In the competitive landscape of Quick Service Restaurants (QSRs), customer retention is paramount.
Loyalty schemes have emerged as a powerful tool to keep customers coming back.
From Starbucks Rewards to mobile app-based programs, the strategies are diverse. They offer points for every pound spent, free items, and exclusive rewards to loyal customers.
This article delves into the top loyalty scheme ideas that have proven effective in retaining QSR customers.
We'll explore how these schemes work, their benefits, and how they can be implemented to increase your customer base.
Whether you're a QSR owner or a marketer, this guide will provide you with valuable insights to enhance your customer loyalty programs.
Understanding QSR Loyalty Schemes
QSR loyalty schemes are designed to reward customers for their repeat business.
They are structured programs where a customer earns points or rewards for every pound spent.
These schemes can be as simple as a punch card offering a free item after a certain number of purchases. Or, they can be as complex as a mobile app that tracks purchases, offers personalised rewards, and integrates with online ordering systems.
The goal of these loyalty schemes is twofold:
- To incentivise customers to keep coming back, thereby increasing customer retention.
- To gather valuable customer data that can be used to personalise marketing efforts and improve the overall customer experience.
Understanding how these schemes work and their benefits is the first step in creating a successful loyalty program for your QSR.
The Psychology Behind Customer Retention
Customer retention is a critical aspect of any business, especially in the QSR industry.
The psychology behind it is simple: people are creatures of habit. Once customers find a restaurant they like, they tend to stick with it.
Loyalty schemes tap into this habit-forming behaviour by offering rewards that incentivise repeat visits. The more a customer visits, the more rewards they earn, reinforcing their habit of choosing your restaurant over others.
Understanding this psychology can help you design a loyalty scheme that effectively motivates customers to keep coming back.
Benchmarking Success: Starbucks Rewards
Starbucks is a prime example of a QSR with a successful loyalty scheme. Their Starbucks Rewards program has been a game-changer in the industry.
Members earn points, or "stars", for every pound spent, which can be redeemed for free food items. This simple yet effective system encourages customers to spend more to earn more rewards.
The Starbucks Rewards program is also seamlessly integrated with their mobile app, making it easy for customers to track their points and redeem rewards. This integration has played a significant role in the program's success.
Leveraging Mobile Apps for Loyalty
Mobile apps have become a crucial tool for QSR loyalty schemes. They provide a convenient platform for customers to track their points, redeem rewards, and stay engaged with the brand.
For instance, the Starbucks mobile app allows customers to order ahead, pay in-store, and earn rewards all in one place. This level of convenience enhances the customer experience and encourages repeat business.
Moreover, mobile apps with loyalty schemes can be integrated with online ordering systems, further simplifying the process for customers. They can earn points for every pound spent, whether they're ordering in-store or online.
Earning Points: Encouraging Customer Engagement
A key aspect of any successful QSR loyalty scheme is the process of earning points. This process should be simple, transparent, and rewarding for the customer.
For example, a common approach is to offer points for every pound spent. This not only encourages customers to spend more, but also gives them a clear understanding of how they can earn rewards.
Here are a few strategies to encourage rewards members to earn points:
- Offer bonus points for purchasing certain food items.
- Provide double points during specific hours or days.
- Give extra points for referring friends or leaving reviews.
By making the process of earning points engaging and rewarding, QSRs can increase customer participation in their loyalty schemes. This, in turn, can lead to higher customer retention and increased profits.
Points for Every Pound: Rewarding Spending
One of the most effective ways to encourage customer spending is to offer points for every pound spent. This strategy is simple, straightforward, and easy for customers to understand.
When customers know that every pound they spend earns them points, they are more likely to increase their spending. This is because they perceive a direct benefit from their purchases.
Moreover, this strategy can also help to increase the average order value. Customers may choose to add more items to their order to earn more points. This can significantly boost a QSR's revenue.
In conclusion, offering points for every pound spent is a powerful strategy for driving customer spending. It rewards customers for their purchases and encourages them to spend more, leading to increased revenue for the QSR.
Free Items and Tiered Rewards: Enhancing Perceived Value
Free items are a classic reward in many QSR loyalty schemes. They serve as a tangible thank you to customers for their loyalty and patronage.
Offering free items not only makes customers feel valued, but it also creates a sense of anticipation. Customers look forward to reaching the point threshold that will earn them a free item. This anticipation can drive repeat visits and increase customer spending.
In addition to free items, tiered rewards can also enhance the perceived value of a loyalty scheme. With tiered rewards, customers earn greater rewards as they reach higher tiers. This can motivate customers to spend more to reach the next tier.
In conclusion, free items and tiered rewards can significantly enhance the perceived value of a QSR loyalty scheme. They create a sense of anticipation and motivation that can drive customer loyalty and spending.
Integrating Online Ordering with Loyalty Schemes
The rise of online ordering has opened new avenues for QSR loyalty schemes. By integrating restaurant loyalty programs with online ordering systems, QSRs can provide a seamless experience for customers.
Customers can earn points for every pound spent on online orders, just as they would in-store. This encourages customers to use online ordering, which can increase order frequency and size.
Integration also allows for personalised offers based on a customer's online ordering history. This can further enhance the customer's experience and loyalty.
In conclusion, integrating online ordering with loyalty schemes can provide a seamless and rewarding experience for customers. It can also drive increased order frequency and size, contributing to a QSR's bottom line.
QR Codes and Digital Convenience
QR code ordering have become a popular tool in QSR loyalty schemes. They offer a quick and easy way for customers to access their loyalty program details.
Customers can simply scan the QR code with their smartphone to view their points balance, redeem rewards, or learn about special offers. This digital convenience can enhance the customer experience and encourage engagement with the loyalty program.
Moreover, QR codes can be used to facilitate sign-ups for the loyalty program. By scanning a QR code, customers can quickly and easily join the program, increasing the customer base for the QSR.
In conclusion, QR codes offer a convenient digital solution for QSR loyalty schemes. They can enhance the customer experience, encourage engagement, and facilitate sign-ups, contributing to the success of the loyalty program.
Retaining Customers: Best Practices for Quick Service Restaurant Loyalty Programs
Retaining customers is a key goal of any QSR loyalty scheme. By encouraging repeat business, loyalty programs can significantly increase a customer's lifetime value.
One effective strategy is to offer exclusive rewards for loyalty program members. These could include free items, discounts, or early access to new products. Such rewards can make customers feel valued and incentivise them to continue patronising the QSR.
Another best practice is to personalise the loyalty program. By tailoring rewards to a customer's preferences, QSRs can enhance the customer experience and foster a sense of connection with the brand.
Here are some best practices for retaining customers through QSR loyalty schemes:
- Offer exclusive rewards for loyalty program members.
- Personalise the loyalty program to the customer's preferences.
- Use data analytics to refine the loyalty scheme offerings.
- Promote the loyalty program through social media and other marketing channels.
- Train staff to effectively manage and promote the loyalty scheme.
- Address customer concerns and questions promptly and effectively.
- Regularly evaluate and update the loyalty program to keep it fresh and engaging.
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