Thought Leadership

Good Food Isn't Enough to Retain Customer Loyalty

Apr 29, 2019
5 questions that you need to ask to ensure that your restaurant has an effective loyalty program.

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Brand loyalty in the Philippine restaurant industry is a myth. Filipinos are adventurous yet conscious diners. They flock to the nearest convenience store to grab a meal. Good food is not enough to keep the Filipino foodie loyal anymore.

The obvious answer is loyalty rewards, but customer loyalty and customer retention are two different things. The key is to create an effective loyalty marketing strategy that is relevant to your customer’s needs, regardless of time and context.

So what exactly do you need to ensure that your loyal diners never forget you?

Here are five questions that you need to ask:

Do you have a loyalty marketing strategy in place?

Filipinos opt for instant gratification that’s why discounts and buy 1 take 1 never fail. However, you can bet that this is going to be abused almost immediately. Fixed discounts also limit the benefits of a loyalty program. You need to approach customer loyalty with a marketing objective – increase transactions or spend. There are different rewards mechanics that can help you achieve this – milestone, points or tiered membership. The key is adding a sense of fulfillment.

Can you gather real-time data?

How easily can you access data and how fast can you act on it? Having to request for data adds another layer between strategy and execution. Keep in mind that your marketing is not the only team who needs customer insights. Analytics enables you to gather data across different branches and gather nuances into one database. Real-time analytics make you nimble enough to adapt to customers’ needs and influence buying behavior. For instance, Filipinos are now lunch seekers and afternoon snackers that family dining restaurants such as Max’s now offer solo rice bowl meals.  

Can you engage your customers outside of the restaurant?