How to encourage loyalty from your customers and create repeat custom

Updated: Jul 16


Bribing loyalty will never work.


Why?


Because true loyalty from a customer happens when an emotional bond forms. This can’t be created through point-based loyalty schemes or discounting.


Though, discounting and loyalty schemes shouldn’t be put on the same boat. Whilst discounting can be bad for your business, loyalty schemes aren’t.


In fact, whilst they don’t create loyalty, they help you encourage it by changing the behaviours of your customers in 3 ways:



1.Repeat custom


Did you know that acquiring new customers costs five times more than keeping existing ones?


Not to mention, existing customers spend 67% more than new ones.


For these reasons, it’s crucial to focus on customer retention.


By recognising and rewarding customers for their repeat spend, they will exhibit “behavioural loyalty” to earn these rewards.



2. Analysing and utilising data


Using a loyalty programme allows you to harness more information about your customers.


You’ll be able to gain a deeper understanding of their behaviour and use this insight to market more effectively to them, which in turn, will attract and create more repeat customers.



3. Create a point of difference


Being part of a loyalty scheme is beneficial as diners are incentivised to choose from a smaller pool of restaurants.


This provides your business with a unique way to stand out from your competitors. A good loyalty programme will have a demographic of users who are exactly the target audience you want to attract, unlike discounting which can damage your brand image.




At LUX, we take it one step further:

1.Targeting valuable customers


LUX is distributed to employees of corporate companies to bring you the right demographic. These corporate professionals are affluent, high-spending, repeat customers who are often price in-sensitive due to their expense budgets. This makes them perfect for restaurants.


2.Utilising technology


As a tech startup, we utilise the latest technology such as geo-fenced push notifications to reinforce behaviours and drive additional custom to our partnered restaurants.


3.No more discounting



LUX prevents high-quality restaurants from entering into the "race to the bottom" of mass discounting.


Your price points are maintained as customers pay full price, and your brand is enhanced as you’re bringing in a demographic of repeat, affluent customers.



Loyalty isn't dead... you just can't buy it.

The great news is that you're in full control of building loyalty with your customers. It's the warm welcome from your waiters, the high quality of the food, the design of your restaurant, and the atmosphere within it.


Use a points scheme to get potential customers to (repeatedly) visit, and then it's over to you to give them an unforgettable experience to build up their emotional loyalty.


If you're interested in finding out more about LUX, please email me at: james@luxrewards.co.uk



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