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Guest Loyalty Program, What Is It?
Simply put, a guest loyalty program is an incentive to keep loyal guests returning. Loyalty programs are also a great way to generate revenue without having to spend money on advertising. In addition, these incentive programs let your guest base feel appreciated, resulting in a higher business guest retention.
Why Do Consumers Join Loyalty Programs?Understanding what your guests value is the key to a successful loyalty program. Do your guests value saving money more than the surprises of new menu item releases or invitations to special events? A combination of all these features? By creating a loyalty program that is flexible and centric on your guest base, you are not only generating more revenue for your company, but also creating an intangible relationship with your target customer, where they are able to connect with your brand and believe in your concept.
Interesting Statistics and Trends on Guest Loyalty Programs!
(source: Keap.com business blog)
1) 57.4% join to save money, the other 37.5% join to receive awards 2
2) 5% increase in customer loyalty would increase the average profit for customers by 25% -100% 2
3) Restaurant loyalty programs increase loyalty by 35% 2
4) 76% of consumers think that loyalty programs are a part of their relationship with their brands 2
5) 49% of consumers agree they spend more after having joined a loyalty program 2
Guest Loyalty Programs at Charleston Hospitality Group:
Through analyzing our guest base through both observation and internal softwares, we were able to create a loyalty program that is flexible and appeals to all our guests. We understand that consumer trends are always evolving and understanding our guest base is crucial to stay competitive in our saturated local market.
In October 2020, we started our loyalty program. Since we started, we have obtained 8500 loyal guests with an average of 1,000 new loyalty members across all of our brands monthly. When we started, our goal was to create a program that offered the most value to our guests. We put our mindsets in the customers perspective and realized that what appealed to our guests the most was a flexible program that offered both saving money and other incentives.
When guests become members of our loyalty program they receive:
-Exclusive invites to special events
-First to know about new menu items
-$10 for every $100 spent
-$10 reward will automatically be applied to your account upon spending $100 at any of our restaurant brands
-Triple loyalty points Monday-Friday from 4-7pm
-Redeemable rewards at all restaurant locations
Remember, loyalty programs are centric on your guests, and add indefinite value to your bottom line. By understanding your target audience, you are able to create a loyalty program that will drive traffic to your business and create a loyal client base.
Sam Mustafa is the the CEO of Charleston Hospitality Group and Toast! All Day Franchise. Named one of the nation’s 100 most influential CEOs by Nation’s Restaurant News and frequent speaker on Joe Pardavila’s Podcast on ForbesBooks Radio. He has also been featured on Medium, Authority Magazine, describing his version of the American Dream. Sam is one of the leading voices in the Restaurant Industry.
1) Black, Katherine. “KPMG BrandVoice: Why Customer Loyalty Programs Are so Important.” Forbes, Forbes Magazine, 21 June 2018, www.forbes.com/sites/kpmg/2017/09/13/why-customer-loyalty-programs-are-so-important/?sh=45eddaf92bd4.2) Dolan, Laura. “Why Customer Loyalty Programs Are Important for Your Business [Infographic].” Keap, Keap, 4 Mar. 2020, keap.com/business-success-blog/customer-service/customer-experience/why-customer-loyalty-programs-are-important-for-your-business. 3) Hall, Brody. “How to Create a Customer Loyalty Program That Works.” CandyBar.co Blog, 16 Aug. 2021, www.candybar.co/blog/customer-loyalty-program/.