Restaurants: forget loyalty and focus on repeat custom instead

Loyalty: a close emotional connection to a brand. You can't bribe true loyalty with a points scheme. You're more likely to find a pot of gold at the end of a rainbow.

So does that mean that you should ignore points-based "loyalty" schemes? Not at all. They have tremendous value but their benefits are much more functional than emotional.

So what are they so good at?

1. Repeat custom: People appreciate being recognised and rewarded for their repeat spend, so they will exhibit "behavioural loyalty" to earn these rewards.

2. Create a point of difference: A good loyalty programme will incentivise diners to choose from a smaller pool of restaurants, as they receive something extra for dining in the members of the programme.

3. Analysing and utilising data: Gain a deeper understanding of your customers and use this insight to market more effectively to them.

With LUX we take it another step further:

1. Targeting valuable customers: LUX is distributed to employees as PAs within the financial and professional services sectors. These corporate professionals are high-spending, price in-sensitive due to their expense budgets and often dine during the working week. Restaurants love them.

2. Utilising technology: LUX is a tech startup. We utilise technology such as geo-fenced push notifications to reinforce behaviours and drive additional custom to our partnered restaurants. Many more (currently secret) features are on the way.

3. No more discounting: LUX helps restaurants to maintain their price points and enhance their brand. We help high-quality restaurants from entering into the "race to the bottom" of mass discounting, as customers pay the full price of the bill.

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, drop me an email at