I'm thinking of introducing a loyalty card scheme. Any advice?
The Caterer - 20 July 2006

I'm thinking of introducing a loyalty card scheme. Any advice?

Guy Holmes, Captivate Restaurants

Loyalty card schemes are a good way of enticing customers to return and more frequently. Here are four main points to remember:

Build your customer database.

A loyalty scheme is a great way to do this. The best way is to present customers with a small form for them to enter a few details with a loyalty card attached. But use the information wisely - overuse of a database can result in people asking to be taken off.

Make it a good deal

The better the deal, the more likely and more often people are likely to use it. For added value, try organising a joint venture with neighbouring businesses. For example, loyalty card members could also get discounts at the local gym, beauty salon, florist, etc, and any business that accepts your loyalty card for discounts would also give their existing customers the form and loyalty card as well. The beauty of this kind of promotion is that everyone benefits: your restaurant and the marketing partners reach new customers, and the customers get special discounts.

Time limitations

It's always best to run special offers for a limited time only, such as three months, then change the offering. For example, for a three-month period loyalty card holders would be entitled to a bottle of house wine when ordering two main courses. Three months later this could be changed to a discount of 15-20% off the total bill. This ensures that people act on it sooner rather than later.

Target new customers as well as old

Include loyalty card information on your website with an online form and post the card to applicants. You could also do a mail-shot to local residents and businesses that includes the loyalty card.