How Restaurant Loyalty Program Can Increase Average Order Value of a Customer?
When we were a kid, we love to earn stars, points for better performance in school right and we used to perform well with the intention to earn some more. That’s what a Customer Loyalty program does…You wanna know how?
80% of the business of a successful company comes from 20% of its loyal customers.
Restaurant loyalty program encourages customers to come back and do more purchase in order to earn more rewards.
Here i am giving you an example –
Paytm offers cashback right? Recently, paytm offer 200 Rs. cashback on Kabir Singh movie tickets online.
What’s the actual purpose of paytm is to bring traffic on the platform and bring repeat sales.
Similarly, this trend of marketing is using in the food industry. Restaurants also can entertain loyal customers to come and purchase more. Loyalty Programs increases customer visitation frequency to a restaurant on an average of 35% and likely to spend 46% more with companies that have loyalty programs.
This is why restaurant loyalty programs have a high potential for encouraging repeat sales. In fact, famous fast food chains like Starbucks and Dunkin’ Donuts are making millions by implementing their own loyalty programs.
Bingage cashback reward program providing E-wallet features where a Restaurant can create every customer’s separate wallet and can give cash back on each transaction.
Restaurant loyalty programs are now trending in the food industry to generate more customer’s traffic and business revenue!!! Many restaurant owners are turning toward rewards programs to get customers back and make them a regular/ loyal customer.
Benefits of Restaurant loyalty program –
Before proceeding, let’s see important stats related to showing the importance of more loyal customers.
Improving guest retention rates by 5% through a loyalty program can increase profits by 25–95%
Word of Mouth: 55% of loyal customers recommend their friends and family about your business (Thanx)
Easy upselling: The probability of selling to an existing customer is 60–70%, and for the new one, it’s just 5 to 20%
Your existing customers are 5 times likely to try your new menu offering.
1. Increase Average order value
Bingage Cashback rewards program will help to boost AOV by encouraging additional spending with cashback.
For example — Suppose, you are giving 20% cashback on order value above 500 Rs then this would give a reason for the customer to spend more than 500 in order to get cash back.
Let’s take an example of an e-commerce company — Flipkart offers free delivery on orders above 500 right, it is a technique to increase order value of a customer by providing them with free delivery.
This provides a great return for you because it carries a high value for your customers.
2. Customer Retention
The loyalty program gives your customer “A reason to return”, For example, if I have Rs. 200 cash back on a particular cafe, before thinking for another restaurant, would go to that place where I can use the remaining cashback. Bingage wallet is a closed wallet, means the customer can only redeem wallet cash to that restaurant only.
This way loyalty programs help in customer retention in restaurant and keep the customer coming back
3. Bring new customers
A good rewards program can attract new customers in different ways. Loyal customers recommend your business to their families and close friends. They provide you with new business. Customer loyalty programs make loyal customers and these loyal customers are work as your brand ambassadors.
Conclusion –
74% of loyalty programs participants agree that they are likely to do business with a brand that offers a customer loyalty program. if you want to scale your restaurant business and get ahead of competitiors, loyalty program for restaurant is the best marketing strategies you can go for.
