How a Loyalty Program Can Turn New Customers Into Lifelong Fans
Author: Alessandro Mancini
In today’s competitive market, attracting new customers is important, but keeping them is essential. While many businesses focus on acquisition, long-term success often depends on turning first-time buyers into loyal, lifelong fans. One of the most effective ways to do this is through a well-crafted loyalty program.
According to Bond Brand Loyalty, 68% of consumers say loyalty programs influence where they shop, highlighting how powerful these programs can be in shaping customer behavior. A strong loyalty program not only drives repeat business but also builds emotional ties with your brand, turning casual visitors into brand advocates.
For restaurants, especially brunch spots, a loyalty program can be a game-changer, transforming one-time visits into lasting customer relationships that fuel consistent growth.
Why Loyalty Programs Are Crucial for Customer Retention
Loyalty programs offer a structured way to reward customers for their repeat business. They create a sense of exclusivity, making customers feel valued and appreciated. When executed correctly, these programs provide tangible rewards that encourage customers to return.
The 68% statistic from Bond Brand Loyalty emphasizes just how powerful loyalty programs can be in influencing consumer behavior. In essence, when consumers know that their loyalty will be rewarded, they are more likely to stick with a business rather than trying out a competitor. |
For a brunch restaurant, offering a loyalty program can help in two major ways:
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Encourage repeat visits: Customers who are rewarded for returning are more likely to make your restaurant their go-to spot for brunch, rather than exploring other options.
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Increase customer lifetime value: Loyal customers are more likely to spend more over time. With each visit, they could add extra items like drinks, desserts, or specials—ultimately boosting your revenue.
Example: Loyalty Program at "Sunny Side Brunch Bistro" Imagine a trendy brunch restaurant called "Sunny Side Brunch Bistro" located in a bustling downtown area. Sunny Side offers a variety of delicious breakfast and lunch items, from avocado toast to fresh omelets and signature brunch cocktails. However, like many restaurants, they face stiff competition from other eateries offering similar menus and experiences.
To stand out and build a loyal customer base, Sunny Side introduces a new loyalty program, called the "Brunch Lovers Club", designed to reward returning customers. The program works as follows:
1. Basic Structure of the Loyalty Program
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Earn Points per Visit: For every dollar spent, customers earn 1 point.
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Exclusive Rewards: After accumulating 100 points, members receive a free brunch of their choice.
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Birthday Reward: Members receive a special treat, such as a free mimosa or dessert, on their birthday.
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Tiered Membership: The more points customers earn, the more exclusive rewards they receive, such as priority seating during peak hours, a free drink for every 10 visits, or even an invitation to special brunch events (e.g., cooking classes or wine tastings).
2. Program Marketing
Sunny Side promotes the loyalty program both online and in-house. At checkout, staff members encourage customers to join the Brunch Lovers Club by offering a free starter (e.g., a pastry or fruit cup) when they sign up for the program. They also send regular emails with exclusive promotions, such as double points days or sneak peeks of new menu items.
3. Engagement Through Social Media
To keep the excitement alive, the restaurant integrates the loyalty program with social media, offering followers extra points for tagging the restaurant in their posts. This strategy not only incentivizes customers to share their experiences but also generates organic marketing as their friends see the posts and consider visiting the restaurant.
Financial Impact on Sunny Side Brunch Bistro
Let’s break down the financial impact of this loyalty program. By implementing the "Brunch Lovers Club" program, Sunny Side Brunch Bistro can expect several financial benefits:
Before the Loyalty Program:
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The bistro serves an average of 150 customers per day.
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Each customer spends an average of $25 on brunch.
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This results in $3,750 in daily revenue or $112,500 in monthly revenue.
After Implementing the Loyalty Program:
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In the first six months, 60% of regular customers (around 90 daily customers) sign up for the program.
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On average, customers in the loyalty program spend an additional 10% per visit due to rewards and incentives, bringing their average spend to $27.50.
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The loyal customers visit 20% more frequently than non-members, meaning they come in 6 times per month instead of 5.
Here’s how the numbers break down after implementing the loyalty program:
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90 loyal customers x $27.50 x 6 visits = $14,850 in monthly revenue from loyalty members.
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This is an increase of $4,350 per month from just the loyal members alone.
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Additionally, new customers who sign up through word-of-mouth recommendations from loyalty members (who refer friends) contribute an additional $2,000 per month in revenue.
Total Monthly Revenue After Loyalty Program:
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$112,500 (pre-loyalty) + $4,350 (loyal customers) + $2,000 (referrals) = $118,850 in total monthly revenue.
That’s an increase of $6,350 per month (a 5.64% revenue increase) simply from retaining existing customers and encouraging them to visit more frequently. The loyalty program has not only increased customer retention but also boosted average transaction size and brought in new business through referrals.
Long-Term Benefits: Turning New Customers Into Lifelong Fans
The true power of a loyalty program lies in its ability to create lifelong fans. By continuously engaging with customers and rewarding their loyalty, Sunny Side Brunch Bistro can strengthen relationships with their customer base, resulting in:
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Increased customer retention: Loyal customers are less likely to switch to competitors because they feel valued and appreciated.
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Higher lifetime customer value: As customers earn rewards, they are incentivized to return more frequently and spend more.
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Word-of-mouth marketing: Satisfied loyalty program members will tell their friends and family about the great experiences they’ve had, leading to new customer acquisition without additional marketing spend.
A successful loyalty program can turn a single visit into a long-term relationship, making your restaurant not just a place to eat, but a destination customers keep coming back to.
Conclusion: The Key to Retention Is Loyalty
In today’s crowded dining landscape, where customers have endless options, loyalty is your most powerful currency. As highlighted in the Bond Brand Loyalty study, 68% of consumers say that loyalty programs directly influence where they choose to shop or dine. For restaurants like Sunny Side Brunch Bistro, that insight becomes an opportunity to build stronger relationships, boost visit frequency, and turn first-time guests into loyal regulars.
But to unlock those results, you need more than just a basic punch card. You need the right tools.
That’s where SeeMyApps comes in. Our platform empowers restaurants to create fully customizable loyalty programs, from point-based systems and birthday rewards to tiered VIP perks and referral incentives. Seamlessly integrated with your POS and digital channels, SeeMyApps allows you to engage your customers consistently, whether they’re dining in, ordering online, or scrolling on their phones. With real-time analytics, customer segmentation, and automated reward campaigns, SeeMyApps helps you drive repeat visits, increase average spend, and turn everyday customers into loyal brand advocates. Turn brunch lovers into brand lovers. Keep them coming back with SeeMyApps. |
Source: Bond Brand Loyalty. (2016). Bond Loyalty Report Reveals 66 % of Consumers Modify Spend to Maximize Points Earned. Consulté sur https://info.bondbrandloyalty.com/the-2016-bond-loyalty-report-press-release-us