Past Client

Paytronix Systems

Paytronix Systems is an ‘all-in-one’ customer experience platform for online orders and delivery services. Primarily, it has features such as personalization, advanced AI, and built-in reward programs to help its clients drive recurring revenue.

Problem/Solution: The team at Paytronix Systems has built out numerous reports and webinars, however, the organic traffic to these pages is low. Most of their organic searches are linked to restaurant brands and reward programs. Their top competitors, such as Touchbistro and Marketing360.com outrank them on numerous keywords such as contactless ordering, best loyalty programs in 2022, online ordering system for restaurants. contactless dining, artificial intelligence restaurant.

The other challenge is that the vast majority of primary keywords that we wish to target for Paytronix are low search volume, meaning that they don’t get a ton of monthly searches. This is common for software solutions that solve a relatively niche problem.

When doing keyword research on SEO tools, most people look for long tail keywords or high volume keywords. The challenge is that the primary product related keywords for Paytronix are neither: they are low volume and not long tail.

This is where SaaS Semantics comes in. We went in and researched all of the primary solutions pages on the Paytronix websites and generated general ideas for keyword topics based on the use cases for each solution that was offered.

From there, we had our own list of potential topics. We then go on a hunt and input our keyword selections into SEO software to find data on which keyword candidates would work best. In some cases, the keywords selected had limited Search Volume potential. In those kinds of circumstances, we then go and extrapolate to find other phrase match and broad match keywords relating to those terms.

During our initial research, we have identified a few primary keywords that we wish to target:

  1. Order system for restaurants
  2. Loyalty program for restaurants
  3. Rewards programs for restaurants

Paytronix is already ranked for these terms, making it easy to develop Content Hubs around the pages in which they rank.

In the sample above, we have a sample of a content hub structure based on semantic relevancy and association for the primary keyword “loyalty program for restaurants”.

The next step is to build out all of the supporting content, such as “restaurant loyalty program providers”, “restaurant reward programs”, etc. and internally link these pages with the correct anchor text to both the hub page and any other semantically related pages shown in the visual.

Once this content has been developed, we then will proceed with increasing the authority of the content hub page as well as the other new pages as well. We achieve this by building highly relevant backlinks on authoritative websites. We also will use the right anchor text selections when building these quality backlinks to ensure that we are passing the right signals.

The final step in the process is to ensure that we are appropriately tracking keyword ranking for the “loyalty program for restaurants” page both on Google Analytics, Google Search Console, and SEO Software. We will want to track the user journey from Organic Google Search for the landing page to see how many new leads come in the door from our efforts over a 6 to 12 month period.

The final report will be provided in a Google Data Studio presentation showing the ROI from the campaign and presented to the client.

The main topic will be: restaurant loyalty programs ideas

The article needs to have the anchor text “restaurant rewards programs” and also “loyalty program for restaurants”.

5 Restaurant Loyalty Program Ideas That Shift Consumer Habits to Your Favor

Loyalty restaurant programs are the new kids on the block in the casual dining world. With the advance in technology, we've evolved from the physical punchcard system and traded it in for more savvy and personalized applications.

Restaurants that implement loyalty programs gain fast-track access to their customers’ data which can help them better understand market trends and customer preferences, as well as save the guesswork in the types of promotions and offers that will accrue the most ROI.

The main purpose of loyalty programs is to incentivize repeat business and increase the average order value. The statistics show that restaurants derive the most profit from “sustainably loyal customers”, as stated in Harvard Business Review, as opposed to one-offs or customers that frequently switch between brands in an attempt to hunt for the lowest deal.

In other words, a restaurant’s lifeline depends on its regulars.

Loyalty programs became a staple especially amidst the pandemic, helping restaurants boost sales during the slow months. Technological integration became a priority for most restaurant businesses in order to meet their customers during the lockdown. However, solely relying on online ordering applications fails to guarantee a restaurant’s survival, especially abet all the competition on there. Restaurants, especially fast causal ones had to become increasingly strategic, borrowing from time-proven strategies to win their customer’s loyalty and wallets.

As stated in HBR, “a company must find ways to share value with customers in proportion to the value the customer's loyalty creates for the company.” The article, “Do Rewards Really Create Loyalty”, denotes the concept that not all customers are created equal. In an attempt to pulse out a competitive loyalty program, restaurants often resort to a guessing game—not understanding whether their discounts will realize larger profits in the long run.

 “Reward programs are widely misunderstood and often misapplied…many companies treat rewards as short-term promotional giveaways or specials of the month (O’Brien & Jones HBR,1995). ” The fallacy of this approach falls on the spontaneity of the offer. It encourages customers to come in once or twice a month just for the promotion, and then are free to wander to other companies on the other days of the month.

The purpose of a good restaurant loyalty program is to slowly shift a customer’s spending habits towards favoring your company over others. This can be achieved in the layers of deeper engagement and branding, as well as constant communication via the loyalty program application, whilst also keeping in mind the customer’s preexisting habits and preferences. For example, if Sally usually gets a large black coffee at 9 am each day before work, the loyalty app could send out a reminder each morning or reward Sally with a free coffee or a complimentary breakfast sandwich for purchasing a coffee 10 times throughout the last month.

The power of analytics integrated into restaurant loyalty programs is monumental. According to an American Express study, results show that personalized customer experiences increase the customer’s willingness to spend 86% of the time.

This article covers how restaurants can phase out methodless promotion tactics and instead, pivot to more innovative strategies to optimize their restaurant loyalty programs. Here are five restaurant reward programs that work.

Keep in mind, that the full potential of a loyalty program is only realized when customers make the transition from casual goers to “becoming sustainably loyal.”

Points Based Reward System

How it works: A points-based reward system is a type of restaurant loyalty program that rewards customers a certain amount of points for every dollar spent. These points can be redeemed for menu items at the restaurant. The higher number of points a customer accumulates, the higher value items they can earn for free.

Effect: Customers are psychologically motivated to become patrons of a particular restaurant because they think they’re ‘saving up’ to a reward (a free item for example).

Level up: Starting with a point system is a fair way to start a restaurant reward program but if restaurants want to go the extra level, they should think of applying a tiered system. Also, restaurants should consider wrapping the point system in a way that makes it attractive and status appealing to participate.

Example: A legendary example is the Starbucks Rewards Program. Notice, that they made the points custom to their branding with “stars”. Not only do ‘stars’ add up towards free drinks and food, but the more of a regular you become at Starbucks, the higher status you get on their tiered system. Gold is the highest tier and it used to come with a special gold card in the mail, as well as access to perks regular members don’t have like free drinks, fee upgrades like syrups, alternative milks..ect.

Starbucks not only capitalizes on the utility factor of points but plays to the psychological need for recognition, belonging, and status. Designing a ‘gold club’ is meant to reward the highest spenders with a feeling of accomplishment.

According to reports, the Starbucks Reward program makes up 51% of US transactions.

Starbucks CEO Kevin Johnson mentioned during a Q2 call that Starbucks Reward members on average tend to spend more than non-members, prompting “more frequency and engagement over a multi-year period.”

Tips:

Keep it simple and flexible. The shift away from the item-based punch card system to a point system indicates the driving need for flexibility. Not all customers drink coffee or want one specific thing from the menu. Hence, the point system places similarly priced menu items in certain points categories, giving customers the ultimate flexibility to earn points and redeem rewards based on their preferences.

When establishing a point system, it’s important that it ultimately translates into a restaurant’s profit. A common scheme is $1 dollar for 100 points and redeeming 1000 points for a 2-dollar item. That means the customer will spend $10-$2 (discount) for a net profit of $8. And this is not accounting for the possibility they might buy additional items while they’re purchasing from your restaurant.

Subscription Rewards

How it works: A subscription-based restaurant loyalty program rewards subscribers for reaching certain membership milestones and in addition to, exclusive perks and savings.

Subscription models boomed in popularity following March 2020. Now 205 million Americans report using at least one subscription service, which was up 13% from the first quarter of 2020.

Effect: Subscription models guarantee steady and predictable revenue streams for restaurants if executed well. It also gives regular customers frequent exposure to restaurant marketing and branding concepts, increasing brand awareness and loyal buy-in.

Level up: Design value-centric subscription models based on customers’ desires and habits. Restaurants already track what people tend to buy more frequently for inventory purposes, but this data can be utilized to create a very lucrative restaurant loyalty program. For example, if people frequently buy smoothies, it might be a good idea to offer special discounts on smoothies for members.

Example: Taco Bell was suffering from low breakfast and late-night sales during the pandemic. It turned towards a subscription model and introduced the Taco Lover Pass which allows subscribers to redeem a taco a day for 30 consecutive days in hopes to increase visits from loyal customers and cross-selling opportunities.

Tips:

Eliminate the adverse: A useful tactic is to eliminate something undesirable (like delivery or additional fees) for customers that sign up for the restaurant loyalty program. To avoid additional costs or the option to skip lines can be good enough of a reason for people to sign up for a low-cost subscription per month.

Leverage higher-value deals: If you have more expensive items on the menu, you can leverage that in your subscription model giving members the exclusive opportunity to save on those items.

Transparent opt-out: Have a clear and transparent process when customers want to opt-out (builds security and trust).

Offer Set Promotional Rewards

How it works: Members receive promotions with expiry dates as part of the loyalty program that encourages them to dine in or order from you in a specific window of time.

Effect: When people associate your restaurant with having consistent deals on certain days ie. “Taco Tuesdays, Wine Wednesdays”, they’re more incentivized to visit your restaurant more consistently to capture those offers. They’re also more likely to purchase other items from the menu while they’re at your restaurant enjoying those daily promotions.

Level up: Offer exclusive promotions for the biggest spenders. This will encourage people to become more devout to the restaurant, knowing they’ll have access to better promotions than the regular customers on top of the daily promotions.’

Example: McDonald's frequently offers in-app promotions with select expiration dates during the summer months—including dollar day drinks and cones. Previously, these deals were offered to everyone but since the pricing change and introduction of Mcdonalds My Rewards, discounted prices are only accessible to customers who have the loyalty app. 

Tips: Perform a membership audit to ensure people aren’t taking advantage of the system and signing up with multiple email addresses.

Online Rewards

How it works: Customers get rewarded when they place orders through mobile. For example, get a free item when you order through the app 6 times.

Effect: Customers who sign up for the app automatically get exposed to consistent restaurant messaging and reminders to purchase their favorite items. 77% of consumers report being interested in accessing loyalty programs through mobile devices.

 Having customers download a loyalty program app is the fastest way for a restaurant to collect information on customers in order to better target and identify their regulars and create better experiences for them.

Level up: Ensure the mobile experience is as user-oriented as possible. Studies have shown that adding gamified experiences boosts user engagement. Peet’s Coffee is a national coffee brand that partnered with Paytronix to introduce the Peetnik rewards program. Using Paytronix’s white label customer experience platform, Peet’s Coffee was able to integrate their systems and customize an app to their brand aesthetic. Only after six months of integration, did Peets Coffee see a 350% increase in membership as well as a 47% increase in loyalty check-ins.

Example: Chipotle launched its online rewards program in 2019 and since the program has grown to 23 million members according to Forbes. CEO Brian Niccol stated that “the program is driving transactions in frequency and allowing companies to effectively distribute content and drive deeper engagement.”

Tips: 

Make it interactive: Pair your loyalty program with a point-based system with gamified elements.

Make it seamless: Ensure your online reward program matches your in-venue rewards program for a seamless customer experience

Make it attractive: Waive the delivery fee for members that cross a certain threshold of points (ensure profitability first).

Referral Codes

How it works: Introducing a referral program as part of your restaurant loyalty program is a smart way to introduce new customers to your brand, whilst rewarding your regular promoters with incentives. Members who send a referral promotion to friends or family get a discount or additional points, whilst the referee gets a welcome bonus or promotion to try out the restaurant’s products.

Effect: Word of mouth is a classic sales and marketing technique that allows more customers to come to your restaurant by leveraging your existing customers. People who promote your brand for you are more likely to hold your brand in higher regard, hence, become loyal patrons.

Example: GrubHub is one of the leading online delivery services. Their refer-a-friend campaign forms the basis of their engagement and branding strategy. Grubhub rewards their loyal customers $12 for every friend they refer that signs up.

Tips:

Switch it up: Referral programs can be easily used one time and forgotten if companies don’t get little creative. One way to keep referral programs attractive is to theme them. Offer special deals during holidays (especially ones where bringing a plus-one is more intuitive) ie. Mother’s Day/ Father’s Day/Valentine's Day.

Add Influencers to the mix: A way that companies have been reaching out to more people in one go is to sponsor posts for micro-influencers. For a set fee, these micro-influencers will share their experience at the restaurant which usually includes a full review accompanied by high-quality photos. This additional marketing can influence buy-in as these influencers are known to build loyal communities.

Conclusion

Loyalty forms the foundation of any restaurant’s profitability and future. As more companies have switched to apps and online reward programs to incentivize their customers to be loyal, your restaurant should not miss out on these opportunities. 

Done right, restaurant loyalty programs can increase your profits during slow months and add more predictability especially if you introduce a subscription-based model.

One mistake that restaurants take is to go with the most generic option and resort to guessing and spontaneity when putting out offers. 

Ensure before you release your restaurant loyalty program ideas to the public, to execute a meticulous strategy to ensure profitability. Collect responses from regular customers and even offer special discounts for answering market research questions. Restaurants must ensure that what they put out is what the customers want, not what they think they want.

Follow the data and your restaurant will have a likelier chance of prevailing in the competitive market for loyalty. Don’t be afraid to experiment and retest offers until you hit that sweet spot.

And lastly, remember that loyalty takes time to build. Be patient with the results and focus greatly on customer experience and you will begin to see an organic rise in regulars.