Leave a comment

Restaurant owners have a lot on their plates. On any given day, they are managing employees, overseeing operations and, of course, producing great meals. With all this, it can be tough to dedicate time and effort to marketing programs. The good news is that if you own a restaurant, you’ve probably already met your best source of future growth.

Studies show that it costs less to retain an existing customer than it does to attract a new one, making the value of a well-managed loyalty program undeniable. A study by Maritz revealed that 78 per cent of Canadians modify where they shop in order to maximize benefits. Fortunately for consumers, reward programs have gone beyond stamp cards to include digital, mobile-friendly options that are customizable to incorporate rewards for multiple merchants into a single card.

But how does one develop customer loyalty and grow a customer life cycle beyond a single visit? The right tools and strategies can deliver smarter insights and stronger sales.

Automated marketing

Have you ever received a text message from a brand? If so, you’ve experienced automated marketing. This tactic has grown increasingly popular in recent years and it’s not just for big chains. Automated marketing enables owners to easily reach customers based on certain triggers to offer them an incentive to return to the restaurant. A popular example is offering a customer a free item or meal on their birthday. The customer feels good that their birthday is acknowledged and celebrated and the owner benefits from the added business that can come from a birthday party dinner held with friends and family.

Automated marketing gets noticed and in turn increases the likeliness of a return visit. A Tatango report reveals that text messages have a 99-per-cent open rate. The key to turning that engagement into action lies with customized communication. Constant, mass communication can cause customers to lose interest. Instead, messages should be triggered by specific customer behaviours to ensure that each customer is targeted for a reason.

Digital loyalty programs provide restaurants, grocery stores and specialty food stores with more than just repeat business, however. They’re also a valuable source of customer insights and data. From program sign-ups to reward redemptions to response rates for different marketing campaigns, data reveals which promotions are working and which ones need to be rejigged.