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In today’s competitive market, it is essential for takeaway restaurants to retain their customers and keep them coming back. One of the most effective ways to achieve this is by implementing a customer loyalty scheme. A customer loyalty scheme is a program that rewards customers for their repeat business. In this article, we will explore the benefits of a customer loyalty scheme for takeaway restaurants in the UK.
Increased Customer Retention
One of the primary benefits of a customer loyalty scheme is increased customer retention. By offering rewards and incentives to customers who frequent your restaurant, you are encouraging them to return. According to a study by Bain & Company, increasing customer retention rates by just 5% can increase profits by up to 95%. This is because loyal customers are more likely to spend more money and refer their friends and family to your restaurant.
A customer loyalty scheme can also lead to increased revenue for your takeaway restaurant. By incentivizing customers to spend more money, you can increase your average order value. For example, you could offer a free side dish or drink for customers who spend over a certain amount. This not only encourages customers to spend more but also increases the perceived value of their order.
Improved Customer Experience
A customer loyalty scheme can also improve the overall customer experience. By offering rewards and incentives, you are showing your customers that you value their business. This can lead to increased customer satisfaction and loyalty. Additionally, a loyalty scheme can help you gather feedback from your customers. By offering rewards for completing surveys or leaving reviews, you can gain valuable insights into what your customers like and dislike about your restaurant.
Increased Brand Awareness
A customer loyalty scheme can also help increase brand awareness for your takeaway restaurant. By offering rewards for referrals, you are encouraging your loyal customers to spread the word about your restaurant. This can lead to increased foot traffic and new customers. Additionally, a loyalty scheme can help you stand out from your competitors. By offering unique rewards and incentives, you can differentiate your restaurant from others in the area.
Case Study: Nando’s
Nando’s is a popular chain of restaurants that specializes in Portuguese-style chicken dishes. They have a highly successful customer loyalty scheme called “Nando’s Card.” The card offers customers rewards such as free meals, discounts, and exclusive offers. According to Nando’s, the scheme has over 2 million members in the UK alone. This has led to increased customer retention, revenue, and brand awareness for the restaurant.
In conclusion, a customer loyalty scheme can provide numerous benefits for takeaway restaurants in the UK. By increasing customer retention, revenue, and brand awareness, a loyalty scheme can help your restaurant stand out in a competitive market. Additionally, a loyalty scheme can improve the overall customer experience and provide valuable feedback for your business. If you haven’t already implemented a customer loyalty scheme, now is the time to start.