Loyalty programs – key revenue driver for quick-service restaurant chains

The Power of Loyalty Programs

Fostering brand loyalty stands out as the most effective strategy to make the most of existing customers, increase food orders, and grow the overall lifetime value of customers.

We see that our partners at S4D, upon implementing our loyalty program, have experienced a fourfold increase in orders per year.

4 benefits of loyalty programs:

• Attract more customers

Measuring customer stickiness can help you develop a better understanding of what retention means to your customers – why do they come back, why do they buy?

Customers normally remain loyal to a QSR that can provide value, convenience, and ideally omnichannel personalization. In that way, loyalty programs are key to motivating customers to engage with your brand and not with your competitors.

Rewarding customers through an easy-to-use loyalty program helps to improve the perceived brand value of a QSR, keeping your business on top of your customer’s minds.

• Improve customer retention

It is relevant to create loyal customers since research shows that it costs 6 times more to attract new customers than to retain existing ones(Business 2Community, 2022).

Loyalty programs have the potential to significantly improve customer retention, by converting occasional consumers who order once in a while into loyal customers who order regularly.

It’s important to recall the fundamental factors that foster loyalty among most consumers: the sense that they not only had a positive experience but also obtained what they required quickly and efficiently.
Making sure your current customer base orders more often directly with you is key in improving the profitability of your restaurant chain.

• Offers based on customer data

Having full control over the customer data from your website and app is essential for delivering a personalized digital loyalty program that entices customers to return to your brand again and again.

When customers enroll in the loyalty program, they provide insights into their behavior, allowing businesses to compete with third-party delivery platforms that retain valuable customer data.

It is important to provide incentives such as loyalty programs to generate repeat business on your platform.

• Improve communication and strengthen your brand

Loyalty programs can elevate your brand and enhance customer communication. Consistent updates on rewards and exclusive offers create opportunities to interact with customers, fostering a stronger relationship between the brand and the customer.

Trenta Pizza is an example of how loyalty programs can be of benefit to the business while improving customer relationships.
With all the customer data, the team can send feedback forms via email, SMS or even call their customers regarding their order experience.

Key Features of S4D’s Loyalty Program

The S4D loyalty program includes various levels:

• Points: Grant points based on amounts spent or based on order value ranges
• Tiers: Tiers based on points earned or based on spending
• Rewards: People can claim using points
• Promotions: Discounts per tier; granting points based on time, channel, or specific products

Understanding the best solutions always starts with the customer and the S4D loyalty program makes a seamless customer experience possible.

Looking to the future…

Building a loyalty program is essential if you want to keep your customers engaged with your brand.

As the food industry is known as fast-paced and ever-changing, the QSR needs to recognize its ability to harness the full potential of the next generation of consumer loyalty, empowering them to take advantage of this opportunity.

The loyalty module in S4D provides you with the right tools to foster a strong relationship, reward loyalty, and enhance customer lifetime value in the long term.