Loyalty Untangled

Did you know it can cost up to 10 times more to market to new customers than it does to keep existing customers coming back?  This is just one of the many reasons why it's important for restaurants to have a loyalty marketing plan in place.  How do you motivate customers to spend more?  How do you reward them for visiting more often?  Most importantly, how do you capture information on your customers and communicate with them on a regular basis?

Loyalty and reward programs have been adopted by airline companies, major retailers, hotels and grocery stores for many years.  However, the restaurant industry has been somewhat slow to catching on.  Why?  There are many reasons.  One of which is the perception that loyalty programs are complicated, difficult to manage and costly.  Today, those perceptions just aren't true.  With today's technology, and programs such as nTouch Loyalty that takes the guesswork out of managing a loyalty program, it is both easy and affordable.

Aside from the marketing and customer retention benefits a loyalty marketing program offers, it also increases the value of your business. Most businesses, including restaurants, who have an accurate and working customer database can increase the value of their business by as much as 50%.

Think about it.  If you are selling your business without records of who your customers are, what their buying habits are and without any kind of assurance that they will visit the restaurant after it is sold, how much do you think a potential buyer will be willing to pay?

On the other hand, consider if you have an up-to-date database of the customers who drive 80% of your business, who are part of an ongoing rewards program and who have proven to be loyal customers of your business. How much more do you think a potential buyer would be willing to pay?

The benefits of a customer loyalty program go far beyond what you may think on the surface. Other industries have been very successful in getting consumers to live and die by their reward programs to the point of addiction.  Personally, I am always checking my airline miles and hotel points to find out if I have earned a free stay or a free airline voucher.  Today's consumer is trained to expect something back and be rewarded for their purchases.  Surveys have shown that over 49% of consumers will choose a retail store or restaurant based on the rewards program they offer. That is compared to 59% for the airline industry.  Either way, reward programs make a difference when it comes to consumer choices. 

nTouch Loyalty provides restaurants and retail businesses the ability to offer their own custom rewards program with ease and affordability. The program features fully customized marketing material, 2-n-1 Gift and Loyalty Card processing, automated email marketing, database management, an integrated direct mail and online ordering program and key performance reports that measure new customers, lost customers, frequency, spend and demographics.  It provides everything a restaurant or retail business needs to grow sales, increase ticket averages and improve customer retention.

For more information go to email ntouch@empowermarketinggroup.com.