Report: Why most dining loyalty programs fail

Oct. 8, 2013

Rewards Network has released a new report, "Why Most Dining Loyalty Programs Fail," that can be downloaded on the company's blog. The report focuses on six reasons most programs fail and how restaurants can succeed, including relevant marketing tactics, engaging with customers and using data to better shape their business, said Rewards Network SVP of Loyalty Megan Flynn, who will moderate a panel at the Fast Casual Summit in New Orleans next week, focusing on how successful dining loyalty programs drive sales by using data. The report will also be distributed at this presentation.

"When a restaurant invests in a loyalty program, they should be sure that it is not only bringing in more customers, but also building loyalty among existing customers. It should focus on rewarding desired behaviors with meaningful rewards," Flynn said.

Rewards Network data shows more than a 22-percent increase in dining activity with loyalty members, who are specifically targeted and rewarded to dine more often based on their past dining activity.

"Most restaurants have some form of a loyalty program, but no proof that it's actually working to build loyalty with their customers. Only concrete data, based on actual consumption, can measure success and help restaurants make informed business decisions," Flynn said.

Read more about customer experience.

Topics: Customer Service / Experience, Loyalty Programs

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