Restaurant Customer Recognition and Reward Programs
Learn the tips for introducing customer recognition & reward programs into your restaurant business
- You can “bundle” a number of the following ideas together to suit your business. For example, you could send a card thanking the customer along with a gift of eg homemade cake in a box for referring five customers to your business. Be creative and do what best suits your overall customer service approach.
- Be creative by introducing programs that don’t cost you much money or time. For example, one business gave all of its customers a hand-made card with a batch of homemade biscuits for the coming Christmas.
- Give special offers that have a “soft cost” to you rather than a “hard cost”. For example, if you operate a restaurant, a gift of a dinner for two (normally a hard cost of $45 to non-restauranteurs) would only cost you the direct cost of the materials (food) and labour (kitchen and waitstaff) – about $15.
- Sell the Invisible! There is no point offering extra value and benefits to your customers if they aren’t aware of it. Tell them if you’re giving them extra value for being a special customer. Otherwise, they will take you for granted and won’t be aware that you give far better service than your competitors. If excellent customer service and extra value is part of your competitive advantage, promote these benefits to your customers.
- Team up with other complementary businesses to introduce customer recognition and reward programs. For example, if you did operate a restaurant (like our example above) you could promote it by offering a local hairdresser dinner-for-two gift vouchers for his/her customers for $15. Alternatively, you could give your special customers gift vouchers for hairdressing services and barter with the hairdresser (ie your vouchers for their vouchers). This may have taxation implications for you – check with your taxation adviser.
A. Rewarding Special Customers
Frequent Buyer Programs
Recognise and reward customers who buy frequently from you. For example, you could issue frequent buyers with cards that are to be hole-punched or stamped every time they make a purchase. After their card is stamped five times, the customer receives a small gift or a twenty percent discount off their next purchase. Alternatively, you could introduce a bonus points system similar to those run by some of the large corporations. In this instance, once a customer earns a certain number of points, they receive a gift, discount or other benefits.
Frequent Referral Program
Recognise and reward customers who frequently refer other customers to you. For example, after the first referral, send the referrer a thank-you card. After subsequent referrals, send them a voucher entitling them to a ten percent discount for anything that you provide them. After five referrals, send them a gift certificate entitling them to dinner for two to your restaurant. If your business depends on customer referrals, develop a frequent referral program using a reward system that is appropriate to your own business.
Exclusive Offers to “Special Customers”
Special customers could include frequent buyers, frequent referrers and customers who buy (or could buy) large dollar values of your product and/or services. One of the best ways of recognising and rewarding special customers is to invite them to join a “Customer Club” or to become a “VIP Customer”. Either approach enables you to recognise special customers, access their contact details (name, address and phone number) and reward them by continually making them aware of exclusive offers that you are offering them. This approach is best undertaken by using a customer information system. This system will enable you to personalise letters, brochures, cards or postcards that contain special offers and that you send to special customers.
Exclusive offers could include:
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- Gifts and gift certificates
- Discounts (percentage of the selling price or fixed dollar amount)
- Opportunity to be involved in a competition or contest where there are a limited number of contestants and a high-value prize.
- Special Events – (for example, a book signing by a famous writer, a sausage sizzle, a fashion parade).
- Invitation to Sporting and Social Events – for example, invite your most special customers to a barbecue, a wine and cheese party, a business or charity dinner (book a table), a golf day (often very successful), a national or international level cricket/football match, a play by a touring theatre company, a concert by a renowned performer, entertainer or comedian.
- Invite your special customers to a Customer Open Day at your business. Give them a guided tour of your business and tell them how it operates. Ask for the opinions and comments as you go – it will show that they’re important to you and you may learn ways to improve your business.
B. Adding Value
Give Customers Extra Value for the Same Price
Give customers extra product, service or a combination of both (depending on what you sell). This could include complementary or add-on products (such as a biscuit with a cup of coffee).
Service Enhancements
Don’t let your customers pay for doing business with you. Your competitors may charge customers for food delivery. You can win over some of their customers and keep your own existing customers by daring to be different.
Share Your Skills and Knowledge with Your Customers
Run information sessions or workshops where they can learn from you and you can become better acquainted. This often results in increased customer loyalty and the opportunity to (subtly) promote new or special products/services. Information sessions and workshops could be run on your business premises.
Sponsorships and Community Involvement
Many customers will show more loyalty to a business that actively supports local groups and community activities. You may get additional leverage from these approaches if you sponsor a sporting team or a cause that is dear to a major customer.
C. Thanking the Customer
Often, “Thanks” is all that is needed to make the customer feel appreciated. A sincere and brief message is best. This can be conveyed to your customer by sending a card, an e-mail, text message or phoning them. Use the approach that you feel is most appropriate for the customer and the situation.
D. Keeping In Touch
There are two main reasons for keeping in touch with your customers:
- Keep in touch at least every three months so that customers are reminded that you are still in business and that you care about meeting their needs.
- Keep in touch so that you are able to promote special or exclusive offers to them (such as those listed in Exclusive Offers to “Special Customers”).
The next two ideas are best undertaken by using a customer information system, preferably a database system on your computer. The third suggestion is more passive but can still be effective in reminding customers about your business.
- Monthly or Quarterly Newsletter – you can use this as a vehicle to promote special or exclusive offers to your club members, VIP customers or any customer who’s on your database or mailing list. Apart from the ‘commercials’, give heaps of value by imparting useful knowledge and including entertaining items.
- Confirming Bookings – if your business runs on bookings, this is a very fruitful activity. You can do this by sending an e-mail, text message or by calling them on the phone. Use the approach that you feel is most appropriate for the customer.
- Keep Your Name Highly Visible – give your customers key chains, pens, fridge magnets, or calendars that have your business name (and preferably your contact details on them). There is a myriad of different types of products that you can use to promote your business inexpensively. Be creative and use the product or products that best suit your business.
E. Recognising the Importance of the Customer
- Customer Feedback Programs – customers are more loyal when their opinions are valued. Ask your customers what they want and how can your business serve them better. Some ways of doing this are customer feedback forms, customer surveys, informal conversations and customer focus groups.
- Make the Customer the Star – feature loyal customers in your newsletter. Arrange to have them included in any media publicity about your business – for example, ask if a special customer would like to be in a photo with you that is placed in the local newspaper.
F. Giving Personalised Service
- Give New Customers the Red Carpet Treatment – whenever you meet a new customer, give them a special welcome, find out their name and at least one interesting thing about them (remember these for next time they visit). Pay them a sincere compliment. Give them a special orientation on your business and how you can meet their needs. Mention special offers and benefits. If you have a customer club or VIP customer status, ask them to “sign up” (if that is how your special customer program works).
- Give “Old” Customers the Red Carpet Treatment – same as the above but for “old” customers (“Old” means customers that you’ve served before although giving special care to the elderly is also recommended).
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