You know that old saying about something being as easy as catching fish in a barrel? Well, it may be simpler than fishing in the open ocean, but the thing is, a lot of other people are “fishing”, and looking for customers in that very same barrel. If you want to lure in customers to your independent pizzeria, a rewards program may be the ideal bait to help you do it.
Increase Customer Loyalty by 5% to Gain 25-95% Greater ROI
According to Earl Sasser of the Harvard Business School, even a 5% increase in customer loyalty can translate to as much as 25- 95% greater annual profits. This aligns with a similar study by Bain & Company, a well-known global management company which demonstrated that after a single online positive purchase experience, the average shopper was likely to refer as many as three other customers to an online site.
While pizzas and online orders may seem unrelated, other research has shown that the trend also holds true for eateries. Besides which, it is a lot less costly to retain old customers as it is to persuade new ones to give your best hand-tossed pie a try. Per Bain & Company, regular customers spend on average 67% more than new guests on their restaurant orders.
Rewards Can Help Create a Better Overall Experience
Because returning customers are more likely to be focused on their experience than on the cost of the pizza than a first time customer, they also tend to respond well to loyalty programs. To succeed, a loyalty program needs to be seamless, and easy to use with a high enough perceived value that customers want to use it.
Out with the Old
Punch cards, for instance, may have worked in years gone by, but they take up space in your customer’s wallet and are also easy to forget or lose. If you really want to increase customer loyalty, you need to build it into your point of sale system (POS) so that you can track customer spending habits and use them to create relevant rewards and offerings that fit your customer’s tastes and needs.
Keep it Very, Very Simple
Additionally, if you want to encourage customers to use your program, make sure that you limit potential pitfalls such complex requirements to redeem an offer. The last thing you want your reward program to do is to upset people who thought they could use a coupon but can’t due to the fine print.
Remember: The best loyalty programs are simple to use, integrated with POS, and meaningful to the customer. When combined with smart social media outreach, text messages and exclusive offers, you may well find your profits rising as fast as your pizza dough.
For more information about our industry leading point of sales technology for independent pizzerias, please call 800-750-3947 or click here for more information.