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4 Benefits of Loyalty and Reward Programs for Restaurants in Facing Post-Pandemic Era

2 min read

To escalate the business, restaurants should not only focus on achieving customer satisfaction but also customer retention and loyalty that can be boosted through loyalty and reward programs. These factors are essential for restaurants to survive a pandemic and prepare for the post-covid competition. 

Below are 4 benefits of applying loyalty and reward programs for restaurants in the face of post-pandemic era:  

1. Encouraging Customers to Place Food Orders

In general, loyalty and reward programs help the QSR industry, starting from small to full-service restaurants, to improve their performance. Based on a survey conducted by towards more than 2000 consumers in the US, loyalty and reward programs encourage customers to place food orders by 39%.

2. Increasing Conversion Rates and Saving Cost

Loyal customers spend 67% more on average than new customers. Acquiring new customers can cost at least five times as much as retaining existing customers. In difficult times like this covid pandemic, customer loyalty program members can provide added value to the restaurant. 

Data from in the first Quarter of COVID-19 reveals that the order numbers of registered members were much higher in April compared to March. Focusing on customer loyalty and reward programs is one of the most cost-effective ways to develop restaurant business.

3. Building Personal Relationships

Building an emotional bond and making customers feel loyal show how much we value them. Through loyalty and reward programs, we can find out who shops from us and how we can better tailor service to their needs.

According to data, 66% of people will join a loyalty program if it builds an ongoing relationship. By making them feel cared for and valued through loyalty and rewards programs, we will start to realize the longer-term benefits of their loyalty.

4. Lowering Customer Acquisition Cost

Indirectly, loyalty and reward programs create "brand advocates", the ones who will refer the store to their friends, family, or their followers. Past studies show that at least 92% of people trust word-of-mouth (WOM) recommendations from friends or family more than any other form of marketing.

Additionally, 86% of consumers engage with the brand they are loyal to by spreading the word. The reward system shows how much you value your existing customers. Giving rewards to loyal customers who can bring in new customers is a win-win solution.

Key Takeaway

From the explanation above, it can be concluded that loyalty and reward programs bring many benefits for restaurants. This is a great breakthrough for restaurants to survive this pandemic and prepare for post-pandemic competition.

Streamline your restaurant’s operations and manage business effortlessly with Nimbly.

About Nimbly

Nimbly transforms manual operations audit processes into app-based checklists for front-line workers to generate reports instantly, centralize insights in real-time, and ensure thorough issue resolution.

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