A complete guide to food and beverage loyalty programs

The food and beverage industry can be one of the most competitive in the world. No matter where in the world you are, there’ll be an abundance of restaurants, cafés and grocery stores all competing for customers. With so much competition, customer retention is essential. Giving customers a good experience will keep them coming back to you, helping to build brand loyalty, and giving you a vital edge over competitors. There are many ways to do this, but one of the most prominent methods is through a loyalty program.

A good loyalty program could be the key to retaining customers. Studies show that a majority of customers will let the presence of a loyalty program influence their purchasing decisions, while in the US loyalty programs have seen a huge increase in membership over the past decade. Loyalty programs can play a big role in customer retention, and as such it is important to get them right.

There are many different types of loyalty programs that you can make use of, from points programs to more complex tiered systems. When it comes to the food and beverage industry, there are a few options available. Ideally, your loyalty program will be convenient, represent good value and keep the customer engaged for a long time.

Most supermarket chains in the UK feature some sort of loyalty program, often in the form of points cards. Some of the best grocery loyalty programs offer points in exchange for purchases, which can be accumulated and traded for different rewards, such as a voucher for the supermarket or just money off at the till. 

For example, look at the Tesco Clubcard: For every £1 you spend in Tesco you get 1 reward point. Once you reach 150 points you can use them to acquire vouchers which can be used in store. There are also other benefits available to Clubcard owners, including exclusive discounts and the ability to send points at a range of partner retailers like Pizza Express or Bella Italia. Tesco also has the option of a bonus scheme which costs £7.99 a month and gives the customer additional benefits, including a 10% discount in store. 

Points programs such as these go a long way to improving customer loyalty; if you’re accumulating points every time you shop at a certain store then you’re more likely to continue shopping there rather than at a rival business. While they’re very prominent among supermarkets, they can also be used for virtually any business in the food and beverage industry.

For grocery businesses, another loyalty option is to provide a discount on delivery. Many customers prefer to shop online and have their food delivered. With a loyalty program you can offer a discount on the cost of delivery or even free delivery if a certain threshold is met.

Final thoughts: Is a loyalty program worth it?

Having a loyalty program could make a key difference in retaining customers and inspiring loyalty. With so many different schemes available, it’s important to get it right to entice and keep customers and build your brand.