Boost engagement with store credit and referrals

Building a rewards program that incorporates store credit and referrals is an effective way to drive recurring revenue and new customer acquisition for restaurants. Like Starbucks, let your customers load store credits into your mobile app to incentivize sales and increase loyalty. Offer extra promotional credits, such as an additional $30 credit when they add $50 or more.

Store credit offers customers an incentive to return and spend more. When a customer accrues store credit by participating in a loyalty program, they are motivated to return to redeem the credit. This boosts return visits and spending. For example, you could offer $5 in-store credit for every $50 spent. Customers can then redeem the credit on their next visit, creating a cycle of return and spending.

Brands with referral programs experience a 69% faster close time on sales deals, and they have a 10% higher customer lifetime value.

Referral programs leverage word-of-mouth marketing to bring in new customers at a low cost. When an existing customer refers someone who makes a first purchase, both receive a reward like a discount, gift card, or free item. Because referrals come from friends and family, they are more likely to become loyal customers themselves. According to research, referred customers have a 16% higher lifetime value.

To implement these strategies, first, determine the rewards and redemption details for your store credit and referral programs. For store credit, decide how much will be earned at each spending tier and any restrictions around redemption. For referrals, determine the reward for both the referrer and the new customer.

Next, promote these programs across all your marketing channels to maximize participation. Feature them prominently on receipts, email campaigns, social media, and in-store signage. Your staff should also be educated about the programs so they can explain the details to every customer.

Finally, track the performance of store credit and referrals to measure their impact and make refinements. Look at metrics like the return frequency of customers with store credit, the percentage of revenue from referred customers, and the overall program costs versus benefits. Make adjustments as needed to optimize the results.

With the right program details and promotions, store credit and referrals can be valuable tools for boosting customer loyalty and acquisition. They create win-win scenarios that motivate your customers to spend more and spread the word about your restaurant.