An effective loyalty program is a strategy that is meant to turn new customers into regulars, and the right one can be a powerful restaurant marketing tool for driving repeat business.

Repeat diners have a much higher rate of return than new ones. They spend more per visit and will be more likely to spread the word about your restaurant.

Too often, restaurants and other small businesses make the mistake of focusing all of their time, energy and budget on pursuing new customers. But, it’s your ability to earn repeat business and build loyalty that can make or break your success long-term.

Working to turn to new customers into repeat business is well worth your efforts, and there’s no better way to do so than with the right loyalty program.

Your point of sale (POS) system will track information that makes it easy to engage your customers automatically and the service you provide when they visit will keep them coming back.

We’ve put together a list of a few key promos that reward customers and encourage them to keep returning.

5 loyalty promos to drive repeat business to your restaurant

#1. Host VIP/member-only events

Make your regulars feel special by throwing an event that’s just for them. This could be a private party, early access to new menu items, or anything else you can think of that would make them feel appreciated.

Hosting special events where your members have exclusive access sends the message that your business is in demand and that your members are part of a group of people who get top priority and access.

Set up a keg tapping with a local brewery’s beer and give your members early access for the first hour of the evening, or bring in a guest celebrity chef and offer your members early access to reservations. The key is to also make the event a celebration.

In order to make your customers feel valued, you need to offer them an event they actually want to attend — one that makes them want to be considered a VIP by your restaurant.

#2. Celebrate birthdays

Maybe it stems from childhood, when a birthday was a really special day for most, but people still love to receive birthday gifts. It makes us feel appreciated and valued at any age.

Sending out birthday cards at the beginning of each month with a gift of two for the price of entrees or free desserts will help ensure that your customers make a visit to your restaurant part of their celebrations.

Not only will this generate repeat business, but it will also give you an opportunity to upsell by including a coupon for a special bottle of wine or champagne that can be added to the birthday meal.

This is an easy way to show your customers that you remember them and want to make their birthday a special day.

Pro tip – Collect customer information

In order to celebrate your customers’ birthdays, you need to know when they are! You also need to know how to send your customers their birthday offers. That means you need to collect customer information.

There are a few ways you can go about doing that, including:

• Add a form to your website – Make it easy for customers to sign up for your loyalty program by adding a form to your restaurant’s website.
• Include a sign-up sheet at the restaurant – Place a sign-up sheet near the front door or hostess stand so that customers can fill it out as they wait to be seated.
• Use your POS system – Many POS systems have the ability to collect customer information, so be sure to take advantage of that if you can.

#3. Take advantage of bounceback offers

A bounceback offer is a type of promo that involves printing an offer on customers’ receipts that is redeemable if returned within a short window of time, like the next 48 hours.

Your point of sale system can be used to manage these offers, which are often effective for QSR establishments.

The benefit of a bounceback offer is that it gets customers to return quickly — and often with friends, which helps increase your restaurant’s traffic. A well-designed bounceback offer will also help you upsell by including an offer for a higher-priced menu item or an add-on like dessert.

The key is to make the offer compelling enough that it’s worth the customer’s time to come back, but not so generous that it eats into your profits. A good rule of thumb is to offer a discount of 20% or more on their next visit.

One great example of a bounceback offer that works is the Starbucks Happy Hour special, which offers buy one, get one free Frappuccinos and other blended beverages in the afternoons on select days.

This offer is popular because it’s timed perfectly for an after-work pick-me-up or a pre-dinner drink, and it encourages customers to stop by Starbucks twice in one day.

Plus, since the offer is only available to Rewards members, it encourages people to sign up and creates a sense of exclusivity for people who sign up.

#4. Offer freebies

Customers love the little perks that enhance their experience. Offering a special house aperitif, tasting of an appetizer or sweets to your members as a freebie sets a mood that they are appreciated.

Maybe it seems counter-intuitive to give away your wares, but they only need to be a taste to be effective and your guests will relax and order more.

Plus, offering freebies can help you test out new menu items, offload excessive inventory or use seasonal produce before it goes bad.

For example, you could offer a free appetizer to customers who sign up for your loyalty program or a free dessert to customers who order a certain entree.

You can even opt for a digital freebie, like a coupon for a future visit or a discount on their next order.

People love feeling like they’re getting something for nothing, so this restaurant marketing tactic is sure to please.

#5. Launch a loyalty points program

Loyalty points programs are one of the most popular restaurant marketing ideas because they’re effective and easy to implement.

With a loyalty points program, customers earn points for every purchase they make, which can then be redeemed for rewards like freebies, discounts or upgrades.

This type of program is beneficial for both customers and restaurant owners because it encourages customers to keep coming back, while also providing insight into what types of rewards they’re most interested in.

Plus, loyalty points programs can be easily managed with a restaurant POS system.

When designing your loyalty points program, there are a few things to keep in mind:

• Make sure the rewards are compelling – The whole point of a loyalty points program is to encourage customers to keep coming back, so you need to make sure the rewards are worth their while.
• Offer a variety of rewards – Not all customers are going to be interested in the same rewards, so it’s important to offer a variety of options. For example, some customers might prefer a free appetizer, while others might prefer a discount on their next purchase.
• Make it easy to sign up and redeem rewards – The loyalty program should be easy for customers to understand and use, like a punch card. If it’s too complicated, they’re likely to give up.

A restaurant loyalty points program is a great way to increase customer retention and boost your bottom line.

Bonus tip – Reward user-generated content

Photographing and posting food photos (food porn) has become a cultural phenomenon that can benefit both customers and restaurants alike.

Install an Instagram plugin on your website that will automatically post any photos that are tagged with your restaurant’s hashtag, and suddenly, your guests are creating buzz for you.

Make sure your hashtags and restaurant handles are displayed on tabletop tents and menus to make them easy to share. If you add a contest aspect where you reward customers for the best weekly post, then people will want to get in the game.

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Having a loyalty program can help you get more repeat business and drive success for your restaurants, and the right restaurant POS can help you create and manage one that’s right for your restaurant.

Learn about Marketing 360®’s Point of Sale software, and see our plans and pricing.

Originally published on 1/5/17