Donald Burns explains why loyalty programs work for restaurants. Acquiring a new customer costs five times more than keeping one, and boosting retention by just 5% can raise profits 25 to 95%. Loyal customers spend 67% more than first-timers.
Five times more.
25% to 95%.
67% more.
According to Bain and company, it costs five times more to acquire a new guest than it does to keep an existing one. That's right, a loyalty program is key to keeping your guests hooked. Coming back. Harvard Business School found that increasing guest retention rates by a mere 5% can actually increase profits anywhere from 25 to 95%. And according to Annex Cloud, loyal guests tend to spend 67% more than first timers. By offering irresistible rewards and incentives through a loyalty program, you're going to forge an unbreakable bond with your guests that keep them coming back and again and again and again.
If your restaurant only works because you work 80 hours a week, it doesn't work.
