Run the right kind of loyalty program

It’s not enough to have a loyalty program: 59 percent of millennials quit loyalty programs because the rewards were not valuable enough, according to a recent study by Software Advice. Other common complaints: Guests feel like some restaurants string them along too long before they can earn a reward, and they feel bombarded with emails and other notifications. The right use of tech can help. The Rail suggests operators first find ways to clarify the path to rewards. So instead of saying “50 points earns you a free appetizer,” show the guest how many meals she has purchased or points she has earned toward that free offer. If you have a mobile app, integrating mobile payment into it is a bonus because it helps guests speed past the steps typically required to make an online purchase. Finally, when you send notifications, aim to customize them based on the guest’s past buying behaviors to better your chances of translating promotions into sales.