Rewarding Loyalty Will Pay Dividends in the 2020s

February 17, 2020

Just as demographic and cultural changes drive demand for more convenient dining options, customers will increasingly expect more personalization. Your most loyal customers will want to be recognized and appreciated for their business.

Given the stronger relationships and insights businesses gain when they can meet those expectations, more restaurants will be launching loyalty programs and targeted promotions in the 2020s.

What it means for you

There are plenty of good reasons for independent restaurants to implement loyalty programs and targeted promotions for their customers:

They improve the bottom line. More than a quarter of restaurant customers say that loyalty programs are extremely important to their dining experience.¹ And 50 percent of consumers say that a loyalty and rewards program would make them choose one restaurant over another.²

They help you reach customers you otherwise wouldn’t. Loyalty programs can be a great way to target specific types of customers. For example, for those who have visited your restaurant but have not yet become repeat customers, loyalty rewards and targeted promotions can make a big difference. They help you stay in touch, remind them that you value their business, and provide extra incentive to choose your restaurant over another.

They give you deeper insight into your customers. Loyalty programs and promotions can be a rich source of data about customers’ habits and preferences. You can use these insights to craft more effective outreach and menu options.

“Mastering personalization and targeted marketing will be the hallmarks of successful operations as we head toward 2030. That includes leveraging loyalty programs for online marketing.”

—National Restaurant Association Research and Knowledge Group³

How Grubhub Can Help

Loyalty programs and targeted digital marketing were once only feasible for larger chains, due to high startup costs and ongoing administration. With their new Smart Promotions tool, Grubhub is making it possible for even smaller restaurants to benefit from these kinds of programs.

Smart Promotions are available to Grubhub restaurants at no cost, and allow them to pursue the goal or goals most important to them, including:

-attracting new customers

-nurturing customer loyalty

-boosting orders

Restaurants choose how much they’d like to invest, and the Smart Promotions tool takes care of the rest, automatically adjusting promotions for optimal effectiveness and return on investment. Advanced reporting gives restaurants visibility into how the program is performing each month.

Consider adopting loyalty programs and targeted promotions to take advantage of an opportunity to solidify loyalty and keep your best customers ordering from your restaurant instead of your competitors’.