Foodservice Updates is designed to help foodservice operators keep on top of all the industry news and provides tips for keeping business running smooth. We endeavor to provide the latest tips and solutions to keep you in the know.
Do you need to look at loyalty in a new way?
Loyalty programs have become critical tools for restaurants to connect with guests – but they are also easy to get wrong. Even giant brands have run into trouble when their loyalty programs made changes that required participants to use significantly more accumulated points than previously needed to collect rewards. At the other end of the spectrum, a number of brands that jumped into loyalty marketing via newer Web3 technology – using blockchain and NFT to deliver experiences that connect with consumers in new ways – have also hit some bumps in recent months. Succeeding with loyalty is likely less about the specific tools you use and more about how well your business truly understands the habits and cravings of its guest segments. At a time when businesses are eager to target millennials (who eat out more than any other generation) and Gen Z, demographics that prize authenticity, loyalty programs in all of their forms need to feel trustworthy. Nowadays, that’s about building community with guests where they spend time – both online and in-person – in ways that make them feel understood and appreciated. For a good number of brands that are targeting Gen Z consumers, that could mean collaborating with complementary brands to connect with people in a virtual space like an online game. But just like the messages you send to your database of guests, one approach doesn’t fit all.
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