What is a loyalty programme?
A loyalty programme is a marketing strategy designed to encourage your customers to keep coming back. In the hospitality industry, loyalty programmes aim to incentivise repeat business and enhance customer engagement by offering rewards and benefits to frequent customers.
Loyalty programmes come in all shapes and sizes, each with their unique perks and mechanisms. Which one you choose will depend on the resources you have available, and which you feel suits your business model most closely. The most common types of schemes are:
- Points-based systems - It’s a simple but effective way to keep customers coming back for more by offering them points with every purchase so they can save them up to swap for discounts, freebies, or special offers.
- Tiered rewards - This type of programme adds a bit of excitement by offering different levels of rewards based on how much a customer spends or how often they visit. As customers climb up the tiers, they unlock more exclusive benefits. For example, a hotel chain might offer basic members free Wi-Fi, but premium members get complimentary room upgrades and late check-out.
- Membership programmes - Membership programmes may or may not involve a fee to join. Either way, they offer a host of benefits such as discounts, special offers, and exclusive event access. A good example is a restaurant group that offers a membership card, giving members a 10% discount on all meals. It’s a win-win: customers get great value, and the business secures a loyal diner.
How to create a loyalty programme
Creating a successful loyalty programme starts with setting clear objectives and understanding what you actually want to achieve. Are you aiming to boost customer retention, increase spend per visit, or encourage frequent visits? Maybe it’s a mix of more than one of these. Whatever your goals are, knowing them ahead of time will not only help to shape your programme but will also help you to set KPIs.
The next thing to do is research what your customers really want; understanding your customer base is crucial. Take time to identify what motivates them, and design appealing rewards that make them feel valued. Whether it's discounts, freebies, or exclusive experiences, the right incentives will keep them coming back.
Ensure the enrolment process is seamless and straightforward, making it easy for customers to join. Promote your programme effectively across various channels, from social media to signage, to maximise participation.
As you develop your programme, think about how it will integrate with your EPoS system. Seamless integration can streamline operations and enhance the overall customer experience, a key aspect we'll delve into next.
We’ve written a detailed guide on how to set up a loyalty programme for restaurants and other hospitality venues if you’d like to go into this in more depth.
Benefits of integrating a loyalty programme with an EPoS system
Loyalty programmes already are an important tool for obtaining customer data but when combined with EPoS capabilities, this data becomes a powerful tool in building authentic relationships. And as customers become savvier, expecting seamless services, this integration will also help you relate and cater to their needs better.
Streamlined customer experience
When your loyalty programme is integrated with your EPoS system, customers can effortlessly earn points and redeem rewards during their transactions. This seamless process eliminates the need for separate loyalty cards or apps, making it simpler and quicker for customers to engage with your programme. A smooth, hassle-free experience at checkout can significantly enhance customer satisfaction and encourage repeat visits.
Personalised marketing to drive repeat business and increase customer spend
Integrating your loyalty programme with your EPoS gives you all the information you need to be able to create hyper-personalised marketing for your customers which can help increase the customer spend and drive repeat business.
With an EPoS system that tracks customers' purchases, you can gain insights into their preferences, spending habits, and frequency of visits. Knowing those details will allow you to create personalised rewards, offers and communication, which is important for 56% of consumers who are more likely to become repeat buyers after a personalised experience.
On top of that, 80% of business leaders report an increase in consumer spending by an average of 38% when their experience is personalised.
Real-time insights
From an operational standpoint, integrating loyalty programme data into your EPoS system can help with everything from marketing to procurement decisions, and gives you the ability to respond to market trends more quickly.
By centralising all of your data across sites, you can track customer activity and spending patterns at the customer level in real-time, allowing you to instantly see which dishes are most popular among loyal customers, or which promotions are driving the most repeat business.
Reporting and analytics
EPoS systems with integrated loyalty programmes offer the powerful capability to generate detailed reports on a variety of metrics, such as customer visit frequency, average spend, and the redemption rates of specific rewards. These valuable insights are essential for assessing the effectiveness of your loyalty programme and understanding its overall impact on your business performance.
How to integrate a loyalty programme with an EPoS system
Depending on your set-up - whether your loyalty programme is a standalone system, or is a part of your restaurant's CRM, there are different ways to integrate it with your EPoS system.
1. Choose the right integration for your loyalty programme
The following table outlines the key differences between integrating a standalone loyalty programme and a loyalty module (part of a CRM) with an EPoS system:
|
Feature |
Standalone loyalty programme |
Loyalty Module (part of CRM) |
|
Data integration |
Typically limited to transactional data from the EPoS system, it may also require additional integrations or manual data entry to capture customer information from other sources. |
Seamlessly integrates with other CRM data, such as customer demographics, contact information, purchase history, and online interactions, allowing for a more holistic view of the customer and deeper personalisation. |
|
Functionality |
Primarily focused on loyalty-specific features, such as points accrual, rewards redemption, and tier management. May not offer comprehensive marketing automation or customer segmentation capabilities. |
Offers a broader range of features, including loyalty programme management, marketing automation, customer segmentation, email campaigns, and customer support tools. This allows for a more comprehensive approach to customer engagement and relationship management. |
|
Scalability |
May be suitable for smaller businesses with simpler loyalty programs and can become more complex and costly to manage as the programme grows, requires additional features or integrations. |
Offers greater scalability and flexibility to accommodate the growing needs of a business. Can easily integrate with other systems and add new features or functionalities as the business expands. |
|
Cost |
Typically more affordable upfront, but costs can increase with additional integrations or customisations. |
May have a higher initial cost, but often offers greater value over time due to its broader range of features, scalability, and potential for increased customer lifetime value. |
|
Implementation |
Varies depending on the provider. Some offer comprehensive support and training, while others may have limited resources. |
Due to the broader nature of the CRM platform, it typically offers more comprehensive support and training resources. |
|
Overall suitability |
Ideal for businesses with basic loyalty programme needs and a limited budget. May be less suitable for businesses with complex loyalty programmes or those seeking a more comprehensive customer engagement solution. |
More suitable for businesses seeking a comprehensive customer engagement solution that goes beyond just loyalty. Ideal for businesses with complex loyalty programmes, large customer bases, or those looking to leverage customer data for a variety of marketing and operational initiatives. |
Regardless of your loyalty programme setup, the next step is choosing an EPoS that will handle the integration.
2. Select the right EPoS system
When choosing an EPoS system, it's really important to consider the specific needs of your hospitality business and how well the system integrates with loyalty programmes or CRM software. Here are some factors to keep in mind:
- Compatibility - Ensure that the new EPoS system is compatible with your existing infrastructure and can easily integrate with your chosen loyalty programme software. Look for systems that offer APIs and integration capabilities.
- Features - Look for an EPoS system that includes built-in support for loyalty programmes or offers seamless integration with third-party loyalty solutions. Key features to look for include customer data management, reward tracking, and real-time reporting.
- Scalability - Choose an EPoS system that can grow with your business. It should be able to handle an increasing number of transactions and customer data as your loyalty programme expands.
- Ease of use - The system should be user-friendly for both your staff and customers. A simple, intuitive interface will ensure that your staff can quickly adapt to the new system, and customers can easily participate in the loyalty programme.
3. Ensure a smooth implementation
Once you’ve selected the right EPoS system, there are a few steps you can take to ensure a smooth integration and implementation process.
- Planning and preparation - Before you start, make a detailed plan that outlines the integration process, which should include timelines, responsibilities, and key milestones. Make sure to communicate this plan to all relevant stakeholders.
- Training - Make sure your staff not only understand how to use the new systems but also why they should. Getting buy-in from your teams will help to make the transition go more smoothly.
- Data migration - If you’re switching from an existing system, it’s really important to preserve the existing data, including historical purchase data, loyalty points, and customer profiles. Make sure that it’s easy to migrate all customer data to your new EPOS system, or that the new provider offers support with this.
- Launch and support - Roll out the integrated system in phases, if possible, to allow for any adjustments based on initial feedback and provide ongoing support to address any issues that arise, ensuring the system runs smoothly.
Ready to supercharge your loyalty programme?
In this article, we’ve discussed the importance of implementing an effective and well-designed loyalty programme. We’ve explored the benefits of integrating it with your EPoS for bigger wins and long-term growth. And we’ve shared some tips on how to do this.
Acteol, the hospitality CRM software from Access Hospitality, is designed to simplify and supercharge your marketing, ensuring you can engage customers effectively and boost your bottom line.
With seamless integration across all of our software solutions, we can help you to sync customer data, transactions, and rewards in real time for a better customer experience. Access EPoS also seamlessly integrates with a range of other major loyalty schemes.
Are you ready to transform your loyalty programme and drive better customer engagement? Contact us today to learn more about how Access Hospitality can help your business thrive.