Restaurant loyalty programs are similar to punch cards used in the past. Since times have changed, restaurants are adopting new ways to cater to millennials and Gen Z. Today, we will discuss loyalty programs for restaurants and how they can cater to their needs.
Gen Z and Millennials expect more from loyalty programs than earlier generations.
Newer generations like Gen Zs and millennials have different priorities than the previous generation and new generations prefer experiences over basic discounts.
The fear of missing out (FOMO) can be a powerful motivator. However, a study by Credit Karma revealed that dining out is the activity most people are willing to forgo in favor of other entertainment, with Millennials and Gen Z leading the pack at 33% and 35%, respectively.
But what if you could harness that FOMO to keep your customers coming back to your restaurant?
The opportunities are limitless.
You could offer loyalty program members perks like early access to new menu items or exclusive invitations to special events, such as drink tastings, reserved only for top-tier patrons.
Every one of us is using mobile phones and other technologies. It won’t be wrong if I say that these technologies are constantly collecting our data and analyzing it to help improve their bottom lines. Restaurants can utilize all this data to target every group of individuals because hyper-personalized rewards will make your customers feel seen and heard.
Gen Zs and millennials love to spend their time with technology. After all, they have grown up with a piece of technology in their pocket. Therefore, restaurants need to improve their tech in restaurant loyalty programs to cater to new people effectively
Every person nowadays needs a mobile phone. Moreover, Gen Z and younger generations are digital natives. A well-designed restaurant loyalty app should provide a seamless experience, enabling customers to explore your menu, place orders, and make payments while also tracking their rewards points and engaging with your business. Additionally, it should keep them informed about events, new menu offerings, and other exciting updates about your restaurant.
Push notifications are effective, but you have to be very smart about them. According to a collaborative study of PYMNTS and Amazon Web Services, every customer receives communication through an average of 1.7 channels. These can be emails, website pop-ups, ads on social media, and push notifications. With too many notifications, the chances of getting neglected are higher. Therefore, be sure to plan your push notifications strategically.
Push notifications can be an effective way to encourage loyalty members to re-engage with your business. You might send personalized messages offering a discount to guests who haven’t visited recently, alert them to limited-time deals, or highlight exclusive perks available during their birthday month.
Social media is the ultimate tool for businesses and enterprises. You can drive a lot of engagement and retention from your social platforms. You can also transform your customers into micro-influencers. This strategy will create a FOMO situation that everyone wants to fill up. It also helps your restaurant to come up as an active member of the community.
Create your pages on Facebook, Instagram, and LinkedIn and engage with your customer base. Post images of new dishes and tell people about new deals and exclusive offers. This strategy will help you retain your customers for a longer time.
Overall, millennials and Genz’s create a big part of the population and engaging them effectively can grow your sales and business. Social media and push notifications really engage your customers with your brand and give them the feel of remembrance. Once you make your customers feel special, it will be much easier for you to retain them.
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