​Loyalty programs that set you apart

Offering a targeted loyalty program will build your customer base — no big surprise there. But how much more effective is it to offer such a program than to not offer a program at all? And with so many businesses offering loyalty programs nowadays, how can you stand out? New research from Accenture Interactive found that members of customer loyalty programs generate 12 to 18 percent more revenue for businesses than customers who aren’t members of a program, Dine Engine reports. What’s more, 81 percent of consumers said they were more likely to continue giving their business to brands that offer a loyalty program and 73 percent are more likely to recommend a brand with a strong program. The report said consumers are more likely to adjust their spending based on a loyalty program by spending more money to earn more rewards. These programs may even help restaurants retain loyal guests during economic downturns when consumers are cutting back on discretionary spending. However, research from Forrester found that more than 80 percent of loyalty programs use currency such as points or miles, which can make it difficult for programs to stand out. To boost your program’s chance of success, it can help to remove the barriers that stand between your guests and the rewards they can earn. Show them a clear path to rewards and try to avoid having them encounter multiple barriers such as having to download an app, remember a membership card or login details at each visit, enter a code or register an account online. Also, take a look at potential experiences you can offer your guests. What memorable events or offers can you provide that won’t easily be replicated by your competitor down the street?