If you think brand loyalty is a thing of the past, think again. We hear talk of patrons going from brand-to-brand-to-brand and we just assume that it's because loyalty has jumped the shark when, in fact, the opposite is true. People leave brands because brands aren't giving them a good enough reason to stay. And in no place is those more true than in the quick-serve, fast-casual restaurant space.
So is there anything a QSR in today's market can do to lower the likelihood of a patron exodus in search of a brand that better-suits their needs? You bet. And we'll sum it up here in two words:
Loyalty Program.
Sounds easy, right? Wrong. Get it right and you are forging customers for life. Get it wrong and you're creating profit for your competition. Want to do it right?
Read on to learn 4 things that will help you understand the importance of these programs.
#1. Loyalty programs are also data programs. Data drives a lot of things these days and a loyalty program is no exception. A good loyalty program provides insight about dining behaviors which parlays into designing superior offers that encourage visits on a greater frequency. And frequency is good for any QSR. The data benefits of loyalty programs will only become more important moving forward - especially with the pervasiveness of digital programs that make them easy for people to use - and easy for QSR operators to track.
#2. The best loyalty programs are the simplest ones. Nothing drives away loyalty quite like a difficult-to-use loyalty program. When the rules and rewards of a loyalty program are easy - and the program itself is easy to use - then you have a good program for your customers. Make it easy to join and make sure it's worth it for someone to be an active member. Giving away too much in your loyalty program will eat into your bottom line. Giving away too little will take away from potential profits.
#3. Your loyalty program must be members-only. What good is a loyalty program if you're using the same messaging and offers with those who are not members. Blanket offers and messaging is simply known as a discount. Loyalty programs must operate above and beyond mere discounts to include things like: priority reservations, free appetizers or dessert, faster accumulation of points, etc.
#4. Good loyalty programs are targeted. If a QSR can't look at a loyalty program member and determine what kind of offer they'd like to receive, then that loyalty program is of little-to-no use. If a member is continually adding on a stand-alone menu item every time they order (an additional small drink, or side order of onion rings for example) then doesn't it make sense to use that data to generate a relevant offer?
Loyalty programs come in all shapes and sizes. The right loyalty program for a particular brand must be thought out and customer-focused. Out-of-the-box, third-party solutions are almost never a good fit for today's multi-dimensional QSR brands.
Think about your personal favorites when it comes to loyalty programs - and think about why they're a good fit for you. If you've got a favorite program, tell us why it keeps you coming back in the comments.
