How loyalty programs help restaurants retain customers

In today’s world, a consumer has more choices than ever before for any potential purchase. Competing brands are using increasingly innovative methods to target the same user. Often outspending each other for the consumer’s attention, thus increasing the value of customer loyalty. It costs five times more to target a new customer, making customer retention a priority for all businesses. Pricing, packaging, customer service, reviews, etc. are all important factors in building a loyalty programs help restaurants retain the customer base.


Loyalty programs aren’t the only factor responsible for unwavering loyalty from customers. An added incentive to support a business positively impacts a purchase decision. Today, more than 90% of companies run a customer loyalty program in some form. The value of building strong customer relationships has been evident throughout the pandemic, with businesses relying on loyal customers more than ever before. However, customer loyalty can never be taken for granted in a constantly evolving digital environment.


Brands are experimenting with different loyalty programs to cater to a new generation of users with an experience that keeps them engaged. Personalized discounts, free deliveries, special menu items, freebies, and such methods are implemented by brands to increase customer loyalty. There are various established brands like Sephora, Domino’s, and Starbucks. These brands have paved the way for loyalty programs and even updating them frequently to keep things fresh. Often, brands remain hesitant to start a loyalty program because of the wrong notion about costs and effectiveness.


Here’s how brands can benefit from loyalty programs.

 loyalty programs help restaurants

Boost Revenues

Loyalty programs help increase your profits. According to a recent survey, 49% of customers admitted to spending more after joining a loyalty program. This can increase a brand’s average order value. The Loyalty Effect concludes that an increase in customer retention by just 5% can lead to a 25% to 100% increase in profit for your company. If people find value in the loyalty program, they are more likely to become recurring customers and boost customer lifetime value.

Attract New Customers

Loyalty programs have an impact on more than just customer retention. In fact, Offering discounts, perks, referral benefits can provide an incentive for new customers to join the loyalty program. Easy access to the loyalty program can also serve as the best way to invite new customers since 69% of customers feel most schemes are too hard to join and make it difficult to earn rewards. 78% of customers are more likely to switch to a brand offering a better loyalty program.

Access Invaluable Data

Data generated by any business remains an untapped source for most brands to propel a business to new heights. Brands can use data to personalize customer experiences based on their preferences, order history, and even abandoned cart frequencies. This data can also be used to design targeted and effective marketing campaigns. In the digital age, customer data is crucial for any business, and failing to use it can make or break a brand.

Brand Advocacy

Word-of-mouth marketing has been the cheapest marketing tool available to brands but not all brands are able to achieve a high level of trust from customers that turn them into brand advocates. Customers who swear by a brand’s products or services are more likely to tell their friends and family about it. A positive review left by a happy customer on public platforms can result in more business directly.

 loyalty programs help restaurants

The benefits of loyalty programs are immense for small and medium businesses and far outweigh the costs, especially in the long term. Additionally, YumzyX has an in-built customer wallet for each customer who orders from a restaurant. Moreover, Restaurants can use discounts, cashback, third-party coupons, and even target frequent customers to reciprocate their loyalty. Learn more about our features that help you understand how loyalty programs help restaurants retain customers.

You can reach out to us to know more or Sign up now to start your own loyalty program and reap the rewards.

Arjun Saini

Arjun writes about emerging trends in technology and how it impacts the hyperlocal landscape in India. He likes drinking too much coffee and makes sure the coffee machine works harder than he does.

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