For both customers and businesses, loyalty programs pay off.
Customers primarily join loyalty programs because they want to save money. For instance, if they accumulate enough points, they can earn discounts on products and services.
For restaurants and other businesses, loyalty programs help attract and retain customers. Plus, members of loyalty programs tend to spend more money with a brand. A 2020 survey by consulting giant McKinsey & Co. found that members of paid loyalty programs are 60% more likely to spend more with the brand after signing up for a program, and that members of free loyalty programs are 30% more likely to do so.
The Power of a Built-In Loyalty Program
If your restaurant wants to add a loyalty
Businesswomen Paying Bill At Meeting Around Table In Coffee Shopprogram or already offers one, how do you streamline the program so that it’s a benefit rather than a burden? One answer: Use point-of-sale software with built-in loyalty functions.
Cloud-based POS systems simplify signups for loyalty programs and simplify the tracking of those programs. In addition, countertop and tabletop devices enable diners to quickly enroll in a loyalty program when they close out their tab. And once a customer has joined a built-in loyalty program, it’s easy for them to keep on top of their rewards.
Another great feature of a built-in POS loyalty program: A restaurant can customize it to offer one-of-a-kind rewards, special menu discounts and other unique perks.
Technology Eases the Labor Burden
A built-in loyalty program provides another advantage that is growing in importance. Amid pandemic-triggered labor shortages in the restaurant industry, it’s more vital than ever to incorporate technology into your operations to improve overall productivity.
So, for instance, if your loyalty program is built into your POS, this dramatically reduces the time it takes for an employee to sign up a new member of your program. It also cuts down on the time required to help current members with their accounts.
Built-in loyalty programs can be coupled with online ordering, at-the-table ordering contactless payments, at-the-table ordering, QR menu codes and other innovations that increasingly are being demanded by pandemic-era customers.
The Popularity of Loyalty Programs
Amid dramatic shifts in the restaurant business, more and more customers expect restaurants to offer technological convenience, and this includes tech-enabled loyalty programs.
A report released in February 2022 by PYMNTS and Paytronix Systems shows 48% of restaurant customers had used a loyalty program in at least one type of restaurant during three survey periods.
“Today’s consumers are convenience-focused and digitally savvy — and those key characteristics influence how and where they choose to dine,” according to the report. “Loyalty program usage is strong, but consumers’ interest in participating in such initiatives may be mitigated by how easy participation is and whether find the overall ordering process frictionless.”
In other words, you could be leaving money on the table if you don’t rely on a built-in POS loyalty program and other technological advancements that clearly influence consumer behavior. If nothing else convinces you of the need for a built-in POS loyalty program, consider this: The report says consumers who use loyalty programs are willing to spend more at local restaurants to earn specialized discounts.
A built-in POS loyalty program could be one of the items on your tech menu that makes a difference between a customer patronizing your establishment and a customer patronizing your competitor’s establishment down the street.