Loyalty Marketing Basics for Busy Restaurant Managers
One essential element to connecting with new customers and building long-lasting relationships is loyalty marketing.
Think of marketing as your formal introduction to the community. You want to get your name out there and showcase your services, but if marketing isn’t your specialty, you may have some reservations.
What do you think of when you hear the word marketing?
- “I’m too busy and don’t have time.”
- “Marketing is a waste of money.”
- “I don’t know where to begin or why I need to market my business.”
There’s no right or wrong answer.
Marketing allows you to reach new audiences, bring in additional customers, and retain the customers you’ve won. Think of your marketing as a first impression – if you want to make a great impression, you must put in consistent and sustained effort every time people hear from you. If you're doing marketing well, you have to think of every interaction as the opportunity to make a great first impression.
Effective marketing attracts ideal customers and retains loyal patrons. The ultimate goal of marketing is to build familiarity and trust that attracts people to your restaurant and maintains a long-lasting relationship with them. Your branding should represent your values, beliefs, and unique identity. Your marketing invites people to find comfort, joy, and delight in your restaurant (and, of course, delicious food!)
Diving Deeper Into Restaurant Marketing
Using marketing to share who you are authentically is a powerful and successful way to grow your business. Marketing communicates your offerings to valued customers. Marketing goes beyond hanging a sign in your front window or promoting your business with a billboard. Effective marketing invites people into a meaningful story and highlights the unique experience you provide for all who walk through your doors. You're telling the world that this is who you are and that you are ready to deliver a stellar experience.
Promoting characteristics that align your business with the right customers will nurture a genuine relationship and keep them coming back for more when you deliver on your promise. For instance, if you own a family-owned pizzeria, share what people will experience when they dine in or take out with your community. Let them know your restaurant is a cozy place for families to enjoy a meal together. When people hear “family restaurant,” they think of belonging, community, and comfort.
Why Marketing Is Essential for Your Business
There are several reasons why marketing is essential to growing a successful restaurant business:
- Engages customers
- Connects your business with the right people (paying customers!)
- Focuses on your consumers' overall wants and needs
- Builds your restaurant or bar's reputation
- Creates and nurtures a relationship between you and your patrons
- Shares your menu, special offers, and events with customers
- It makes people aware that your restaurant is ready for their business.
How do you stand out and attract the right consumers?
People are bombarded with advertisements daily on social media, streaming platforms, and websites. The overabundance of new products and services reduces consumer interest. Create a plan to set yourself apart from the competition by understanding your target demographic and curating content that appeals to them.
Analyze your frequent customers to understand who's attracted to your business. Once you know your audience, you can ensure your marketing efforts encourage them to visit more often and give insight into who might be attracted to your location, menu offerings, or ambiance. For example, Wine Down & Sweets Café, a Cleveland-Ohio café and a wine bar, emphasizes its ambiance. It’s a place where “good friends go to share food, wine, and desserts.”
The purpose of marketing is to build trust. You can measure the level of confidence by the loyalty of returning customers. To keep your tables full and servers busy, devote some marketing to bringing in new customers (but be warned: this can be costly and time-consuming!). After you’ve won over a customer, keep them coming back by nurturing the relationship and their loyalty.
Building Restaurant Loyalty Through Marketing
In “Are You Speaking the Wrong Loyalty Language,” brand expert Denise Yohn highlights
“Over a third of customers say they would not be loyal to a brand if it weren’t for the brand’s loyalty program, according to Bond Brand Loyalty. Bond also reports 68% of Millennials wouldn’t be loyal to a brand without a strong loyalty program. Research by talech shows 87% of consumers want a customer loyalty program. So it’s no wonder 91% of companies have some sort of customer engagement or loyalty program (Experian).“
You can tap into brand loyalty as a restaurateur by nurturing your guests through a loyalty program. Loyalty programs offer prizes, or rewards, for frequent purchases. Think of it as a customer retention plan with the potential to boost sales and make your restaurant a staple in the neighborhood. In addition, loyalty programs are an excellent way to reward people for choosing your business through exclusive deals. There are three benefits of establishing a loyalty program.
1. Loyalty Marketing Sets Yourself Apart From the Competition
A loyalty program offers discounts and specials to patrons. But the key is that it's exclusive to your bar or restaurant!. Many customers decide where they will dine based on how good the loyalty program's deals are. They may think about how the program can help them earn a reward. For example, if there are two frozen yogurt shops on the same street, customers are more likely to choose the shop where they have rewards, as they may receive a freebie after ordering a certain amount of times.
Pay close attention to your competition and look for gaps in their services. For instance, if they're not offering a loyalty program, you can establish one to create demand, leading to a consistent stream of customers. Whatever you do, try to may it uncopyable.
2. Loyalty Marketing Shows Patrons Trust and Gratitude
Loyalty programs show guests you care about them and appreciate their repeat business. Loyalty programs help you develop a long-lasting relationship through trust and gratitude by offering exclusive perks and incentives to reward customer loyalty. Customers see loyalty programs as a win for them. For value-driven or cost-conscious diners, getting a menu item for half off or free can make their day! Implement a loyalty program and show your customers you want them to stick around.
3. Loyalty Marketing Keeps Guests Coming Back
Do you ever wonder how successful restaurants maintain a steady flow of business? Many restaurants use marketing to acquire new guests; these efforts don’t often come with a reliable retention rate. A loyalty program incentivizes customers to return frequently.
With so many dining choices and the cost of dining out, there’s never been more competition for your customer’s attention and loyalty. Loyalty programs take many shapes and forms, so it may be challenging to determine the right one for your restaurant or bar.
Look at the following options to see if they're right for you.
Four Loyalty Program Ideas to Increase Sales
1. Mobile Loyalty Program
Establish a mobile-based loyalty program to boost your online ordering presence and customer engagement. An app is convenient and allows customers to order from your business efficiently. It's also an excellent way to communicate your latest specials, encouraging users to stop by.
2. Gift Cards
There's nothing like a gift card to draw diners to your restaurant or bar. Instead of viewing the dining experience as an extra expense, customers may view it as a pre-paid treat. Gift cards are popular throughout the holiday season, so advertise them on social media and by email. Offer them the gift of enjoying your restaurant or sharing it with friends.
3. Loyalty Point Rewards System
A point rewards system is a fun way to interact with your customers while having them earn a reward, such as a free dessert or a beverage on the house. A point rewards system is both engaging and low-risk. Typically, once a diner signs up, there's an “if-then” condition presented to them: If you order a certain number of times, you will receive a reward.
4. Referral Programs
Start a referral program with discounts and rewards for diners who refer new guests. Customer referral programs incentivize guests to return and open the door for new people. Social media is an effective tool for marketing, but nothing beats word of mouth. When someone receives a recommendation from a trusted friend, they’re more likely to follow through. Take advantage of your email marketing for this option, and be prepared to see some new faces.
Loyalty programs are popular among companies for capturing audiences and maintaining a solid following. For instance, Starbucks Rewards is a prominent app that offers loyalty points through stars, customer lifetime value, and seasonal favorites.
For example, fast-service restaurants like Chipotle offer a successful loyalty program called Chipotle Rewards, allowing customers to earn points to get a free entree. In addition, they provide challenges, new menu items, and rewards for purchasing dishes on particular dates.
Promising results from these loyalty programs show that any restaurant can adopt a loyalty program and grow its customer base.
Start testing different programs to see what works best for your customers (or ask your local POS dealer which programs are successful for their customers). Then, once you select and establish the best loyalty strategy for your restaurant, it's time to spread the word. That's where marketing comes in. Take this opportunity to tell others about the program and get customers excited to sign up for it. Create and implement a simple marketing plan with these steps:
- Announce your loyalty program on your website
- Promote your loyalty program on social media and inside your emails
- Post signs on tables, menus, and front windows
- Design menu inserts or business cards for your waiting area
- Include the offer at the bottom of your receipts
Once you’ve announced the loyalty program and begin seeing success, keep it relevant for customers by implementing tactics that will encourage them to return. The idea is to provide an overall positive experience from the loyalty program to the in-person and online experience. Here are six ways to boost retention rates in your restaurant.
How to Improve Customer Loyalty
1. Extend Quality Throughout Your Business
To boost loyalty, you must first ensure quality in your business, from food to service to ambiance. If you want customers to return, it's about drawing them in and making them feel welcome. For example, you can transform your dining atmosphere by adding warm lighting, spicing up the decor, and maintaining a clean dining room. A tidy restaurant makes guests feel safe and comfortable.
2. Prioritize Socializing in the Dining Experience
Socialization creates a more personable experience. Have servers go above and beyond by encouraging them to have light-hearted conversations with customers. Incorporating more discussions is an excellent way for patrons to get familiar with servers and build a lasting relationship with your restaurant.
You can also engage with customers online through social media and emails. When you provide a well-rounded experience for your guests, you can boost your customer retention rate.
3. Determine What Sells and What Doesn’t
While you may rely on guest check averages, this paints a small picture of your sales. So go ahead and ask questions, even if you receive disappointing responses.
For example, consider how many of these dishes were sold during peak hours if you're curious about an appetizer or entree performance. If you see low numbers, ask yourself why this is the case.
Asking essential questions allows you to find new ways to improve your operations and boost profits. For instance, you may try to promote your appetizers more by word of mouth, social media, or a loyalty program.
4. Make Sure Every Moment Counts
A dining experience is like a movie – it has a beginning, middle, and end. Although your staff may provide a memorable experience while guests are dining, the beginning and end of their in-person stay are just as important.
Think of your restaurant as a theater where people come to have an experience to remember and leave with a story to tell.
For instance, it’s easy to overlook a customer's experience when checking them out because you want to flip those tables. Keep in mind that their perception of your business can change in an instant.
Avoid disappointing diners by creating a seamless process. For example, you can implement a pay-at-table option to prevent long wait times and allow customers to settle their bills at their convenience. You can also make the paying process easier by enabling guests to split checks, putting less pressure on staff members, and giving diners the option to pay their way. It’s all about finding ways to provide guests with a hassle-free experience, so they'll be more inclined to return.
5. Provide a Customer-friendly Online Experience
Have you noticed that your experience with a restaurant’s website or web ordering solution affects your perception of the restaurant? A negative online experience can damage your customer relationship and make them less likely to do business with you. So while focusing on in-person dining is vital, remember your online patrons. With online ordering on the rise, now is the time to ensure your web systems are easy to navigate and glitch-free.
Make the ordering process straightforward with web ordering, user-friendly software that integrates with your POS system and website while reducing call wait times. Web ordering simplifies the ordering process, reducing errors and allowing customers to place orders without receiving busy signals. As a result, you’ll improve your customer experience, ensuring each patron continues to order from you.
6. Gain Feedback From Customers
Customer surveys give you insight into what's working and what isn't. The feedback helps you improve operations for your staff, elevating your dining and online experience. Patrons always appreciate being heard, so show them you care by listening to their reviews and taking action.
You can create a customer satisfaction survey with multiple-choice questions and open-ended answers. However, if you feel providing a survey after a dining experience is too invasive, know that you can also send it in a later email.
Who doesn’t love insider access and information? A survey is a great way to collect customers’ mobile phone numbers and get their permission to share special offers and incentives.
Marketing Tips for Bars and Restaurants
Many business owners see marketing as an additional expense instead of an essential component of business operations. Of course, advertising can be costly, but there are effective methods for marketing on a budget. For example, you don't necessarily have to pay for a billboard showcasing your offerings. Instead, try implementing the following strategies to connect with your customers without breaking your budget.
Use Social Media Platforms Effectively
Promote your restaurant with high-quality pictures, reels, and captions. Online audiences love getting a glimpse into your restaurant’s ambiance and food, so get creative with sharing your restaurant or bar’s menu and atmosphere. Make it simple and easy for followers to have access to essential information like:
- Your phone number
- Your address
- Your business hours
- Your website link
- A brief description of your restaurant or bar
- Your business logo (so it’s easy to recognize your establishment when they arrive)
- Your entire menu
Always cross-check the basics: Who, what, when, where, and why. You can also connect with your online community by posting about team members, giving your audience an inside look into your business, and making them feel like an extended family.
Utilize Email Marketing the Right Way
Emails are effective for connecting with your loyal customers. As you start email marketing, the right way, remember to be consistent and tell an intriguing story. When it comes to emails, you want to ensure your audience is engaged. These days, people want more than a sales pitch — people love to buy — but they hate being sold to. Instead, people want relatable content. To deliver valuable emails that resonate with diners, share messages that align with your restaurant and their interests.
If you're not sure about email topics, here are a few ideas:
- Promote specials and new menu items
- Invite subscribers to an exclusive party
- Introduce staff members
- Share your restaurant's story and how you got started
- Send out DIY recipes of house favorites
Emails entice subscribers to visit your restaurant or bar. But, even if they don't interact with your emails, a little reminder is powerful enough to direct them your way.
You can also use text-based marketing to build your team, gain customer information, and keep tables filled. Here’s how some restaurant owners experience success with this practice:
- Let your servers know you’ll reward whoever collects the most mobile numbers weekly. Encourage servers to be creative with how they collect phone numbers: Place a jar on the table, ask for it on the receipt
- Get permission from customers to text them with special offers
- Use a mass-texting system to connect directly with customers when you need to fill tables!
Keep Your Branding Consistent Online
Accurate information makes for the best first impression. With most customers consuming information online, ensure your business details are up-to-date on third-party sites such as Yelp, TripAdvisor, and your website. Revise your operational hours, menu items, prices, and health and safety guidelines whenever you make any changes.
Create Content on a Blog
Consider marketing your restaurant through blog posts. Blogs are an excellent way to give the online community an inside look into your business. Rather than simply introducing a special, get creative and craft a post to get readers interested in checking out your business. For example, you can write an article on the best margaritas to try at your restaurant, along with dishes to pair them with.
Use blog posts for diving deeper into your menu and getting diners excited to try house favorites. If you already have a blog, consider repurposing old content and updating them with the latest images. Your blog will also give you additional content to share on social media and throughout your emails.
Don't forget to share the articles you publish frequently after you publish on your Facebook, Instagram, and Google Business Profile.
Become a Pillar in the Community
To become familiar with the community, you have to get involved in your community. Participate in farmer's markets, local concerts, and fundraisers. These are great opportunities to be seen by locals and capture their interest.
You can also source produce from local farmers, donate ingredients to the food bank, and volunteer at community events. For instance, if there's a marathon that’s near your restaurant (or even if it’s not), you can leave a lasting impression by setting up a relief station along the course with Gatorade, water, and energy gels — with a sign to let them know which restaurant or bar is giving out the refreshments.
Finally, interact with residents through social media so you can be at the forefront of their minds. Whether your post pops up on their feed or you respond to a follower, they will remember your business when they get hungry.
- Tag customers after you take their photo at the restaurant (with their permission, of course)
- Personalities drive followers more effectively than businesses.
- Interactions have to be about the “locals,” not the restaurant.
Winning the Social Media Game for Restaurants
You can never go wrong with using social media as a marketing tool. It is a budget-friendly way to connect with your online community and grow your business. Although many business owners believe social media is a game of posting pictures and receiving likes, it goes far beyond that. Likes on your social media posts don’t necessarily convert to sales, but quality content can entice people to check out your restaurant or bar. Actual content creation requires time, effort, and energy. So if you're curious about using social media for marketing, here are seven simple ways to make your restaurant more appealing and discoverable.
1. Post High-Quality Pictures
Instagram is a picture and video-based platform that focuses on aesthetics and captures the artistic eye. The key to Instagram is posting high-resolution images that attract new followers. For instance, if you're publishing a food picture, make sure it looks appetizing by adjusting the lighting and providing a clean backdrop. The same rules go for images of your restaurant. You want the photos to look professional and clean.
2. Engage With Followers
One way to attract followers is by interacting with them and posting things that interest them. You can capture their interest by replying to comments, answering questions, and responding to online reviews. Even if you're acknowledging a negative critique, you may positively impact other followers because you take accountability for a situation.
3. Entice Followers by Offering Contests and Rewards
You can incentivize people to follow your social media accounts by hosting contests where users like, share, and follow your account for a chance to win a meal or discount. You can also create a competition to interact with your audience and entice new customers to stop by. It's a creative way to highlight your offerings and boost your online presence.
4. Add Hashtags to Your Post
Hashtags optimize your social media presence and connect your restaurant or bar with related categories. Hashtags are trendy on Instagram, Twitter, and TikTok, so don't shy away from them. For instance, if you're promoting a new beverage at your bar, use hashtags like “#newdrink,” “#drinkspecial,” and “#happyhour.” These hashtags will recommend your business to users interested in these topics.
5. Use Customers for Inspirational Content
If you don't know what to post, showcase customer favorites and popular dishes for your online audience. For example, if someone says your Margherita pizza is the best in town, quote them. A simple review is enough to pique newcomers' interest in visiting your business.
6. Give People a Glimpse Behind the Curtain
Show your restaurant's true colors by giving your audience a sneak peek behind the scenes. As much as people love the result, they also enjoy seeing what goes into the places where they spend money.
Introduce your team, tour your restaurant, or show off new decorations. Giving people a virtual invitation into your restaurant may excite your online community and encourage them to visit.
7. Create or Update Your Google Business Profile
Often overlooked but potentially the most important way for diners to find your restaurant, set up and maintain a free Google Business Profile. When people are searching for a spot to eat, many diners depend on Google to search for the best options near them. With a Google Business Profile, you can control where your restaurant or bar appears in Google searches and on Google maps.
Make it easy for new customers to find your business and enjoy what you offer!
Make Time to Market Your Bar or Restaurant
You might be thinking, “How do I make time for all this?”
Marketing doesn't have to be a one-person show, but you must make marketing a long-term part of your day-to-day operations to keep people engaged and your business growing! If you don't have time, take advantage of the resources at your disposal to streamline the process or hire a marketing specialist, intern, or marketing agency.
Loyalty marketing allows you to establish a long-term relationship with your patrons. While attracting new customers is essential, remember not to neglect your current diners. Their support helps your business thrive, so retention strategies are integral to maintaining a consistent revenue flow.
Without customers, your restaurant will not thrive. Think of marketing as the essential way to create customers, retain loyal customers, and ensure your brand stands out from the crowd.
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