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Why Should Restaurants Foster Brand Loyalty?

 

Brand loyalty has always been a winning factor when it comes to retaining customers. Many leading restaurant chains go the extra mile when it comes to wooing their customers with reward programs, because loyal customers can be your best sales team.

What makes brand loyalty so special? What do customers perceive when rewarded with loyalty programs?

Brand Loyalty = Increased Revenue

With customer demand increasing by the day, Pizza Hut launched a new loyalty program to assert their market value, and offer seamless delivery experience. According to the Internet Retailing website, “Based on a simple ‘earn a slice’ for every £10 spent, the rewards are then split into three tiers: five slices earns a free side, seven a free medium pizza and 10 slices gets them a free large pizza. Once they have hit 10 slices the program resets.”

According to Stephan Croix, chief sales and brand officer at Pizza Hut Europe and UK, “Loyalty is super important, it’s probably at the heart of any retail driven business today across pretty much any industry you can think of. At Pizza Hut the online customer journey is really at the heart of our strategy.”

McDonald’s is also a classic example of increasing revenue through well-planned customer loyalty programs. The company used past consumer purchase information to pitch for a loyalty program during a specific time period, which contributed to higher sales.

Brand Loyalty = Long-term Business Sustainability

Starbucks has a unique approach towards increasing customer loyalty; it chose informal chats with its customers to understand their in-house experience to gather real-time feedback on how to improve their customer experience. By reaching out to the customers in a personalized manner, the brand reinforced that it places customer loyalty above everything else. This has led to an improved brand positioning in the eyes of the customer, reiterating its values of being a neighborhood coffee shop.

Brand Loyalty = Credibility

According to the U.S. Commerce Department, sales at restaurants were overtaking grocery store spends in 2015. With the number of eat outs and home orders by millennials and baby boomers increasing, brand loyalty certainly helps take sales to the next level. Smart delivery management helps maintain healthy profit margins, without having to lose track of an order, or delay due to traffic congestion. In fact, a market survey by UBS shows that, as high as 76% of customers order directly from the restaurant, necessitating restaurants to improve credibility with more focus on the last mile delivery experience.

The F&B industry is constantly evolving, and the competition gets tougher every season. It is only through exceptional delivery and personalized customer service that restaurant chains can expect to build brand loyalty, and exceed expectations. Brand credibility can be largely improved with a thorough study of the company’s strengths and weaknesses, and implementing a suitable loyalty program.

Are you looking for a delivery management solution for your restaurant? IGotIt is an industry-leading delivery management platform empowering restaurant chains to deliver a WOW! experience to customers. To learn more about our offerings, click here. If you have any questions, please contact us.

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