By taking advantage of business intelligence, restaurateurs can provide meaningful incentives to customers in relevant ways, urging them to dine more frequently and spend more during each visit. That is the heart of profitable, sustainable dining loyalty programs.
In the September issue of Independent Restaurateur, Megan Flynn, SVP Loyalty and Business Development at Rewards Network, advises restaurateurs to interpret and use transactional data – the actual spending behavior of customers – to understand motivations and factors that cause different behaviors to change within different audience categories.
By utilizing an RFM (Recency, Frequency and Monetary Value) scoring system, restaurateurs can develop an optimal, personalized strategy for individually reaching customers through their dining loyalty program. Communications can be built around this model to influence return visits and additional per-dine spending based on selective offer development. In other words, avoid mass messaging and rewarding all customers equally; use actual customer transactions to award appropriately for desired future behaviors.