Glossary of Marketing Terms

How does a restaurant loyalty platform work?  

Restaurant loyalty programs work by offering customers rewards for their business, typically in the form of points, free items, or exclusive perks.  

Here's a breakdown of the mechanics:

Earning rewards

• Purchases: This is the most common way to earn points. Customers accumulate points with each visit or based on the amount they spend.
• Engagement: Some programs reward points for actions beyond purchases, like signing up, leaving reviews, or following the restaurant on social media.

Tracking

• Digital: Many programs are app-based, where customers can access their account, track points, and redeem rewards.
• Physical: Traditionally, programs used punch cards where customers get a stamp with each purchase. These are being phased out in favor of digital options.
• POS Integration: For both digital and physical programs, restaurants often link the loyalty system to their point-of-sale (POS) system to automatically track purchases.

Redemption

• Points: Customers can redeem accumulated points for free items, discounts on meals, or even merchandise.
• Tiers: Some programs have tiers where customers unlock better rewards as they reach higher point thresholds.
• Birthday/special occasion perks: Many programs offer special rewards like birthday freebies or exclusive menu items during celebrations.

Data collection

• By tracking customer activity, restaurants gain valuable insights into their preferences. This data can be used for targeted marketing campaigns, personalized promotions, and understanding their most loyal customers.

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What are the key features of a restaurant loyalty platform?  

Restaurant loyalty platforms come with a variety of features to incentivize customers and benefit the restaurant. Here are some key ones:

For customers

• Reward system: This is the core, with options like points for purchases, tiered programs for increased benefits, and bonus points for specific actions.
• Mobile app integration: Many platforms offer a mobile app for easy program access, points tracking, reward redemption, and potentially even mobile ordering.
• Personalized offers: Based on purchase history and preferences, some programs deliver targeted promotions or discounts.
• Birthday and special occasion rewards: Freebies or exclusive menu items on birthdays or anniversaries can add a special touch.
• Gamification: Earning points or badges can make the program more engaging, especially for younger demographics.
• Social media integration: Connecting the program to social media allows for sharing and potential bonus points for following the restaurant online.

For restaurants:

• Customer relationship management (CRM): Tracks customer data like purchase history, preferences, and demographics for targeted marketing.

• Data analytics: Provides insights into customer behavior to optimize rewards, promotions, and menus based on what resonates with your audience.
• Targeted marketing: Allows for sending personalized emails or app notifications with special offers to specific customer segments.
• Feedback mechanism: Some platforms offer built-in surveys or review options to gather valuable customer feedback.
• Order history and preferences: Provides insights into popular dishes and allows for personalized recommendations to increase order value.
• Inventory management: Understanding customer preferences can help with inventory planning and minimizing food waste.

Additional features:

• Referral programs: Incentivize existing customers to recommend the restaurant to friends and family.
• Pre-ordering and online reservations: May be integrated with the platform for added convenience.
• Payment integration: Allowing secure in-app payments can streamline the ordering process.

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