Restaurant Loyalty Program: Cashback, Points, Promo Codes

A restaurant loyalty program is a bonus system that pushes customers to order again: cashback (part of the amount comes back), points (they accumulate and are spent), a promo code (a one-time discount) or a referral (a bonus for bringing a friend). The most important rule: the bonus must be smaller than your order margin.

Finding a new customer is expensive, while bringing an existing one back is cheap. That is what loyalty is for. Below we describe the four types, their difference and how to set them up.

Key points:

• Cashback and points encourage repeat orders.
• A promo code is for promos and new customers.
• A referral gets customers to bring in new ones.
• Set the bonus percentage by comparing with margin.

Cashback, points, promo code: what is the difference?

Cashback returns part of the amount to the customer's account on each order. Points accumulate in the account and are spent on an order later. A promo code is a one-time discount or gift. A referral is a bonus for a customer who brings a friend.

In Delever you set the rules from the admin panel: a percentage of the order, a bonus on the first order, double points on certain days and more.

How big should the bonus be?

The bonus percentage must be smaller than the order's margin. Example: an order is 100,000 UZS and its profit is 24,000 UZS, so 5% cashback is 5,000 UZS, one fifth of the profit. 20% cashback is 20,000 UZS: almost no profit is left.

So first calculate the profit of the order (the formula is in delivery order cost), then try a bonus starting small. Raising the percentage later is easy, lowering it upsets the customer. Check promo profit alongside the bonus: is your promo profitable.

Which channel should loyalty work in?

It should work equally in all your own channels: website, bot and app. In Delever, points and cashback collect together across channels, so a customer can spend the points earned in the bot on the website.

Loyalty doesn't work on aggregator orders, because the customer is not yours. That is why tying the bonus only to your own channel is the best reason to move a customer from an aggregator: moving customers to your own channel.

How do you set it up?

Five steps: choose a goal, choose a type, write the rule, announce it to customers, measure the result. The goal should be clear: raise repeat orders, bring in new customers, or win back those who are drifting away.

• Goal. Choose one main goal.
• Type. For repeat orders, cashback or points; for new customers, a promo code and referral.
• Rule. Bonus percentage, validity period, minimum order. Keep it simple: a customer should understand the rule in one sentence.
• Announcement. Bot, website, flyer, QR code.
• Measurement. Do customers who got a bonus order again?

What mistakes happen?

Three mistakes are the most common: too big a bonus, a complicated rule and not measuring the result. A big bonus cuts the margin, a customer doesn't understand a complicated rule, and a program that is not measured can't be seen to work.

Another mistake: giving everyone the same loyalty offer. A best customer and a new customer need different offers: RFM analysis shows that.

Conclusion

• Calculate the bonus percentage from the order's profit.
• Start with small cashback or points.
• Run loyalty equally in your own channels and measure the result once a month.

We show how to set up a loyalty program in Delever: delever.io or @delever_bot on Telegram.