The True Potential of Digital Loyalty Programmes

More than 1 billion people worldwide are attached to a loyalty scheme. They’ve come a long way since their advent in the 1900s and the mutual benefit they offer for both businesses and consumers is a core reason to why they’ve stood the test of time. However, the shift to digital is one of the biggest evolutions the concept has ever seen. This new phase has been brought on by a combination of extensive leaps in technology, rising customer expectations and greater attention being paid to schemes by marketers.

According to a YouGov white paper, more than three quarters of Brits are a member of at least one loyalty scheme which means most of us are familiar with their benefits. But this kind of demand has naturally attracted an awful lot of competition too so there are plenty of schemes available for consumers to sign up to, making it a little less straightforward to sway a given customer’s loyalty to just one.


Digital Loyalty Programmes for Restaurants

25% of us are a member of a restaurant or coffee shop loyalty scheme. Running one that stands out could be a major advantage in helping to win and keep your customer’s loyalty.

That’s where digital loyalty programmes come in. There is an almost unimaginable number of ways digital loyalty programmes can be implemented compared to traditional ones and restaurant POS operating systems Vita Mojo OS offers an infrastructure to build them with ease.

People still want loyalty programmes and they want them done well. A high quality, positive experience with tailored rewards allows you to differentiate your scheme from the rest of the market and open a whole range of opportunities for greater customer engagement and trust.

There’s a lot of benefits to be gained though running a great digital loyalty programme. To make sure you know how to maximise their potential, we’ve broken some of the features that can work to set your restaurant loyalty scheme apart from the rest.

1. A seamless, convenient customer experience

Most of us will be able to find our phones in our pockets much quicker than digging through our purse or wallet and quickly sorting through a dozen stamp cards. Not only does a digital loyalty scheme help streamline the customer journey at the point-of-purchase, it also offers a convenient platform for them to follow up on exactly what rewards they’ve earnt later on (a digital loyalty programme means they don’t have to be the same for everyone).

Almost exclusively, digital loyalty programmes work with an app or via an account linked online (like at Vita Mojo), and so can be accessed easily from nearly anywhere. The less customers have to work for their discounts the better, so making sure your platform has a strong combination of convenience and intuitive design can make your digital loyalty programme a winner.

2. Ultra-Personalisation

It’s a big time for big data. Never before has it been possible to keep track of individual customers in such a granular and powerful way. The explosion of data-storage at the user level and greater analysis of customer-generated data means that brands are now better equipped to tailor their offering exactly to the preferences of each individual customer.

For example, perhaps you have a customer who only ever orders coffee from you. A scheme that focuses on discounts towards meals would be a poor incentive for keeping them loyal to your brand. Accurately tracking and analysing patterns in the data means it’s possible to work out what is the best incentive for every individual customer is.

In theory, this means that a differently-structured loyalty scheme could be offered to every customer; and it’s more than possible with a well-designed, digital loyalty programme. Customers who order a lot of snacks or treats could be incentivised with a 6th one free, or those who spend the most per meal on average could be offered a 25% discount on every 3rd order.  As more data is gathered about their purchasing habits and it’s analysed, it becomes clear what works to incentivise each customer.

Software like Vita Mojo OS offers an infrastructure that can record, catalogue and analyse the behaviours of individuals to unlock countless possibilities for customer-centric, loyalty marketing which leads us onto our next point…

3. A Valuable Tool for Marketing

If you know what your customers like then you know what they want to see! The data used to create the best-structured digital loyalty programme for an individual can also be used to create marketing material that resonates with them on a new level.

It’s five times as expensive to acquire a new customer than it is to keep a current one which makes loyalty marketing one of the most cost-effective kinds. Marketers within the food and beverage industry have created schemes that resonate with customers on an incredible level through having the data on what each one of them likes and tailoring marketing content to appeal exactly to that.

You could send out a notification to a customer who hasn’t order their favourite meal in a while, mentioning exactly what that meal is. Or notify another who orders breakfast most of the time about some alternative choices they haven’t tried before (or remind them of their regular go-to).

Even further, a digital loyalty programme can provide a convenient platform to collect more customer feedback, with the positive review amplified and the negative ones acknowledged and learnt from in order to improve service and operations.

The point is, it can go far beyond what’s achievable with a traditional loyalty scheme and work  in-line with a broader marketing strategy too.

4. Boost your bottom line

Anything that can improve repeat business is great news for your revenue. So if running a digital loyalty programme is more effective at retaining customer loyalty, and more customer loyalty means more repeat business… you get the idea!

A well-designed and engaging loyalty scheme can work wonders on the numbers, making it more than likely as a worthwhile investment for your restaurant or food outlet.

So, as demands rise from the digital consumer there is greater reason for businesses to ensure they follow by offering a digital loyalty program that fulfils them. Implementing software like Vita Mojo OS provides a foundation for building an effective digital loyalty scheme. If you’d like to find out what else VM OS can offer to restaurants, food outlets and QSRs beyond an infrastructure for digital loyalty programmes, then click here to check out our product suite.

Or if you’d like to read a bit more about what we do then we recommend giving our blog about the rise of digital ordering a read.