The. Buzztime. Bar Survival. Guide VOL. 8 MARKETING The Ultimate Guide to Perfecting Customer Loyalty NTN Buzztime, Inc.
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1 The Buzztime Bar Survival Guide VOL. 8 MARKETING 2014 The Ultimate Guide to Perfecting Customer Loyalty
2 2 5 VITAL ELEMENTS OF A GREAT LOYALTY PROGRAM Loyalty programs are increasingly becoming an integral piece of the marketing strategy for bar and restaurants. Implementing a loyalty program is a way to reward your loyal customers and give them an incentive to continue their relationship with you and your business. 5 5 WAYS TO CREATE MEMORABLE CUSTOMER EXPERIENCES Creating unique customer experiences don t just happen, nonetheless they are essential to building loyalty and increasing sales for your bar or restaurant. Table of contents 7 HOW TO USE SOCIAL MEDIA TO DRIVE CUSTOMER LOYALTY PROGRAMS With the explosion of social media, there has never been a better time than now for bars and restaurants to get on board with a customer loyalty program CLEVER CUSTOMER LOYALTY PROGRAMS By now, you re used to companies offering loyalty programs, but wouldn t you like to offer something a little more interesting than a card swipe for your customers? Check out these ideas for clever customer loyalty programs. 1
3 5 vital elements of a great loyalty program Loyalty programs are increasingly becoming an integral piece of the marketing strategy for bar and restaurants. Implementing a loyalty program is a way to reward your loyal customers and give them an incentive to continue their relationship with you and your business. According to an article by Fast Company, researchers tallied more than 2 billion loyalty program memberships, which means the average U.S. household belongs to about 18 different loyalty programs. This proves the American people truly enjoy and value loyalty programs. Remember, your top customers are 5-6 times more valuable than the other 90% of customers. Building a Loyalty Program There are key components that need to be present to make a loyalty program coincide with your overarching business goals and strategies and ultimately satisfy your customer base. Below are the top 5 key components of a successful loyalty program: 1 Motivate Customers. Properly planned and executed programs can foster a relationship between you and your clientele. You must create a program that appears to actually exude a reward. Moreover, you and your staff must convince customers to join the program based on its inherent benefits. Do not arbitrarily target random customers. If you notice a habitual pattern of the Jones family enjoying breakfast every Sunday, you should approach them with an offer to receive a free stack of pancakes once per month. Let customers know they will receive a free appetizer or dessert during their current visit if they sign up for the loyalty program. This pressure may entice them to sign up for the loyalty program on the spot. We all love instant gratification. 2
4 2 Connect with your customer base on a personal level. Your guests need to feel as if they are more than a mere transaction, a revenue-generating piece of the operations puzzle. Customerspecific prizes are a great way to approach this concept. Your program should permit you to track purchasing records and thus, you can tailor your rewards based on each patron s preference. Remember, if customers feel special, they will share the feeling with their friends and family. Positive word-of-mouth is an easy way to increase traffic. Consider randomly giving an added bonus. If your customers feel an emotional bond with you and your restaurant, they will feel obliged to frequent your restaurant. 3 Keep it simple. First and foremost, facilitate a quick and easy registration process. The last thing you want to do is annoy your customer or deter him or her from signing up for the loyalty program. Buy 9 and Get 1 Free can be a bit overwhelming for the average consumer. Think of an alternative approach to rewarding repeat business. Make the reward attainable or your customers will disregard your program entirely. Match your rewards to your restaurant concept. If you are a Chinese restaurant, offer a free quart of fried rice. If you are a Mexican restaurant, offer a free jar of homemade salsa. Consistency is key. 3
5 4 Focus on points, not dollars. Some customers may be skeptical if you are asking them to spend x amount of dollars. They may wonder if they are actually benefiting from the program or if they are simply adding to the restaurant s revenue. By delegating points, it not only makes it more of a game, but also removes that level of skepticism. During slow shifts or times of the season, offer extra points to loyal customers. 5 Measure your successes Seek customer feedback and ways to enhance your current program or create a comprehensive, worthwhile loyalty program. After all, this initiative is for your customers and you want it to be successful. Actively utilize feedback. Effective programs measure and track spending habits. This can help project future sales and help you tailor programs to specific customers. Evaluate the program after a set amount of time. Remove any pieces that are not functional and add any that you have found would be beneficial. Be sure to keep restructuring the program to one-two times per year and communicate changes to your customers. People do not like to be blindsided. 4
6 5 Ways To Create Memorable Customer Experiences Creating unique customer experiences don t just happen, nonetheless they are essential to building loyalty and increasing sales for your bar or restaurant. Here are five guaranteed ways to deliver those unique and memorable experiences that will have your guests coming back for more. 1) PERSONALIZE THE EXPERIENCE Your guests will remember and appreciate the small gestures that show you care about them! It could be an message to wish them a happy birthday with a special offer, or personally visiting their table to see how they are doing. These simple actions of gratitude and personalized service will go a long way to make your guests feel special and create and lasting impression. 2) CREATE A COMFORTABLE AND PLEASANT ENVIRONMENT Tap into Buzztime BEOND, our customizable entertainment platform for bars and restaurants, to liven up the crowd and keep your customers entertained longer. A 2008 Arbitron study found that Buzztime players spend 27 minutes longer and $5 more per visit. Create signature live events around these games challenging guests to play and compete against each other for a chance to win fun prizes. BEOND makes it easy for customers to participate. They can play games from your TVs, our Buzztime BEOND tablets or by downloading our mobile Playmaker app to their own smartphone or tablet. 5
7 3) CREATE A UNIQUE ATMOSPHERE REPRESENTATIVE OF YOUR CONCEPT Chris Sturk, author of the Swipely Payment Marketing Blog, shares in a recent blog post entitled, Creating Unique Restaurant Experiences, examples of great restaurants that have transformed their environment to create a truly unique dining experience for their guests. One of them is Casa Bonita, a Mexican restaurant in Lakewood, Colo., which has designed its 52,000-square-foot-space to replicate a Mexican village with cliffs and caverns, as well as live shows that include cliff divers, puppet shows, multiple arcades, table games, and a gift shop. While exceptional food, service and atmosphere the three essentials for any successful bar or restaurant cannot be overlooked, make sure you re also going that extra mile to create unique and memorable impressions that will turn them into loyal customers for a lifetime. What do my guests want? 4) SHOWER YOUR BEST CUSTOMERS WITH RECOGNITION What better illustration of this than The Palm, the fine-dining steakhouse notorious for showcasing caricature animations of their important guests, from local business leaders and dignitaries to sports figures and celebrities. But you don t have to reserve such an honor to the Rich & Famous. Perhaps one of your regulars loves a cheeseburger his own way slightly off-menu. Why not turn it into a new menu item and name the burger after him in his honor? 5) CAPTURE AND SHARE UNIQUE AND SPECIAL MOMENTS When you encounter guests enjoying a unique and memorable experience in your bar or restaurant, capture and share it, such as a romantic wedding proposal at Table 23 or the couple celebrating their 70th wedding anniversary. Your social media platforms like Facebook and Twitter are perfect mediums for showcasing those special moments with your fans and customers. 6
8 how to use social media to drive customer loyalty programs BEST HAPPY HOUR EVER! With the explosion of social media, there has never been a better time than now for bars and restaurants to get on board with a customer loyalty program. Social media and customer loyalty programs go hand in hand. People who are incentivized with perks for eating, drinking and visiting your bar or restaurant will be even more motivated to tell their fans and friends about it on their own social networks. So how can your bar or restaurant leverage the power of social media to increase customer loyalty? Host fun social media contests that encourage customer loyalty: For example, invite Facebook users to like your business page for a chance to win a free gift card or certificate to your restaurant. And just for liking your page, they will receive an exclusive discount during their next visit. Other contests might also include drink and recipe contests, giveaways around holidays and special days, etc. Reward customers with badges on Foursquare: Foursquare rewards customers with badges for checking-in at your establishment. The more badges they earn, the more features they can unlock to get even greater rewards and discounts at your bar or restaurant. 7
9 Provide opportunities for new customers to sign-up for your loyalty program on your Facebook page: With a simple sign-up form, you can easily capture new loyalty program members directly on your Facebook page. Always give loyal customers the inside scoop: It s important to make your loyal customers feel special. Invite them to exclusive events at your bar or restaurant on your Facebook page, or simply spread the word about a new menu item. Regardless, make sure they are the first to know about upcoming news and events. Go digital with stamp cards: There are third-party apps and tools like Stampt you can use to implement a digital stamp card for customers. Digital stamp cards make it easy for customers to collect and redeem rewards right on their smart phone, while at the same time encouraging greater social media interaction for your business. 8
10 Keep the rules simple: Keep your loyalty program simple and make sure that the rules to participate are easy to understand. It s essential, especially in the world of social media, to keep your loyal customers happy and saying good things about your bar or restaurant and your loyalty program. LIKE, SHARE, WIN Sweeten the perks for your most connected customers: Offer additional rewards to your loyal customers who are connected and telling their friends about your bar or restaurant on their social networks. For example, create incentives where they earn $1 at your bar or restaurant for every friend they refer on Facebook who checks in. With these easy tips and strategies, you ll be on your way in no time to maximizing social media to build a winning customer loyalty program. 9
11 4 CLEVER CUSTOMER LOYALTY PROGRAMS By now, you re used to companies offering loyalty programs. You probably use a loyalty card when you shop at the grocery store, and you might use one for your morning latte at the coffee shop. But wouldn t you like to offer something a little more interesting than a card swipe for your customers? Check out these ideas for clever customer loyalty programs. 1 MAKE IT SPECIAL. It might not sound like a good idea to have your customers pay something up front to join your loyalty program after all, aren t loyalty programs supposed to save customers money? But if you market your loyalty program as something elite, for special customers, you can make it seem attractive. Of course, this means you ll really have to deliver with your rewards. Offer deep discounts and special freebies for customers in the program. 2 TURN IT INTO A GAME. Loyalty programs don t have to be totally boring. Make yours a little more interesting by making it a game! Give your customers a punch card, and when they fill it up with visits or meals, allow them to enter into a raffle for a big prize. If you make it something more exciting than just a typical discount (for example, a large gift card), your customers will be eager to enter. Of course, you re not limited to raffles any luck-based game will do the trick. 3 DO SOME GOOD. What s better than helping out your community? Although customers love receiving rewards, they also love giving to others. For every so many meals a customer orders, you can offer to donate money, food, or winter coats to a local charity. This has the added benefit of showing that your business cares about others. 4 PARTNER UP. You don t just have to offer your own services as a reward! Are there other businesses nearby that pair up well with yours? For example, you might consider partnering with a local movie theatre to offer a Dinner and a Movie deal. If a customer purchases ten meals from your restaurant, they ll receive a gift certificate to the movie theatre. This shows customers that you care about their interests, not just your bottom line. 10
12 Thank you for reading! Buzztime has been driving business to bars and restaurants for more than 30 years. Keeping customers entertained is our life s work and our area of expertise. In fact, our BEOND platform delivers entertainment to over 4.6 million players at over 3,000 locations nationwide in the form of exciting games and live events. We can help you to boost sales, draw a crowd, engage your customers and drive traffic on slow nights! To learn more, CLICK HERE
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