5 Tips for an Attractive Loyalty Pizza Rewards Program
Forbes previously revealed the one metric restaurant owners should follow: the customer lifetime value. It’s the projected amount of money a repeat customer will spend at one business in their lifetime. The principal is that the more repeat customers a business has, the better it will do.
Most successful small businesses have between 60% and 70% return customers. Building this level of loyalty isn’t easy, but many restaurants are starting loyalty programs to build a steady flow of lifetime guests. Not only do customers enjoy the rewards, but they are also proving to be extraordinarily successful sales tactics. According to Nielsen, a well-known market research company, 60% of customers say they are more likely to return to a restaurant because of an appealing loyalty program.
Think about the restaurants and stores you visit. How many of them have a loyalty program that you reap the benefits of? Is the quality of their loyalty program a driving factor in why you keep returning?
Although most major chain restaurants have embraced the sales concept, smaller restaurants are slow to set one up. Loyalty rewards programs are easy to set up through a modern POS system and can have an immediate impact on sales.
5 Tips for Creating an Enticing Pizza Loyalty Program
Too often, restaurant owners and managers make complicated programs or give too little. When the program fails, they lose a great business opportunity. For a pizza loyalty program that entices and retains diners, follow these 5 tips below:
Offer Rewards Simply
Avoid complicated point systems. For instance, if you offer three points for every $14 spent, customers will have a difficult time calculating their rewards. Additionally, offering too restrictive of rewards can be unappealing, such as earning $5 for every $30 spent between Monday and Thursday. Most customers will be unable to keep up with their points, much less remember how many were earned.
Build a simple program where the incentives are memorable and easy to calculate.
Give Guests More of What They Love
The chances are slim that a free salad will see your pizza customers coming back for more. You cannot expect guests to be impressed with a random menu item just because it’s free. For your pizza shop loyalty program to retain loyal customers, give rewards that people love:
- A larger size of pizza
- A free pizza
- Extra toppings
- A free side dish of their choice
- A gift of your specialty sauce
- Free merchandise
Reward guests with the best components of your pizza shop.
Use POS Data to Identify Sales Trends
There are classic menu items that customers will always love, but to build a robust and successful program, use your Pizza POS data to identify sales trends. For example, if you see that customers are mostly families or large groups, offer a pizza bundle for loyalty customers, such as, buy two, get one free. In contrast, if you see that guests tend to order single pizza pies but are picky about their toppings, offer unlimited toppings for loyalty-card holders.
When your loyalty program is about your guests’ demands, they will have a good reason to keep coming back to your pizzeria for more. Identify what customers want from you the most, and start providing it.
What can tracking sales trends through POS do for your loyalty program?
- Identify your customer base – who is frequenting your pizza shop, and how can you market to them effectively?
- Know the busiest times for your shop, offer discounts during specific time windows when business is slow.
- Track loyalty member redemption easily, and see which offers peak your guests’ interests and get them in the door.
Don’t Fix a Loyalty Program that isn’t Broken
Be careful when making changes to a loyalty program that already works. Your sales data and customers may provide valuable input, but learn from Sephora’s mistake of revamping their entire loyalty program and the backlash they received. What was once an exclusive program that rewarded buyers who purchase the most with more than the rest, is now a free-for-all for anyone who visits their store.
When Sephora asked their Beauty Insiders what they wanted to change about the loyalty program, they delivered those changes. Sales dropped dramatically, and upper-tier rewards members started dropping off their radar. In order to make changes, they took away their biggest driving factor, free personalized makeovers. Don’t give up your best product that always drives sales for a new idea that doesn’t deliver sales results.
Always Give a Gift on Birthdays
Monetary rewards are always an appealing incentive, but a birthday gift is downright difficult to ignore. Offering a free dinner or heavily discounted meal for one’s birthday is an extra bonus for guests to keep following your loyalty program. Give extra points for celebrating a birthday the day of, but keep the birthday promotion available for at least one week, so guests have time to enjoy their rewards.
Look at Dunkin Donut’s Perks Program, which is powered by their mobile app. By offering a free medium coffee on customer birthdays, they see great enrollment to their loyalty program. Not only Perks members earn on every purchase, but they also get surprise rewards and gifts for special occasions.
In addition to your regular rewards program, increase loyalty by offering creative rewards. Arrange private wine-and-pizza pairing evenings for loyalty members, or a pizza-making course for top point earners. The options are endless—be creative and include patrons to experience special moments at your pizzeria.
Rewarding customers for being loyal to your brand shares a piece of the pie and creates lasting relationships. Show your commitment to your customers and get them to see your pizza shop as their go-to place to eat out.
Don’t forget to market your loyalty rewards program! Here are some ways of getting the word out:
- Train staff to talk about the loyalty program with guests.
- Create enticing menu items that are exclusive to loyalty guests.
- Talk about the benefits on your social media accounts, and share photos of guests enjoying their rewards.
Loyalty programs are just the tip of the iceberg; you can convert one-time guests into repeat customers with gift cards, too.