
requirements when eating out, many of
which are more linked to service style than
food or pricing. Meals are often intimate
occasions or celebrations where couples
ant to keep staff interaction to a minimum
yet at the same time feel looked after, so
getting the service levels right is crucial.
Older couples tend to dwell longer
in restaurants than Generation X and
Millennials and, because of the more
intimate nature of their meals, are more
susceptible to upselling and added value.
They also tend to be more loyal customers
than their younger
counterparts, and will often
return to a neighbourhood
restaurant or a particularly
memorable place on a
regular basis.
Technology that can collect
and use such information, as
well as acknowledge when
VIPs are in the dining room,
is therefore a very useful tool
in increasing customer service levels and
encouraging loyalty.
Couples tend to be less reliant on
technology for bookings and payment,
particularly empty nesters. Technology
should be used to enhance the service
element of their experience - understanding
their eating and drinking habits, for
example - in addition to speeding up
bookings or payments.
Five ways to attract corporate diners
Adrian Lloyd, Business Development Director, Concur
1. Understand the reason for their visit. The time
of day is a good indicator as to the purpose of
the meal. Lunchtimes are for business and dinners
tend to be more for pleasure. Both occasions have
different needs so tailor your service accordingly.
2. Unobtrusive levels of service are preferred so
they can conduct their business without too many
distractions.
3. Business meetings normally last an hour at
lunchtimes, so it is important that soon after being
seated the order is taken. This ensures the party
does not feel rushed and has plenty of time to
discuss business.
4. Payments at the end of the
meal should be processed
with the minimum of fuss, so
bring the PDQ machine while
delivering the bill to speed
up this process.
5. Make the process of expensing a meal as easy
as possible, so if you are able to send the bill via
email this will support this process. Alternatively,
encourage them to use Velocity where their bills
are expensed automatically straight into their
Concur account.
9. The force of feedback
With social media, everyone’s a critic.
The lines between feedback and
reviews have become increasingly blurred;
diners not only believe they are entitled to
their opinion on food, but that everyone
else should hear it as well.
For restaurants, this means a positive
dining experience can quickly spread across
the Internet via popular channels such as
Facebook and Twitter, and through online
review sites such as TripAdvisor, potentially
boosting business. Yet it also means that
any negative reviews can be spread just
as quickly and as wide, often with the
opposite, and damaging, results.
In most cases a restaurant will discover
the nature of a customer’s comments
only after they’ve been posted online.
Any positive responses will no doubt be
retweeted to a restaurant’s followers,
while any negative comments will
likely precipitate a urry of very public,
apologetic tweets or messages on review
sites. As a form of reputation management,
it’s not the most reliable of approaches.
There is another way that restaurants
can manage their reputation without
needing to trawl the social media channels.
A number of mobile payment apps on the
market now provide restaurants with a
function that enables them to get feedback
in real time, allowing for any potential
problems to be solved before the customer
leaves and goes online to comment.
SATISFACTION GUARANTEED
With Velocity, customers are encouraged
to leave an overall satisfaction rating of
their e perience of bet een one and five
stars, with the additional option of leaving
more detailed feedback. This feedback
is delivered discreetly to a restaurant’s
‘dashboard’ in real time, and not shared
publicly, giving the restaurant ample time
to respond to any issues that may have been
raised while the guest is still in the room.
“I want to know the minute a customer
is not happy,” says Kurt Zdesar, owner of
Chotto Matte restaurant in Soho, which uses
the Velocity app. “From time to time we do
get things wrong and it would be good to
address them before the customer leaves.”
Why real-time responses can give you even
greater control of your dining room
www.velocityapp.com
Five star
treatment:
Velocity users
give feedback
at the touch of a
button
9
10. The Little Black Book of Loyalty
Real-time
response: ensure
customers leave
happy
10
The ability to address feedback in this
manner is much more than a problem-
solving exercise. At a basic level, it gives
a restaurant the opportunity to save a
potentially bad situation and turn it into
a positive one, thus exceeding a guest’s
expectations. On a wider scale, it acts as
a powerful reputation management tool,
with restaurants able to ensure that every
customer leaves with a smile on their face
and hopefully spreads the word about their
dining experience.
UNOBTRUSIVE FEEDBACK
Attaining feedback in this unobtrusive
manner is also an effective ay of a
restaurant identifying aspects of their
dining room that would otherwise be hard
to discover.
Velocity integrates with a restaurant’s
PoS system, meaning that operators can
discover who are its best (and worst)
performing staff as ell as discover its
most highly rated dishes. It can also show
restaurants areas where they might need
to improve, such as enhancing their bar
area, changing their service style or even
increasing (or decreasing) portion sizes,
based on the feedback that they receive.
Collecting feedback themselves doesn’t
prevent restaurants from using social media
to disseminate positive reviews, either.
Velocity integrates into social networks to
digitise word-of-mouth recommendations
with sharing of customers’ positive
experiences. Velocity pre-populates with a
restaurant’s Twitter or Instagram handle
and hashtag, further spreading awareness
to diners’ followers.
Leave your restaurant’s reputation in
the lap of the TripAdvisor or Twitter gods
no longer. It’s time to take back control of
your dining room.
Being able to
collect real-time
feedback gives
a restaurant the
opportunity to save
a potentially bad
situation and turn it
into a good one
11. www.velocityapp.com 11
A Soho restaurant harnesses the power of real-time feedback
Being able to read a dining room and assess
whether every customer is having a positive
experience is a talent that not every front of house
member of a restaurant team possesses. Yet it is
crucial to the success of any operation that all
staff are aware of any problems as they arise and
can respond accordingly.
One restaurant that understands the importance
of customer service more than most is Chotto
Matte. The Soho restaurant is able to receive
feedback from its customers in real time, meaning
that it can react to any issues a customer may
have before they leave the dining room. And the
restaurant accomplishes this through use of the
Velocity app.
Users of the Velocity app are encouraged to
give a rating of their dining experience while
still in the restaurant, empowering Chotto Matte’s
front-of-house staff to be able to address and save
any problem situations. “If the feedback tells us
that the service hasn’t been very good we are
able to react straight away,” says Sam Sedecias,
group general manager at Chotto Matte and
also at Bouillabaisse in Mayfair. “As managers,
we can apologise and fix the situation, such as
organising a free round of drinks for the table the
next time they come in or offering them exclusive
access to the restaurant. It’s a very useful tool.”
Using Velocity’s feedback function doesn’t
replace the skills of Chotto Matte’s highly trained
front-of-house team, but rather augments it. “Our
managers regularly scan the room and analyse
customers’ body languages to see if they are
happy or not. They are actually touching tables
and speaking with customers. What Velocity does,
however, is give us a wider platform to engage
with customers,” says Sedecias.
Using Velocity, for example, the restaurant
was able to identify problem tables that were
consistently receiving lower marks and acted upon
this information by asking staff to pass them more
frequently.
Feedback has since been more positive as a
result. Thanks to the simplicity of how feedback is
requested - customers are asked to give a rating
from one to five, and can also provide additional
comments - Chotto Matte has been able to collect
large swathes of valuable data. The restaurant
has received more feedback in eight weeks
than a year and a half from review sites such as
TripAdvisor.
Case study: Chotto Matte
12. Serving an ace
It is the ambition of many to be able to
walk into a pub or restaurant, and for the
person behind the bar to utter the immortal
words ‘the usual?’ However, the rising
cost of drinks and the transient nature of
bar staff has meant that such dreams of
recognition remain just that - something
that will probably never play out in reality.
It might not be up there with running
a marathon or heading up a company,
but everyone aspires to having that bit of
recognition and personalised service in
their daily lives; from the local corner shop
knowing your name and which paper you
read to the barista of your local coffee bar
understanding you like your milk frothed
a certain way. Recognition is also an
important part of the eating out experience
for many diners and, despite the sheer
number of customers that come through
a restaurant’s door on a daily basis, is one
that has become achievable thanks to the
growing use of technology in the sector and
increasingly sophisticated methods of data
capture.
Where once a restaurant might have only
known the name and telephone number
of a diner in their restaurant (information
surrendered at the time of booking), today
a restaurant knows a lot more about them
thanks to online reservation systems and
apps that can capture vast amounts of
customer information (see chapter two:
What diners want). Restaurants can use this
data to create a truly personalised dining
experience.
EFFECTIVE USE OF DATA
Having lots of customer information is
vital, but how a restaurant uses that data is
even more important. Those that can use
it to create a truly personalised experience
from the minute a customer walks through
the door will not only be able to deliver
that ‘wow’ factor but will also have a
much greater chance of that customer
returning. “Loyalty is about recognition
and personalisation,” says Alex Macdonald,
co-founder and co-CEO of Velocity. “50% of
UK diners say that receiving a personalised
service makes them more likely to return.”
With the Velocity app, restaurants can
collect significant amounts of data on those
customers who use it, such as their eating
and drinking preferences, frequency of
visit and average spend, and then tailor
the restaurant experience for them. For
example, if a customer always defers to
a specific style of ine, aitstaff could
How using customer data can help deliver
that ‘how did they do that?’ moment
The Little Black Book of Loyalty
Knowing me,
knowing you:
diner recognition
is crucial
12
13. proactively offer them to try a ne listing
that meets their tastes. r, a diner ho
makes very regular visits to a restaurant
could be given previe dishes from a
ne menu by ay of recognition for their
loyalty. uch small, personal touches
can make the difference bet een a good
restaurant e perience and a great one.
BESPOKE SERVICE = LOYALTY
no ing ho is in your dining room is also
vital hen trying to offer a bespoke service.
eservations are often made on behalf of
the diner - especially those for business
lunches - meaning that a restaurant is often
unsure as to ho e actly is in their dining
room. sers of the elocity app, ho ever,
sign in hen they enter an establishment,
so that the restaurant kno s e actly ho
its guests are. his makes it much easier for
aiting staff to ackno ledge I guests and
www.velocityapp.com
deliver the level of service they require.
hat’s more, delivering a bespoke
service has more benefits than ust
guaranteeing customer satisfaction on the
day. hose restaurants able to provide a
personalised and memorable e perience are
likely to gain the loyalty of the customer.
In today’s highly competitive restaurant
market, this is often seen as the oly rail
for restaurants.
he reason for this is t ofold. ccording
to elocity, it costs seven times more to
attract a ne customer than to encourage a
current customer to dine again. estaurants
ith a loyal customer base, therefore,
operate more efficiently than those
continually trying to drum up fresh custom.
oreover, returning customers spend up to
67% more than first-time customers, so it
is in a restaurant’s best interest to hold on
to them.
Happy customers:
bespoke service
encourages
loyalty
13
14. Eye on the prize
They seemed like a good idea at the time,
but for many restaurants the dreaded
discount voucher became more of a curse
than a blessing, with customers becoming
almost addicted to using two-for-one
vouchers when eating out.
Regarded as a way of driving footfall
during the downturn, vouchers proved
costly for restaurants that were ostensibly
selling food at half price while still facing
high rents and premiums. Moreover,
the sheer number of offers out there,
particularly from the High Street pizza and
pasta chains, meant that customers didn’t
remain loyal to a specific restaurant brand
once the offer e pired.
As a way of driving loyalty, vouchers
weren’t the magic bullet the industry had
hoped they might be.
Many restaurants have since weaned
themselves off discounting but are still
looking for the elusive answer to loyalty.
The challenge they face is that the types
of loyalty schemes run by pubs, fast food
outlets and coffee shop chains, here
points can be collected on electronic cards,
via apps or with stamps to redeem free
items, often aren’t suitable for restaurant
operations. Not only is having a large
number of different loyalty programs for
different vendors complicated for the
user, who has to carry them as phone
apps or as cards, but a loyalty card doesn’t
necessarily chime with a restaurant’s brand,
particularly those with a comparatively
upmarket offering.
Step forward mobile payment apps
which, as well as streamlining the payment
process, can run sophisticated customer
reward programmes that will get people
regularly returning to a restaurant without
overloading them with paraphernalia.
Systems such as Velocity
can create branded loyalty
schemes for restaurants to
allow customers to collect
and redeem awards each
time they visit a restaurant.
Rewards can be added
automatically once a
customer has checked in
and paid with the app at
any restaurants that use
it, meaning that diners
can collect re ards for a host of different
restaurants with only the one Velocity app.
The restaurants have full ownership of
The day of the discount voucher
is over. Behold the new way
to run a reward scheme
The Little Black Book of Loyalty
Mobile payment
apps can run
sophisticated
reward
programmes
that get people
regularly returning
to a restaurant
14
15. the scheme, with their own logo prominently
placed, and have the ability to manage the
rewards. This means each restaurant can
select parameters such as whether customer
points are collected based on frequency of
visit or their spend, and how many points,
giving them full control over whom they
want to target with their scheme.
REWARDS IN A SINGLE PLACE
aving different restaurant re ard
schemes in one place is significant.
Statistics show that smartphone users
will delete an app if they haven’t used it
at least once in a month. This becomes
more prominent when you look at a single
restaurant loyalty scheme and how this can
easily be deleted if a diner does not eat with
them more than once in a month.
Moreover, such apps are unlikely to be
www.velocityapp.com
transferred across to a new device during
that all-too-regular upgrade.
Velocity has another string to its bow
with its own reward scheme. As well as
diners getting rewards for each restaurant
or group that uses the app, the company
also offers re ards for users across the app
platform. Velocity partners with prominent
lifestyle brands to reward users for repeat
usage, which not only encourages diners to
visit restaurants that use Velocity but also
gives restaurants an impetus to sign up to
the app to attract these customers. This
is significant, particularly hen targeting
Millennials, who are increasingly motivated
by experiential rewards rather than
discounting (see chapter two: Who’s in your
dining room?).
Finally a reward scheme that is truly
rewarding for both parties.
Total ownership:
restaurants have
full control of
loyalty programs
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