Running a successful restaurant is more than just offering great food and service—it’s about building lasting relationships with your customers. One of the best ways to keep your customers coming back for more is through a loyalty program. Loyalty program software for restaurants has become a must-have tool for increasing customer retention and boosting revenue.
But why exactly do restaurants need loyalty program software, and how can it help improve customer retention? Let’s explore why loyalty programs matter, how software can simplify the process, and the benefits of implementing this technology into your restaurant’s strategy.
The power of customer retention in the restaurant industry
Let’s start with a simple fact: acquiring new customers is much more expensive than keeping your current ones. Studies show that retaining an existing customer can cost five times less than acquiring a new one. And loyal customers are more likely to visit your restaurant regularly, spread the word, and even become brand advocates.
According to a survey by Accenture, 77% of consumers say that loyalty programs make them more likely to stay loyal to a brand. This statistic rings true for the restaurant industry as well. The more a customer feels appreciated and rewarded, the more likely they will return, recommend your restaurant to friends, and increase spending.
In fact, research from Harvard Business Review suggests that increasing customer retention by just 5% can boost profits by 25% to 95%. These numbers show that loyalty isn’t just nice to have—it’s an essential part of a profitable business strategy.
How Loyalty Program Software Improves Customer Retention
In the past, loyalty programs were often limited to punch cards or handwritten logs—methods that weren’t efficient or easy to manage. But today, loyalty program software for restaurants has taken customer retention to the next level by making it easier to track, reward, and engage customers.
Automated tracking and rewards
One of the biggest advantages of loyalty program software is the ability to track customer visits automatically. This eliminates the need for customers to remember to present a physical card and ensures that no visit goes unnoticed. With software, you can automatically reward your loyal customers after a certain number of visits or purchases—manual input isn’t required.
For example, if a customer spends £50 at your restaurant, they could receive a reward like a discount on their next visit or a free dessert. A loyalty program software for restaurants keeps track of all this activity behind the scenes, so you don’t have to worry about losing track of rewards or data.
Personalisation
Personalising the customer experience is a game-changer for retention. Loyalty software allows you to tailor rewards and offers based on individual preferences and behaviours. Whether it’s a birthday treat, a discount on their favourite dish, or an exclusive offer based on their order history, personalised rewards make customers feel valued and more likely to return.
Convenience
The more convenient you make it for customers to engage with your loyalty program, the more successful it will be. With loyalty program software, customers can sign up online, track their rewards via a mobile app, and redeem rewards with just a few taps. No more worrying about lost or forgotten loyalty cards. Plus, some programs allow customers to share rewards with friends, turning them into brand ambassadors.
Key features to look for in loyalty program software
When choosing the right loyalty program software for restaurants, there are a few key features you should look for to ensure it aligns with your needs and goals.
Customisable rewards
Not all customers are the same, so it’s important to have a system that allows you to create flexible rewards that fit your brand. Whether you want to offer a free meal after a certain number of visits or reward customers with points they can use for various perks, customisable rewards give you the freedom to design a program that works best for your customers.
Integration with POS systems
If your loyalty program software doesn’t integrate with your existing restaurant’s EPOS systems, you could end up with a disjointed experience that’s harder to manage. Look for a loyalty program software for restaurants that seamlessly integrates with your POS system to ensure customer data is captured automatically and rewards are applied quickly and accurately.
Data analytics and insights
The beauty of digital loyalty programs is the wealth of data they provide. With the right software, you can gather insights into your customers’ spending habits, preferences, and behaviours. These insights can help you make data-driven decisions, like crafting targeted promotions or identifying your most loyal customers so you can provide them with extra incentives.
Benefits beyond customer retention
While customer retention is the primary goal, loyalty program software for restaurants can also have several other benefits that help your restaurant grow and thrive.
Increased average spend
A well-designed loyalty program can encourage customers to spend more per visit. For instance, offering customers points for every pound they spend can incentivise them to order more to reach a reward threshold. This boosts your average revenue per customer while making them feel like they’re getting more value for their money.
Customer engagement
Loyalty program software can also help increase customer engagement. You can send targeted emails or push notifications with personalised offers, promote special events, or invite customers to join an exclusive VIP program. This keeps your restaurant top-of-mind and builds stronger relationships with customers.
Building a community
A great loyalty program doesn’t just reward customers—it can also create a sense of community. By offering rewards that go beyond discounts (like access to special events, member-only experiences, or early access to new menu items), you create a space where your customers feel like they’re part of something bigger. This sense of belonging can turn first-time visitors into lifelong patrons.
Success stories and how WITMEG can help
Numerous restaurants around the world have successfully implemented loyalty program software and seen significant benefits. Let’s take a look at a couple of examples.
- Greggs – This popular UK-based bakery chain saw an incredible rise in customer engagement and retention after launching its digital loyalty program, Greggs Rewards. The app allows customers to collect points for every purchase, which can be redeemed for rewards like free food and drinks. Since its launch, Greggs reported a significant increase in app downloads and customer visits, proving that a simple, user-friendly loyalty program can create long-term value.
- Starbucks – Starbucks has one of the most well-known loyalty programs in the world, and its success is largely due to its mobile app and seamless integration with restaurant EPOS systems. Starbucks Rewards allows customers to earn stars with every purchase, which can be redeemed for free drinks, food, and other perks. The app also gives Starbucks valuable insights into customer preferences, which helps them create personalised offers that encourage repeat visits.
At WITMEG, we understand the importance of creating a customer-centric experience, and we’re here to help you implement a loyalty program that fits your restaurant’s unique needs. Our loyalty program software integrates smoothly with restaurant EPOS systems, ensuring a hassle-free experience for you and your customers. With customisable rewards, personalised offers, and powerful data analytics, WITMEG can help your restaurant improve customer retention, increase engagement, and drive more revenue.