Restaurant diners are focused on value and experience, and that means that some operators need to adapt to meet the needs of their customers. As part of that process, many restaurants are revamping their loyalty programs to better address those diner preferences.
Today’s consumers are being bombarded with regular LTOs, value propositions, and loyalty programs, which is starting to affect customer satisfaction. Recent research reveals that 68 per cent of diners feel overwhelmed by the number of loyalty programs they’re enrolled in, and that’s resulting in many leaving loyalty programs altogether. Operators need to streamline their efforts and deliver on member expectations to retain enrollment and continue seeing results.
Recently, Tim Horton’s offered Tims® Rewards members who logged into their account and completed an eligible transaction on TimShop.ca during the promotion period, the ability to earn 2x points on that purchase. This encouraged users to visit multiple times throughout the eligibility dates and increase perceived value with more points earned.
Earlier in the year, Starbucks revamped its program, increasing value, personalization, and engagement to their program. The redesigned program introduced “new ways to deepen connection while incentivizing members to stretch for each subsequent level of membership, creating the potential to drive increases in frequency and transactions.”
The fundamental issue with today’s loyalty programs isn’t the concept of rewards; it’s the execution, and generic points-based systems are not building meaningful connections. “The problem isn’t the incentive, it’s the lack of personalization,” observes Anya Sharma, a restaurant consultant based in San Francisco. “Customers want to feel seen and valued, not just rewarded for spending money.”
There are a few steps operators should consider when looking at improving their loyalty plans:
Use the data: Your program offers you insight into member preferences, habits, and spending, and if you aren’t capitalizing on that information, you are failing your customers and your business. Learning more about your customers allows you to add personalization to your program, get to know your guests better, and improve your program.
Ask your members: If you want to know what works and what doesn’t, ask the people who are using the program. Not only does this approach provide you with valuable feedback, but it also allows your members engage and become part of the process.
Commit to flexibility: When you are getting real-time insight, you can make real-time changes. If something isn’t working, change it. Successes come from being able to pivot so you can turn a challenge into an opportunity to improve member engagement and results.
The bottom line is diners are worried about spending, and overwhelmed with all the competing offers claiming better value. With so much competition in the marketplace, seeing success in a restaurant loyalty program means determining what your guests are looking for and finding a way to deliver on that with transparency, authenticity, and sincerity.
