In the restaurant industry, crafting messages that resonate with your customers is an art form. Marketing campaigns wield the power to influence loyalty programme members, compelling them to revisit and spend more. The key lies in delivering compelling loyalty programme messages with meticulous attention to format, relevance, and timeliness.
When you send a guest the right message over the right channel at the right time, it cuts through the clutter and forges a meaningful connection. This strategic approach not only conveys information effectively but also maximises the impact of your message. To guide you through the nuances of successful loyalty programme engagement, this article will delve into the basics of tried-and-true messages.
Imagine sending a warm email adorned with enticing food visuals, enticingly stating, “Hey, we’ve prepared something special for you!” It’s not just a message; it’s like playing a melody that evokes sentiments of “I miss that place!” This interaction serves as the initial chord to draw them back into your establishment.
The key to mastering this art of customer communication lies in understanding who they are. What culinary delights ignite their enthusiasm? What dishes did they savour previously? Tailoring your messages to their preferences ensures that your words strike the right chord, forging a meaningful connection.
Timing is another crucial element in this symphony of customer communication. Dispatch messages that align with the season or local events, such as introducing a cosy winter menu or a weekend indulgence. It’s akin to saying, “This is tailor-made for you right now!” Timing elevates the importance of your message, prompting customers to take action.
Social media serves as the grand finale in this orchestrated plan to engage with customers. Showcase behind-the-scenes glimpses, introduce the culinary maestros behind your kitchen, and extend invitations for customers to participate. Run entertaining contests to transform customers into fervent fans who amplify your restaurant’s reach.
Provide incentives for return visits by offering exclusive deals or freebies. Loyalty programmes and discounts not only make customers feel valued but also establish a bond that encourages repeat patronage.
Post-visit, expressing gratitude is paramount. Inquire about their experience and encourage them to leave a review. Positive reviews act like reverberations, attracting new customers and elevating your establishment’s reputation.
Your guests will love being able to participate in fun and unique promotions and campaigns, enjoying a dynamic experience through engaging challenges. Enhance their experience by connecting them to your brand with added benefits and promotions. Make it easy for guests to stay up to date through their preferred channel, whether online, in the app, through email, or SMS. They can easily identify themselves online or on-premises, having multiple opportunities and avenues to accrue rewards. Thrill your guests by allowing them to redeem and accrue awards online as well as on-premises. Surveys enable your guests to let you know their thoughts, fostering a deeper connection to your brand.
To master customer communication, leverage technological tools that analyse customer preferences and gauge the efficacy of your messages. Familiarising yourself with these tools enables you to converse with customers in a manner that leaves them craving more delightful experiences.
So, we will do the heavy lifting; you just have to download our latest insight into building strategic communications for your raving fans!
It’s a big decision for restaurant owners investing in POS systems – should you go for on-premises technology, or would a cloud-based system suit you better?
It’s a decision as individual as your business, and can be tricky. And because one size definitely doesn’t fit all in the hospitality industry, the most savvy restaurateurs seek expert help deciding what’s best for their own circumstances and set-up.
But there are some clear differences between the two ways you can host your point of sale system, and in this guide by NFS Technology we outline some of the things you should know.
• your staff to take orders at tableside on tablets or mobiles and send them straight to the kitchen
• offers prompts for upselling
• supports kitchen automation
• enables accurate billing and payment by card at tableside
• allows customers to see menus and place orders online or from a kiosk/tablet
• integrates with your other restaurant systems, eg inventory and accounts
• captures important customer data to support targeted offers
• integrates with customer loyalty programmes
The difference between a cloud-based system and an on-premises restaurant management system is that there’s no need for a server on your premises. All data is stored in the cloud – for instance, Microsoft’s Azure – and accessed via the internet.
What are the pros and cons of cloud-based systems for restaurants?
It’s important to stress that every restaurant business is individual, and you need to think carefully about what you want your EPOS system to achieve for you. The areas outlined below will give you some food for thought.
Footprint
On-premises POS systems base a server to be within your restaurant, which does take up some space but not much – the box is about A5 sized and is the backbone of the processing power for your EPOS system. Getting a full server of the correct power is more cost-effective than fitting it into a POS terminal.
A cloud-based POS system does not need any hardware on your premises as the processing is done in Azure.
Resilience
Being based in your restaurant, an on-premises server offers the best possible redundancy for that location if the internet fails at any time. On the other hand, in a busy environment the server can be accidentally damaged – for example, by being knocked or spilled upon.
In cases of internet outages or slowdowns, businesses using cloud-based technology may experience disruptions in functionality, leading to potential delays in service and transactions.
Updates
Cloud-based systems score highly here because they often benefit from the fast and remote release of updates and new functions. In addition, they are API-driven and designed for interoperability. Scaling up can also be done quickly if needed.
However, some cloud-based systems can offer limited options for customization when compared to more traditional software.
Cost
On-premises POS systems can require significant upfront investments in hardware and software, and may require the purchase of a licence.
Cloud-based POS systems, on the other hand, usually operate on a subscription-based model, eliminating the need for expensive infrastructure. This can be beneficial for small and medium-sized businesses with budget constraints, but the lifetime cost of the system should be taken into account before you make a decision.
Cloud-based POS systems frequently include automatic updates and maintenance as part of the subscription. This reduces any burden on internal IT resources and keeps additional costs down.
Scalability
When a business expands, its operational needs change and grow with it. Cloud-based POS systems for restaurants offer scalability, enabling hospitality organisations to add or remove functionalities and adapt the system without a large overhaul.
Overall benefits of a POS system
When choosing a POS system, it’s wise to select one that’s specifically designed for restaurants, rather than one of the cloud-based POS systems for retail. But whether you choose software that’s based on your premises or hosted in the cloud, your business will still gain the huge benefits that digital technology can bring. These include:
Customer service
This will benefit whether you choose an on-premises or cloud-based POS system. Point of sale streamlines the customer’s journey by making service quicker and more efficient, and by allowing diners to pay swiftly and conveniently.
Labour management
Staffing also benefits from any kind of restaurant management system. By capturing data, the EPOS highlights the busiest times, enabling managers to match staffing to demand.
Tableside ordering, with orders sent directly to the kitchen, saves servers from running back and forth, enabling them to spend valuable time liaising with guests. It also eliminates human error, which also saves time and money, and helps cut down on the potential for staff fraud because all transactions are clearly logged.
Efficiency
EPOS systems are designed to integrate seamlessly with your other business applications, such as inventory management, customer relationship management (CRM) and accounting systems. This integration enables you to streamline operations and reduces manual data entry errors.
Reporting
Restaurants, and particularly restaurant chains, are complex businesses that can be hard to control. EPOS – both on-premises and cloud POS – provides comprehensive reports on all aspects of the business that give an end-to-end view of the business in real time.
POS systems give managers access to these reports via the internet wherever they are based, eliminating the duplication of head office functions and promoting efficiency.
Conclusion
Any hospitality business investing in a POS system should consider carefully a wide range of pros and cons.
The accessibility, reporting and cost-saving benefits can significantly enhance your operational efficiency and customer satisfaction, and will also make your restaurant a better place for staff to work.
However, you need to be mindful of potential challenges such as internet dependency, customisation options and long-term subscription costs.
It’s a good idea to seek expert help from a provider with a consultative approach who will help you define your aims, requirements and priorities, and who can also keep you up to date with the latest advances in technology.
With expert help, you can weigh the pros and cons for your own individual business – and make an informed decision that aligns with your operational goals and contribute to long-term success.
We are seeing a huge shift in marketing; gift cards have transitioned from being a pleasant addition to a must-have strategy for driving brand engagement and boosting visits. With digital cards, economic fluctuations, and diverse purchasing channels, staying ahead of the curve is crucial.
Drawing insights from The Annual Gift Card Report: 2023 by Paytronix, let’s delve into three key strategies that can elevate your gift card programme to new heights.
The data reveals a +6% change in total gift card revenue, counterbalanced by a -2% change in total gift cards sold. However, the silver lining is an impressive +8% change in the average £ loaded per gift card. We delve into the three strategies for gift card marketing success
1. Harness-Changing Gift Card Purchasing Behaviour
Embrace the Digital Shift:
The rise of digital gift cards is undeniable. Guests redeem digital cards faster, and they are loaded with up to 74% more value. To capitalise on this trend, ensure a seamless online and mobile app purchase experience. Incorporate digital cards into multi-channel campaigns, leveraging email, social media, and paid search.
Third-Party Partnerships:
Explore third-party channels, which accounted for 42% of all gift card sales in 2022. Collaborate with grocery stores, pharmacies, or hardware stores, extending the reach of your gift card programme.
In-Store Appeal:
In-store gift cards constituted nearly half of the sales in 2022. Maximise in-store purchases by strategically placing gift cards around the checkout area and encouraging staff to promote them.
Denomination Mix Optimisation:
Analyse the performance mix of physical card denominations and introduce higher denominations based on the increased average load in 2022. A/B tests different denominations digitally for deeper insights into customer preferences.
2. Make every day a Great Day to Gift
Target Special Occasions:
Beyond the holiday season, capitalise on year-round gifting opportunities. Promote unique gift card designs and special occasions such as Valentine’s Day, Easter, Mother’s Day, Father’s Day, graduation, and back to school.
Encourage Everyday Gifting:
Facilitate everyday gifting by promoting digital cards, which accounted for 19% of sales throughout the year. Provide customization options and convenient delivery methods via email or mobile.
Self-Gifting Incentives:
Recognise the growing trend of self-gifting. Incentivize loyalty members to load balances on their gift cards by offering bonus cards, fostering repeat business.
Holiday Cheer:
While the traditional holiday season remains the peak period, offer a variety of holiday-themed gift cards and packaging to enhance the festive spirit.
3. Promote Gift Cards as a Brand Experience
Loyalty Rewards:
Incorporate bonus gift cards to reward brand loyalty and increase average balances. Limited-time promotions like “Bonus Mondays” can create a sense of urgency.
Flash Sales for Loyalists:
Engage loyal customers with one-day flash sales, creating instant demand. Leverage email, social media, and mobile alerts for effective promotion.
Seamless Loyalty Integration:
Connect loyalty programmes with gift cards to deliver exclusive offers directly to loyal customers, enhancing their overall experience.
Supporting Causes:
Enable local organisations to benefit from your brand by offering bulk gift card purchases, aligning with community causes.
Gift Cards Drive Meaningful Guest Engagement
In conclusion, gift cards present a unique avenue for restaurant marketers to engage and acquire guests while generating immediate revenue. By adopting these strategies, you can not only enhance your gift card program’s performance but also align it with broader guest engagement goals. Stay ahead of the curve, adapt to changing behaviours, and turn every day into a great day to gift.
In the intricate tapestry of restaurant operations, gift cards stand as not just transactional tools but powerful conduits of guest engagement. However, the dynamics of the industry demand that businesses evolve, and sometimes, this evolution involves a strategic switch in gift card providers. Embarking on such a transition may seem like a daunting task, but with careful planning, it can be a transformative step toward enhancing brand presence, optimizing operations, and delivering unparalleled customer experiences. This article is your guide to successfully navigating the process of switching gift card providers and making this transition a seamless success.
Why Switching Matters:
As of 2022, 32% of restaurateurs recognized the installation of a new Point of Sale (POS) system, including gift cards, as a priority. This signals a collective understanding in the industry that the choice of technology providers, including gift card platforms, plays a pivotal role in staying competitive and meeting evolving customer expectations. Switching gift card providers is not just about the physical or digital card itself; it’s about choosing a partner that aligns with your restaurant’s goals, enhances efficiency, and ensures a delightful experience for both guests and franchisees.
Understanding the Need for Change:
Before delving into the switch, it’s crucial to evaluate your current gift card provider. Identify its limitations, assess guest and franchisee satisfaction, and determine if it aligns with the evolving needs of your restaurant. Create a list of pain points and areas that could be improved, from the ease of purchase and redemption to the robustness of reporting and integration capabilities.
Finding the Right Gift Card Provider:
Choosing a new gift card provider is a critical decision that requires a strategic approach. Consider the following factors:
Automation and Efficiency:
Look for a provider that delivers automation to eliminate manual tracking of gift card costs and discounts. This is crucial for recognizing expenses accurately on a card-by-card and transaction-by-transaction basis.
Movement Tracking:
Ensure that the new provider can facilitate the tracking of money movement across different stores, franchises, and corporations. This includes both centralized and decentralized systems.
Reporting Capabilities:
Verify that the new provider offers reporting capabilities that match or exceed your current system. Reliable and robust reporting is essential for liability and redemption tracking, audit preparedness, and overall program management.
Tips for a Successful Transition:
Making the switch requires careful planning and execution.
Here are ten tips to guide you through the process:
1. Data Ownership: Ensure you own and can easily access your gift card data. This is critical for a smooth transition and ongoing management.
2. Cross-Functional Team: Assemble a cross-functional team comprising marketing, IT, finance, and operations to handle the migration process collaboratively.
3. Streamlined Process: Streamline the migration process by ensuring that all appropriate parties weigh in. Clear communication and collaboration are key.
4. Timeline Understanding: Clearly understand the timeline of the migration process and communicate this timeline effectively to your customers. Transparency builds trust.
5. POS Configuration and Testing: Perform thorough POS configuration and testing to identify and resolve any issues before the full implementation of the new system.
6. Inventory Management: Take inventory of your current gift card stock to ensure you can meet demand during and after the transition.
7. Online Ordering Integration: Integrate online ordering to provide a seamless experience for customers. The switch should not disrupt their ability to use gift cards for online orders.
8. Third-Party Consideration: If considering third-party channels, understand that they can add complexity to the program. Evaluate the benefits against the added complexities before making a decision.
9. E-Gift Card Exploration: Explore the possibility of introducing e-gift cards for added convenience and flexibility. This aligns with the mobile-oriented preferences of modern customers.
10. Reporting Alignment: Verify that your new provider not only meets but enhances your current reporting capabilities. This includes tracking sales fees, discounts, breakage across programs, and money movement.
Switching gift card providers is not just a logistical move; it’s a strategic decision that should align with your broader guest engagement strategy. Integrating gift cards into a holistic approach that includes loyalty programs, ordering systems, and comp cards can create real and lasting value for your restaurant and its patrons.
The switch is not just about upgrading technology; it’s about elevating the overall experience for your guests and streamlining operations for your team. With a well-thought-out plan and the right provider, this transition can be a transformative journey toward a more efficient, engaging, and successful restaurant operation.
Restaurant loyalty is the lever everyone needs to think about pulling as we head into 2024. The new Loyalty Report 2023 by Paytronix focuses on guest engagement maturing and provides crucial insight for the upcoming year and beyond.
Loyalty programmes, born out of simple passion, have evolved into powerful tools for building deep and mature relationships with customers. In the early days, if you loved a product and showed loyalty by making frequent purchases, you were rewarded. Fast forward to today, and loyalty programmes have transformed into what Paytronix calls “digital guest engagement.”
The landscape of loyalty programmes is diverse, adapting to various business segments. Whether it’s convenience stores, quick-service restaurants (QSRs), or full-service restaurants (FSRs), each has its own unique set of loyal members. These differences extend to generations, visit frequencies, preferred day parts, and even the ways in which rewards are redeemed.
Despite these distinctions, there are surprising similarities among loyalty members. They tend to stick to ordering either online or in person, rarely opting for both. The success of restaurant programmes is mirrored in the value convenience store programmes bring to both brands and customers.
At Paytronix, our focus is on data and insights that drive superior guest engagement through loyalty. The report draws from our extensive database of hospitality data, presenting actionable insights to enhance loyalty marketing and deliver more mature guest engagement.
This report takes a comprehensive approach, breaking down loyalty programmes from various angles to provide the fullest view. One consistent theme emerges—guests’ relationships with loyalty programmes are deepening year by year. This growth is especially pronounced as brands innovate new and surprising ways to engage with their customers.
Post-pandemic, there’s been a seismic shift in how guests perceive loyalty. In a world shaped by technology and grappling with rising inflation, the promise of better engagement and enhanced value from favorite brands became irresistible. Over the last two years, loyalty programmes have witnessed unprecedented popularity, reaching an all-time high in membership, with a notable surge in QSR loyalty members.
Crucially, loyalty programme members consistently display a significant check size difference compared to non-loyalty members. This pattern has held true since the inception of the report and continues to be relevant. The focus on the top 10% of loyalty members remains, and for good reason—they contribute significantly, constituting around half of all loyalty member visits and spending. This elite segment is not only more valuable than the average loyalty member but far more valuable than the average guest.
The total number of active loyalty members increased steadily between January 2021 and June 2023, with FSRs seeing a 16% increase, c-stores a 19% increase, and QSRs a remarkable 24% increase.
In 2022, QSR and FSR active loyalty members enjoyed 5%+ increases in check size compared to non-loyalty members, while convenience store loyalty members experienced a substantial 12% increase in check size.
The top 10% of active loyalty members play a pivotal role, accounting for nearly half of all loyalty visits across concepts.
As the loyalty landscape continues to evolve, these insights provide a roadmap for brands to navigate the complex realm of loyalty programmes, fostering deeper connections with their customers and reaping the rewards of a loyal customer base.
In the final blog of our Feature Focus series, we look at setting up your subscription and how technology can help, we are leading up to our “Leveraging Subscription-Based Offers: A Recipe for Restaurant Success” webinar on September 19th with our partners, Paytronix.
In this blog post, we’ll explore the essential steps to set up your subscription program for success and how technology, like the services offered by Paytronix, can be your guiding star in this journey.
Subscription programs have become the lifeblood of many businesses today, offering a reliable source of revenue and fostering customer loyalty. However, the road to launching a successful subscription program is not without its challenges. The price-fixed nature of subscription offerings demands careful planning and strategic execution.
Step 1: Financial Modelling
The foundation of any subscription program lies in understanding your market and pricing it right. Financial modelling is the initial crucial step. You need to determine the price range, select the products or services to include, and set limits based on a comprehensive analysis of current purchase patterns. This data-driven approach ensures that your pricing is not only competitive but also profitable.
Step 2: Consumer Survey
To fine-tune your subscription program, gather insights directly from your target audience. Conducting surveys among potential customers can help you gauge their interest and preferences. Segment the survey to target specific audiences and experiment with different price points. This information is invaluable for optimising your program’s appeal.
Step 3: Test Market Program
Before a nationwide rollout, consider a beta program in select test markets. This allows you to iron out any issues, refine your strategy, and assess the program’s viability. Testing locally provides the freedom to experiment and adapt, ensuring a smoother national launch.
Turning to Technology with Paytronix
Managing a subscription program efficiently and making timely modifications is where technology plays a pivotal role. Paytronix offers a comprehensive suite of tools tailored to subscription management:
Customer Targeting: Identify and reach out to potential subscribers through personalised campaigns, encouraging them to sign up.
Streamlined Signup Process: Reduce cart abandonment with a user-friendly and hassle-free signup process.
Secure Payment Acceptance: Ensure secure and convenient credit card payment processing for subscribers.
Recurring Payment Tracking: Keep tabs on recurring payments and automate messaging for reminders and issue resolution.
Reward Management: Implement a rewards system to incentivise loyalty among subscribers.
Renewal Processing: Automate renewal reminders and marketing messages to boost subscription renewals.
Automated Email Triggers: Send out relevant emails triggered by subscription-related actions at the point of sale or by members.
Analytics: Gain insights into the impact and return on investment of your subscription program through advanced analytics.
In summary, a subscription program’s success hinges on meticulous planning, customer insights, and efficient technology. Paytronix’s subscription management tools can simplify your journey, ensuring a smooth and lucrative subscription program that benefits both your business and your customers. Remember, a seamless system not only makes your life easier but also enhances the subscriber experience, leading to long-term success. Embrace technology, and set yourself up for subscription triumph!
If you haven’t downloaded our 2023 subscription report, then the next 500 words should drive you to hitting that link at the bottom of this page. Our “Feature Focus” series continues as we look into how you can customise your subscription to your restaurants needs, we are leading up to our “Leveraging Subscription-Based Offers: A Recipe for Restaurant Success” webinar on September 19th with our partners, Paytronix.
As restaurant owners, you understand that satisfying your guests goes beyond serving delicious meals. It’s about crafting an experience that resonates, fosters loyalty, and drives revenue. Enter the world of tailored subscription models—a strategic approach that’s redefining customer engagement and transforming the restaurant industry.
Elevating the Experience with Member Perks
Imagine your customers walking into your establishment and feeling like VIPs, part of an exclusive culinary club. That’s the power of member perks. By offering occasional, unadvertised specials exclusively for your subscription members, you’re not just enticing them; you’re making them feel valued. Think of the allure of surprise 2-for-1 drink deals during specific months, akin to the successful Matty O’Reilly dining membership. It’s all about providing that extra touch that keeps them coming back for more.
Exclusivity and Waiting Lists: A Time-Tested Strategy
The concept of limited availability has driven purchasing decisions for centuries. It’s no different in the realm of restaurant subscriptions. While offering free coffee memberships might not make sense for this strategy, consider applying it to higher-ticket items like entrées and meals. By strategically limiting memberships and highlighting that only a few slots are left, you’re igniting a sense of urgency that can sway even the most hesitant customers.
Harnessing the Referral Power
Word of mouth is a potent force, and referral bonuses tap directly into this phenomenon. Rewarding your subscribers for bringing friends on board is a time-tested approach that resonates well with subscription models. Take a leaf out of Panera’s book—offering three months of free coffee subscription for two friend sign-ups. Not only does this expand your subscriber base, but it also deepens the sense of community around your restaurant.
Overcoming Commitment Hurdles with Free Intro Periods
Commitment can be daunting, especially in a subscription scenario. This is where the concept of a free introductory period shines. Imagine inviting potential subscribers to experience the perks of your subscription for a brief window, no strings attached. The Panera coffee program’s initial free period is a great example. This strategy alleviates concerns, allowing members to ease into the program before transitioning to automatic billing.
The Power of Free Shipping
The geographical boundaries of your restaurant need not limit your reach. With the allure of free shipping, you can expand your subscriber base exponentially. Katz Deli’s monthly box of New York favourites is a prime example—showcasing adaptability by changing box contents based on availability. On a local scale, consider integrating faster delivery options for subscribers, enhancing convenience and satisfaction.
Potential for Loyalty and Revenue
The bottom line is crystal clear: subscription models possess the potential to revolutionise customer loyalty and revenue generation. By customising your offerings, embracing exclusivity, leveraging referrals, easing commitment concerns, and expanding reach, you’re not just creating transactions—you’re building lasting relationships.
If you are still unsure of how subscription can work in your business, join us on September 19th for our “Leveraging Subscription-Based Offers: A Recipe for Restaurant Success” Webinar with our partners, Paytronix, where we will show you how to onboard subscription into your business that guarantees higher revenues and customer retention, you can download our latest insight below.
On the 19th September we are hosting our first “Feature Focus” webinar to showcase the benefits of building subscriptions into your restaurant business.
Over the next few weeks we are going to entice you with some excerpts from our latest subscription report.
The report covers all of the relevant information you need to add subscriptions to your business such as, the Next Level of Loyalty, Top Advantages of Subscriptions, Launching into Subscriptions, Models to Consider, Tailored to Your Needs, Setting up for Success and turning to tech.
This week we are focusing on your launch into subscriptions.
Subscription Services are dominating most if not of all of our day to day habits: The trend of subscription-based services is still on the rise in various industries, from entertainment (streaming services like Netflix, Spotify, Disney+) to software (Adobe Creative Cloud), food (meal kit subscriptions), and even clothing (rental subscriptions). By 2024, it’s possible that even more industries have embraced the subscription model, offering convenience and customisation to consumers.
There’s good reason efforts like these are being launched — they offer a very quick surge in revenue. For instance, Panera’s program garnered over 100,000 signups the first day alone, and then saw between 30,000 and 50,000 signups per day for the first two months. Those subscribers paid off too, leading to a staggering 70% increase in food attachment.
In the below example, Panera Bread shows the impact of a well thought out subscription. Panera Bread is an American chain store of bakery-café fast casual restaurants with over 2,000 locations, all of which are in the United States and Canada.
There are some great examples below of the flexibility you can offer through your subscriptions,
Additional Purchasing: In many cases, subscriptions are a loss leader, but they can still yield major gains. Offering meals and products at deep discounts gets customers in the door, even if that’s a virtual door, and paying full price for other items. It also allows for significant upselling opportunities since customers can feel as if they have “extra money” they saved as a result of discounts, leading to higher spend than they would have shown otherwise.
Repeat Customers: If someone has a subscription to a specific restaurant, store, or service, they will view that option as a default for their food and shopping needs. Since they’ve prepaid, customers want to gain maximum value from their investment and will “zero out” their monthly subscription or meal package — making additional purchases along the way — which drives loyalty higher.
For more examples of the flexibility and the revenue growth that subscription can offer you then click below to download our Subscription report.
Continuing from our leveraging subscriptions blog last week, we now look at the types of subscriptions you should apply to your business and explain how to segment the data to cement success and grow your revenue.
From unlimited coffee to endless brownies to all the Chinese food you can handle for a small monthly fee, subscription programs are taking over. Restaurant and retail marketers, be prepared; it’s only a matter of time before someone knocks on your office door and asks, “Why don’t we offer ____ as part of a subscription program?”
Subscriptions are a powerful loyalty tool with lots of advantages. Subscriptions grow revenue and customer visits while building loyalty and differentiating unique brand propositions. And subscriptions are only becoming more popular. In 2022, the average consumer held, on average, five subscriptions, with a total annual spend for all of them at £640, or £130 per subscription. This means that if a restaurant can convince 100 guests to sign up for an average subscription, they can look forward to an annual incremental revenue of £13,000.
What to offer? Netflix vs. Estee Lauder vs. Amazon.
Of course, not all subscription programs are alike. We have identified three major categories of subscriptions, exemplified by subscription services from Netflix, Estee Lauder, and Amazon.
Naturally, choosing your type of subscription service will vary depending on your brand, your concept, and your menu. Convenience stores will naturally gravitate towards add-on product subscriptions such as coffee to encourage in-store purchases, while pizza restaurants may lean toward service subscriptions offering free delivery.
Segmentation leads to success. Data determines the item.
After you’ve aligned your brand with a category of subscription items, use segmentation to determine the target audience for your subscriptions. Because subscriptions have broad appeal across all visitor types, segmentation is key to determining which items will target the right audience. Matching the core data against your key visitor types makes that clear. Let’s take some hypothetical data below. It’s easy to see that the best item to offer highly depends on the subscriptions category and the audience. For this particular brand, it’s clear that pizza will appeal to its most frequent visitors, while fries are an obvious choice for an add-on. On the other hand, if this brand is trying to encourage its medium- and low-frequency guests to come more often a sandwich subscription could encourage repeat business. Moreover, a sandwich subscription also appeals to new, potentially high-frequency guests. And add-ons of either beer or fries appeal to new visitors of all types and would potentially be effective at wooing single visitors to visit again. Finally, the data shows that offering a pizza-slice subscription is a poor choice across the board.
As the popularity of subscription programs grows, the pressure on your restaurant or coffee shop to offer one will become undeniable. Fortunately, the question of which item to offer comes down to data and your business strategy. Armed with this knowledge, you may find yourself knocking on a colleague’s door shortly, asking, “Why don’t we offer ____ as part of a subscription program?”
You can download our latest subscription report by clicking the button below.
Consumer behaviour & preferences are constantly evolving alongside technology, restaurant operators must think creatively to attract and retain loyal customers. While the concept of subscriptions might have once been limited to newspapers and magazines, this business model has transcended industries and is now making waves in the culinary realm. Welcome to the era of subscription-based offers in the restaurant industry – a dynamic approach that not only boosts revenue but also nurtures enduring customer loyalty.
The Power of Subscriptions Across Industries
Subscriptions have successfully disrupted various sectors, ranging from entertainment to fashion. This innovative strategy captivates customers by offering exclusive benefits, building a strong rapport, and fostering brand devotion. In a notable survey conducted by McKinsey in 2018, 46% of consumers reported subscribing to online streaming services like Netflix, signifying the growing prevalence of subscriptions in everyday life.
Subscriptions: A Recipe for Restaurant Triumph
The allure of subscriptions is rooted in their ability to provide more than just a one-time transaction. When it comes to the restaurant industry, this model opens the door to a myriad of possibilities. Subscriptions can be harnessed in diverse ways, catering to the unique needs and desires of customers, all while fostering lasting relationships.
The Essence of a Subscription
At its core, a restaurant subscription involves customers paying upfront for a package of services or meals to be redeemed later. For instance, the concept of “meal passes” can offer customers a cost-effective option compared to purchasing individual meals each time. Alternatively, an unlimited options model allows patrons to pay a single rate for limitless access to specific menu items or dining experiences, similar to Olive Garden’s innovative Never Ending Pasta Pass.
Benefits Beyond the Plate
The appeal of subscription-based offers extends far beyond financial savings. While cost-effectiveness is undeniably attractive, customers are also drawn to the convenience, recognition, and exclusive perks that subscriptions can provide. Here’s how restaurant operators can use subscriptions to their advantage.
“1 in 6 consumers who are not currently subscribers are “very” or “extremely” interested in being provided a restaurant subscription service” Paytronix Subscription report 2022
There are many ways that you can use subscriptions to create loyalty amongst your customer base & keep those loyal customers coming back for more.
Exclusive Insider Access: Offer subscribers early access to new menu items, seasonal specials, or themed events. This exclusive insight makes customers feel like valued insiders, fostering a sense of belonging.
Loyalty Acknowledgment: Implement tiered subscription levels that reward long-term patrons with increasing benefits. Recognising and appreciating loyalty can significantly enhance customer satisfaction and encourage continued engagement.
Personalised Dining Experiences: Leverage subscription data to tailor offerings to individual preferences. Whether it’s dietary restrictions or flavor preferences, providing personalised experiences amplifies customer delight.
Curated Culinary Journeys: Craft subscription packages that guide customers through unique culinary adventures. These can include tasting menus, food and wine pairings, or themed dining events, adding an element of excitement and discovery.
Simplified Ordering Process: Streamline the ordering process by allowing subscribers to pre-select meals, reducing wait times and enhancing the overall dining experience.
Community Building: Foster a sense of community among subscribers through dedicated events or online forums where like-minded food enthusiasts can connect and share their experiences.
As the restaurant industry continues to evolve, embracing subscription-based offers has become an essential ingredient for success. With the power to drive revenue, build customer loyalty, and provide a personalised dining experience, subscriptions offer a unique way for restaurant operators to stand out in a competitive landscape. By combining convenience, recognition, and enticing perks, restaurants can create a recipe for long-term success that leaves patrons craving more – not just for the food, but for the unforgettable experiences that come with being a valued subscriber.
