If you’re looking for help setting up a restaurant loyalty program this year, we’re here to help.

In this guide, we’ll outline:

1. The benefits of a customer loyalty program.
2. Important things to include in your rewards program.
3. How to set up a restaurant loyalty program both online and in-house.

Creating a restaurant loyalty program is a strategic move to keep your customers returning. Many restaurant owners face the challenge of attracting new customers and retaining them.

If you’re grappling with this issue, you’re not alone and we’re here to help. Starting with the perks of creating a restaurant loyalty program in the first place.

Why create a restaurant loyalty program

Implementing a restaurant loyalty program offers numerous advantages, acting as a strategic tool for enhancing customer satisfaction and driving business growth.

Here’s a breakdown of the benefits a loyalty program can deliver for your restaurant.

Improves customer retention

Loyalty programs aim to keep your customers returning by rewarding them. This strategy is effective for maintaining a solid customer base, as it fosters a sense of value and appreciation among customers, making them more likely to choose your restaurant over competitors.

It’s a cost-effective approach since retaining an existing customer is generally less expensive than acquiring a new one.

Encourages repeat business

A well-structured loyalty program encourages more frequent visits. By offering rewards for repeat purchases or visits, customers are motivated to dine at your restaurant more often, leading to increased sales and a deeper customer relationship.

📈 According to QSR Magazine, Loyalty program members visit restaurants 20% more frequently and spend 20% more than non-members.

Increases customer spending

Rewards based on spending levels incentivize customers to spend more during each visit. This strategy can raise the average order value of your store as customers are enticed to add more to their orders to earn greater rewards.

Increases customer engagement

Loyalty programs serve as a platform for continuous communication with your customers. Sending targeted offers, promotions, and updates helps keep your restaurant top of mind. Strengthening the connection between your brand and your customers.

Improved data collection

One of the strategic benefits of a loyalty program is the collection of valuable customer data. This includes preferences, spending habits, and frequency of visits, which can be used to tailor marketing and enhance the overall customer experience.

Gives you a competitive advantage

A loyalty program can set apart your restaurant from others. It attracts not only new customers seeking value but also reinforces the loyalty of existing customers.

📈 According to the National Restaurant Association, 73% of customers would recommend a restaurant with an appealing loyalty program to friends and family.

Makes promotion/marketing more efficient

Targeting your existing customer base with a loyalty program is typically more cost-effective than broad-scale efforts to attract new customers.

This targeted approach allows for more efficient use of marketing resources and a better return on investment.

Improves customer lifetime value

Customers who frequently return to your restaurant tend to have a higher lifetime value. Loyalty programs increase the likelihood of repeat business, enhancing the long-term profitability of your customer base.

So now we know the undeniable benefits, let’s set up your restaurant loyalty program.

How to create a restaurant loyalty program

Now that we’ve explored the various benefits of a restaurant loyalty program, it’s time to talk about the strategy behind creating one.

Crafting a successful program requires thoughtful planning and execution. This section will guide you through each step of the process.

Step 1: Set your loyalty program objectives

The first step in creating a restaurant loyalty program is to establish clear objectives. In other words, what do you hope to achieve with your program?

Objectives can range from increasing customer retention, to boosting the average spend per visit, and gathering detailed customer data.

Setting these goals early on will shape the structure of your loyalty program and guide your decisions throughout the process.

Identifying objectives

Start by considering the specific challenges and opportunities within your restaurant. Are you looking to encourage more frequent visits during off-peak times, or are you focused on increasing the average order size?

Perhaps your primary goal is to build a richer database of customer preferences and behaviors. By identifying these objectives, you can tailor your loyalty program to address your restaurant’s needs.

Setting measurable goals

It’s important to set measurable goals for each objective. For instance, if your aim is to increase customer retention, define what success looks like.

Is it a certain percentage increase in repeat customer visits within a six-month period? By setting quantifiable targets, you’ll be able to assess the effectiveness of your loyalty program and make adjustments as needed.

Consider customer needs

Finally, think about what motivates your customers. A successful loyalty program addresses the desires and needs of its participants. Conduct surveys or informal polls to gather insights into what rewards or benefits your customers would find most compelling.

This customer-centric approach ensures that your loyalty program will be well-received and actively used.

Step 2: Decide your rewards program type and rewards

With clear objectives in place, the next step is to decide on the type of loyalty program that best suits your restaurant. Along with the rewards and incentives that will encourage your customers to keep coming back.

There are several types of loyalty programs, each with its unique benefits and mechanisms for engaging customers.

Determine the type of loyalty program you want

Choosing the right type of loyalty program is essential for its success. The nature of your restaurant, your objectives, and your customers’ preferences should guide this decision.

Here are the most common types:

• Points-based loyalty program
  • This is one of the most popular and straightforward types of programs. Customers earn points for each purchase, which can then be redeemed for rewards. It’s a great way to encourage repeat business and can be easily customized to fit your restaurant’s needs.

• Tiered loyalty program
  • Tiered programs categorize customers into different levels based on their spending or visit frequency. As customers reach higher tiers, they unlock more valuable rewards. This type encourages customers to increase their engagement to attain higher status and benefits.
• Subscription-based loyalty program
  • Customers pay a recurring fee to access special benefits, such as discounts, free items, or exclusive experiences. This model guarantees steady revenue and fosters a sense of exclusivity and belonging among members.
• Visit-based loyalty program
  • Rewards are given after a certain number of visits, encouraging customers to return to reach their reward threshold. This is simple to understand and implement, making it an excellent option for many restaurants.

Decide on your rewards and incentives

Once you’ve decided on the type of loyalty program, the next step is to define the rewards and incentives.

The key is to offer rewards that are valuable and desirable to your customers, encouraging them to participate actively in the program.

Here are some things to think about:

• Make sure the rewards are consistent no matter the platform
  • Ensure that your loyalty program and the rewards offered are consistent across all customer touchpoints, including in-house and online channels. This consistency is crucial for a seamless customer experience and program effectiveness.
• Make sure your rewards are something your customers actually want
  • Your rewards should align with what your customers value. Whether it’s freebies, discounts, gift cards, exclusive access to new dishes, or special offers like dining experiences, choose incentives that your customers will actually want.
• Offer a variety of rewards
  • Providing a range of rewards can cater to different customer preferences and encourage them to take part. Include both short-term, easily attainable rewards and long-term, more valuable incentives to keep customers engaged over time.
• Make sure the rewards are clear and attainable
  • Customers should understand how they can earn rewards and feel that their goals are achievable. This clarity and attainability are essential for keeping customers motivated and engaged.

Example rewards you could give to customers

Stuck for ideas? Here are some rewards you could offer your loyal customers depending on what your restaurant has to offer.

• First-time order/visit discount: Offer a percentage off the bill on a customer’s first visit when they join the loyalty program.
• Birthday rewards/anniversary discounts: Provide a special discount or a free dessert to celebrate a customer’s birthday or anniversary.
• Free menu item: Let customers redeem points for a free appetizer, dessert, or main dish after accumulating a certain number of points.
• Complimentary side upgrade: Offer a free upgrade to a premium side dish as a reward for loyalty program members.
• Exclusive access: Give access to exclusive menus, dishes, or chef’s table experiences for top-tier loyalty members.
• Priority seating: Offer priority seating or reservations to higher-tier members.
• Unlimited soft drinks: Provide unlimited soft drinks or a specific beverage during visits for subscribers if using the subscription model.
• Early access to new menu items: Allow members to try new dishes before they are available to the general public.
• Signature sauce bottle: Reward loyal customers with a bottle of your restaurant’s signature sauce to take home.
• Exclusive invitations: Send out invites for special events, tastings, or new menu launches to loyal customers.

Step 3: Choose the right tools

After setting your loyalty program’s objectives and deciding on the types of rewards you’ll offer, the next step is to choose the right tools to bring your program to life.

This step is critical because the tools you select will directly impact the effectiveness, user experience, and management of your loyalty program.

In this section, we’ll delve into why hosting your loyalty program on your own website can be advantageous and how combining specific tools like Orderable and WooCommerce can create a seamless, integrated loyalty system.

Hosting your loyalty program on your own website

Using your own website to host your loyalty program offers several key benefits over relying on third-party sources. Here are some advantages:

Complete control over the customer experience

By hosting the program yourself, you have full control over how the loyalty program is presented and integrated into the customer journey. This allows for a cohesive brand experience from start to finish.

Enhanced data security and privacy

Managing your loyalty program in-house means you have direct oversight of your customers’ data, allowing you to ensure its security and comply with privacy regulations more effectively.

You’ll also be able to use the data you gather from their points and orders to increase the effectiveness of not only this marketing strategy, but your business as a whole.

Customization and flexibility

Hosting on your own website gives you the flexibility to customize the loyalty program as your needs evolve and as customer feedback comes in.

This can include adjusting reward structures, updating the user interface, and adding new features.

Direct communication channels

Having your loyalty program on your website facilitates direct communication with your members through integrated messaging systems, email marketing, and notifications, enhancing engagement and retention.

Using Orderable with WooCommerce for online ordering

Combining Orderable with WooCommerce creates a powerful setup for managing online orders and a loyalty program simultaneously. Here’s how these tools work together to benefit your restaurant:

What is Orderable?

Orderable is a powerful plugin designed for WordPress websites, specifically tailored for restaurants, cafes, and other food service businesses looking to offer online ordering directly from their site.

It’s built to make the process of setting up an online menu, managing orders, and processing payments straightforward and efficient.

Here are some of Orderable’s features that will help you with your restaurant loyalty program.

Create customizable online ordering menus

With Orderable, you can easily create and customize your online menu in a matter of minutes. Add photos, descriptions, prices, nutritional information, and options for customization (like toppings or sides) to make your online menu user-friendly.

Customers can then order via this menu either in-house with QR codes, or online for pickup or delivery.

Real-time order management

Restaurants can manage orders in real-time with Orderable. Once an order is placed, any member of the restaurant team will be able to see and manage it with a live orders screen. Here, they’ll be able to see order information and change the order status.

Once changed, automated notifications can be sent to customers, staff, or delivery drivers via SMS, email, or WhatsApp to keep them updated.

With your online ordering system in place, the next step is to add the loyalty program itself, in this case, we recommend the WordPress plugin, WooCommerce Points and Rewards.

Using WooCommerce Points and Rewards with Orderable

Following the setup of Orderable for streamlined online ordering, the next critical component in creating a restaurant loyalty program is the integration of the WooCommerce Points and Rewards plugin.

This plugin acts as the backbone of your loyalty program, seamlessly working with Orderable to reward customer loyalty and encourage repeat business.

What is WooCommerce Points and Rewards?

WooCommerce Points and Rewards allows businesses to easily set up and manage a loyalty points system directly on their website.

This plugin is tailored to reward customers for purchases, incentivizing them to continue shopping with you.

Easy points management

Business owners can set how many points customers should earn for each dollar spent and the value of points when redeemed. This flexibility allows you to create a loyalty program that fits your restaurant’s specific needs and goals.

Customizable rewards system

You have the freedom to set specific rewards thresholds, create points for signing up, and offer bonus points for certain products or during promotional periods.

This customization ensures your rewards program remains engaging and relevant to your customers.

Seamless customer experience

Customers can view their points balance directly from their account dashboard, making it easy to track their progress towards rewards.

This transparency enhances the customer experience, keeping them informed and engaged with your loyalty program.

So now we have our tools in place, let’s take a look at how they will work together.

Step 4: Set up your loyalty rewards program structure

With both the Orderable and WooCommerce Points and Rewards plugins installed on your website, you’re ready to structure your loyalty rewards program.

Let’s break down how this loyalty program will work from the customer’s perspective, focusing on both online and in-house ordering scenarios

For online orders

For online orders, this is how your loyalty program will work. These orders will typically be for pickup/collection, or delivery but also include using QR codes for ordering in-house (we’ll go into detail for that step in the next section).

Placing an order and earning points

When a customer places an order online through your website powered by Orderable, they will immediately see the number of points they can earn from their purchase (through WooCommerce Points and Rewards).

This instant feedback is crucial for engagement, as it emphasizes the benefits of making a purchase.

Account creation at checkout

If not already logged in, the customer will be prompted to sign up for an account during the checkout process.

This account is essential for tracking their points and is a one-time setup that offers convenience for future orders.

Viewing points in ‘My Account’

Once the account is set up, customers can view their accumulated points in the ‘My Account’ area of your store.

This section provides a detailed overview of their points balance, how they earned those points, and how they can redeem them.

Redeeming points for future orders

Customers can redeem their earned points for discounts or free items on future orders, depending on the reward thresholds you’ve set up.

This redemption process is designed to be straightforward, encouraging customers to continue ordering from your restaurant to gain more rewards.

If ordering in-house

For in-house orders, we’re keeping everything in the same place. Rather than using a separate loyalty card or stamp card, you’ll use your online system to allow customers to collect and use rewards.

Ordering via QR codes

For customers dining in-house, you can offer the option to order via QR codes placed on tables. This method mirrors the online ordering experience, where customers scan the code, browse the menu, and place their order through their smartphones.

To earn points, customers will need to be logged into their account, which can be prompted during the ordering process.

Account sign-up and manual points addition

Alternatively, you can encourage customers to sign up for loyalty accounts while dining at your restaurant.

Staff can assist with account creation, and points can be added manually to their account through the WooCommerce dashboard based on their in-house orders.

This method eliminates the need for physical punch cards, or a third-party mobile app, offering a digital solution that has long-term benefits.

Flexibility and frequent changes

One of the significant advantages of this digital loyalty program setup is the flexibility it offers. You can easily adjust point values, rewards thresholds, and promotional offers directly from your WooCommerce dashboard.

This flexibility allows you to keep the program fresh and engaging for your customers, encouraging repeat visits.

Step 5: Launch and promote your restaurant loyalty program

Launching your restaurant loyalty program is a significant milestone. However, its success largely depends on how well you promote and manage it.

This step focuses on effectively introducing your program to customers and ensuring your team is prepared to support it.

Train your staff to understand and use the loyalty program

Before your loyalty program goes live, it’s important to make sure all staff members are fully trained and understand how the program works. This includes the process for signing up customers, how points are earned and redeemed, and the benefits of the program.

Develop a clear workflow for staff to follow when handling in-house orders, especially regarding how loyalty points are managed.

This might involve training on how to encourage customers to sign up for the program and how to manually add points to customer accounts for in-house orders.

Promote your loyalty program

On your website

Feature your loyalty program prominently on your restaurant’s website. This can include a dedicated section or banner that highlights the benefits of joining the program.

Ensure the sign-up process is straightforward and accessible from every page, possibly through a persistent sign-up button or link.

In your restaurant

Utilize in-store signage to promote your loyalty program. Posters, table tents, and digital displays can effectively catch the attention of dine-in customers.

Staff should also be encouraged to mention the program during interactions with customers.

Use digital marketing to reach more customers

Utilize your restaurant’s social media channels to create buzz around your loyalty program. Share posts that detail how to join, the benefits of being a member, and any launch promotions or special rewards for early sign-ups.

Engaging content, like videos or testimonials from staff explaining the program, can increase interest and participation.

Send out an announcement to your email list about the launch of your loyalty program. Include clear instructions on how to sign up and outline the benefits members will receive.

Regular updates can keep customers informed about their points balance, upcoming rewards, or special promotions exclusive to loyalty program members.

Step 6: Monitor and use data to your advantage

After launching your restaurant loyalty program, the journey doesn’t end. The next step is to monitor the program and use the data collected to refine and improve its effectiveness.

In this step, we’ll explore how to leverage customer data from both in-house and online interactions to personalize offers and enhance the overall success of your loyalty program.

Track your restaurant loyalty program data

Whether customers are interacting with your loyalty program online through your website or in-house via QR code orders, every action provides valuable data.

It’s essential to set up systems to capture a wide range of data, including purchase history, frequency of visits, preferred dishes, and reward redemption patterns.

The WooCommerce Points and Rewards plugin plays a pivotal role in this data collection process. It not only tracks the reward points earned and spent by each customer but also stores information that can be analyzed to understand customer behavior and preferences.

At the same time, you can use WooCommerce itself to track things like which dishes are more popular, which are bringing in the most revenue over time, and more.

Using this in combination with Orderable allows you to get even more detailed. Seeing which sides, add-ons, and cross-sell offers your customers find most appealing.

Analyze this data

Regularly analyze the data collected to gain insights into customer behavior. Look for patterns such as which rewards are most often chosen and what types of promotions drive the highest engagement.

Use the data

Use the insights gained from your data to personalize rewards and promotions for different customers.

For example, customers who frequently order vegetarian dishes might appreciate a reward that offers a discount on your new vegetarian menu items.

Personalize offers based on special occasions like birthdays, anniversaries, or even the anniversary of a customer joining your loyalty program. These personalized touches can significantly enhance customer loyalty and satisfaction.

Based on customer feedback and data analysis, continuously adjust the reward structures to ensure they remain appealing and motivating to your customers. This might involve increasing the points for certain actions or introducing new types of rewards.

Create your restaurant loyalty program today

So there we have it, the ultimate guide to setting up your restaurant loyalty program which contains some serious detail to help you create a successful restaurant loyalty program.

By using your own WordPress website, online ordering with Orderable, and WooCommerce Points and Rewards, you’ll be able to put together the best restaurant loyalty program possible.