Loyalty Overview

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Description

Loyalty is used to build up points and credit (dependant upon POS capabilities), utilized in tiered rewards that provide guests with incentives to show appreciation for their continued business.

 

Use Flexible Loyalty to create a rewards structure that fits your brand and keeps guests coming back for more:

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Credit & Tier Based Loyalty Programs are available (and dependent on POS capabilities):

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Details

Best Practices

The following are some Best Practices to take advantage of while setting up a base loyalty program:

  • Identify Goal: Identify the overarching goal of your loyalty program.
    • Is the goal to increase order frequency, increase average cart size or anything else?
    • Ex: Goal is to increase the order frequency of guests.
  • Determine Structure: Determine the structure that your loyalty program will follow.
    • The Dollars-to-Points structure needs to be determined and the ratio of it (i.e., 1:1, 10:1, etc.)
    • Ex: Loyalty Program Structure is for every $1 spent, the guest earns 1 point.
  • Set Up Rewards System: Set up a rewards system that your guests can use to earn credits for.
    • The outcome of earning points needs to be stated (e.g., Credit, Discount, Perks (swag, gifts, etc.)).
    • Ex: Rewards system that is set up allows guests to earn credit towards their next order once they reach the set threshold.
  • Quantify Rewards System: Create a measurable rewards system based on your needs.
    • The value of the Credit, Discount, Perks (that a guest should earn once they hit the point threshold) needs to be identified here (e.g., Avg Menu Prices, Order Frequency, COGS).
    • Ex: The rewards system is quantified so that for every $100 spent (100 points earned), the guest would receive a $5 credit for the next order.
  • Create Tiers: Utilize the creation of a tiered system to incentivize your guest’s behavior.
    • Tiers require a different amount of points with rewards varying accordingly.
    • Ex: The tiers are set up so that upon spending $2,500 (lifetime spend), guests will earn “V.I.G.” status, which would earn them $10 credit for every $100 spent (100 points earned).
  • Earn Points: Identify all possible ways to earn points for your guests to take advantage of the loyalty program.
    • Alternatives to providing loyalty to guests (e.g., sign-up bonus, birthday rewards, etc.)
    • Ex: Other possible ways to earn loyalty points would be a $5 sign-up bonus, a $5 birthday credit ($10 birthday credit for “V.I.G.” guests).
  • Communicate: Inform your guests of the loyalty program to promote and bring awareness.
    • Loyalty guidelines can be easily understood and provided through in-app and web copy.
    • Ex: Communication of the loyalty program would be to “Order from the menu, earn points, and redeem rewards.”

 

Customizing Loyalty Systems

Customize our Loyalty Systems to take full advantage of them: 

  • Select Rewards
    • Take control over what you offer, whether it's the spend requirement or the loyalty reward.
  • Add Tiers
    • Customize the lifetime spend requirement by adding up to three (3) tiers on top of your base tiers.
  • Design Loyalty
    • A preview of your loyalty rewards sections will be provided before the design phase starts.
  • In-Store Enabled
    • With Toast, you can enable guests to scan a QR Code for payment and loyalty accruing & redemption all in one. This is dependent on your POS. 
  • Re-engage Guests
    • Maintain a list of your guests' loyalty and rewards progress; this data can be used to maximize their return by marketing drip email campaigns.

 

Using Bonuses

There are Credit and Point Bonuses that you can use to increase the activity of your guests:

  • Birthday Credit:
    • Provide guests with Birthday Credit, which can be built into your loyalty tiers or as a standalone.
    • Example: Here's $5 for your birthday!
  • Points or $ Signup Credit:
    • Reward guests with credit so that they can be encouraged to make purchases.
    • Example: Earn $3 when joining our reward program!
  • 2x, 3x, 4x Points Days:
    • Motivate your guests; provide a lead time of one (1) month for assets and once the assets are created, provide a one (1) week lead time.

 

Managing Loyalty Programs

Managing Loyalty Programs ensure that you have what you need to take full advantage of your Loyalty options:

  • Analytics & Reports:
    • See how much loyalty that your guests are redeeming and how much loyalty you are gaining.
  • Email Marketing:
    • Re-engage guests (who have unspent loyalty to use) through targeted drip email campaigns.
  • Award Loyalty:
    • See the level of loyalty that your guests are achieving and reward them for their efforts directly from the Lunchbox Admin Dashboard.

 

Limitations

Tiered Loyalty

  • If you decide on a tier-based program with item-based rewards, loyalty conversion is not automated. You will be responsible for communicating via email to your patrons when they unlock item rewards on each tier.
    • Lunchbox’s campaign program, Campaigner, can support automated workflows as patrons reach each tier threshold. 
  • POS systems (like Toast) can only execute Item or Discount based rewards; MMM for Toast is needed because the Lunchbox Team has to input the ID.
  • Rewards are Restaurant Group-specific, not location-specific.

Brand Swag

  • If you’d like to incorporate swag into your loyalty program, there are 3 options. 
  • Add the item to your Lunchbox menu and ensure the item is available at each store. Create a promo code for patrons that unlock this item. Patrons go through the normal checkout process to receive their item. 
  • Create a campaign and promo that links to your Shopify or other digital storefronts to have items automatically shipped to patrons that unlock the reward. 
  • Communicate a list of patrons that have unlocked the swag reward to each store. Manually verify in-store each patron that has unlocked the reward.

 

 

FAQ

  • Can Item Based Rewards be redeemed?
    • Yes, but only through web and app currently. All IDs must be consistent throughout all locations (i.e., MMM for Toast).
  • Do my customer's points move over?
    • If a client uses a specific loyalty system, it is possible to upload accrued points and guest info using a simple export/import.
  • Is Bank-Based Loyalty available?
    • It is currently in development and will be available by the end of 2021.
  • What does loyalty cost?
    • Loyalty costs $50 per location, per month (before discounts).
  • Do I need a Loyalty Program for sign-up bonuses?
    • While a Loyalty Program is not needed for use of Wallet, if a Restaurant Group wants to offer a sign-up bonus, the Loyalty System must exist alongside to support it.
  • Can the Lunchbox Loyalty System be used with another Loyalty System?
    • A restaurant group can use the Lunchbox loyalty system alongside another loyalty system. However, this is at the restaurant group's own risk, as the set-up may result in a poor patron experience due to the lack of communication between the two systems
  • Is it possible to translate a client's specific Loyalty System into one of Lunchbox's Loyalty Systems?
    • If a client uses a specific loyalty system, it is possible to translate it into one of Lunchbox's loyalty systems.
  • What is the difference between Scan to Pay and Scan for Loyalty?

    • Scan to Pay processes orders through the Lunchbox Tender setup in Toast. This means that payment will be processed through Lunchbox’s Stripe processing and in the Lunchbox Admin Dash will be labeled Toast Tender. With Scan for Loyalty payments are processed with Toast processing. Through guest lookup or scanning, Lunchbox finds the transactions processed in Toast and attributes points. These orders will be labeled toast in the Lunchbox Admin Dash.

  • How can guests accrue loyalty points for in-store purchases?
    • Guests can collect points at checkout through the Scan to Pay or Scan for Rewards process. Alternatively, guests can be looked up in your Toast POS (phone number lookup recommended), and attributed points for their in-store transaction.

 

 

 

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