A loyalty program is a restaurant marketing strategy a business uses to encourage customers to return.
This can be something simple like a coupon or can be a fully-functional app or a store credit card. Nowadays brands using Cashback loyalty program as the best loyalty programs.
But, not all loyalty programs are a successful loyalty program…
You wanna know the reason? Read this blog at the end 🙂
To start a restaurant requires a vision, the perfect location, and lots of capital. And to stay in business demands leadership, experienced staff, a delicious menu, and a little bit of magic.
Implementing a restaurant loyalty program is quite easier but making it successful needs more attention and it requires eliminating factors because of a loyalty/rewards program doesn’t work?
Loyalty programs in India often fail because sometimes it doesn’t offer values to customers and making it creative as well as easier!
Let’s us discuss the common reason why loyalty programs fail in India –
1. Creating lame rewards that don’t reflect the customer’s commitment to the brand
This is the most obvious loyalty mistake a brand can make, and it still happens all the time. The most common cause of this is when a business has designed its loyalty program with profits in mind.
2. Poorly calculated reward
Offering generous rewards could put you out of business! And believe us, this happens more often than you might think. in all the excitement of launching a fantastic new loyalty program to boost revenue, increase customer retention, and put your brand on the map, businesses have a tendency to promise the world. They actually fail to balance the rewards with the program’s expenses.
3. Very Specific or Limited Rewards That Don’t Appeal to All Customers
The best loyalty programs offer something for everyone, rather than specific rewards that won’t necessarily appeal to all customers.
4. Stale or Un-enticing Discounts, Rather Than Memorable Customer Experiences
Today’s consumers expect customer experience. These could be tours, hotel upgrades, and restaurant offers. It also creates a more well-rounded and engaging customer experience.
5. Failure to Recognise the Brand’s Most Loyal Customers
Customer accession is important but customer retention is essential. If you reward your premium VIP customers with the status of the same reward as the brand new loyalty program member you’re going to make your existing loyal customers feel unappreciated.
6. Overly Complicated Loyalty Programs
This tends to be an extremely common mistake among brands. The more features and functions you add to your mobile loyalty app, the easier it is for the whole system to spiral out of control and customers will be left confused as to how the rewards program even works.
It may seem contradictory to our earlier points about offering side promotions and tiered levels of loyalty, but it’s all about presenting everything in a clear, concise, user-friendly manner.