Creating a loyalty programfor a Malaysian restaurant that caters to local tastes necessitates an understanding of the local population’s cultural nuances and dining habits. This is a step-by-step guide to creating an effective loyalty program. First, we must understand Malaysian culture, spending behavior, when Malaysians spend, and what truly attracts them.
What is the customer behavior towards restaurant loyalty programs in Malaysia?
In Malaysia, customers at restaurants, cafes, and other F&B businesses prefer simple and convenient loyalty programs. Many restaurants use loyalty apps to build their brand, but these apps are often inconvenient for customers. They take up phone storage, and if your restaurant only has a few outlets, customers might forget about your app. People don’t like downloading apps they’ll only use occasionally and often delete them after leaving the venue.
Why is it worth to use a loyalty software now?
Malaysian population is largely below 30 years old and tech savvy,
Instead, customers want a quick sign-up process using just their phone number. Pixalink offers the perfect solution with its advanced loyalty portal. Customers can easily check their points, redeem rewards, and see available vouchers and promotions through a QR scan or Pixalink’s web app. This portal can be customized to match your restaurant’s brand, theme, and colors, providing a smooth experience that boosts customer engagement and loyalty without needing an app.
Do you really need an app for loyalty program?
Short answer is YES but NOT really. Here is why.
Yes, an App is Beneficial:
For large, well-known brands and international chains, having a dedicated app for their loyalty program can be highly beneficial. These brands have the resources to develop and maintain an app, and they can leverage it to offer a highly personalized experience. Apps can provide push notifications, integrate with mobile wallets, and offer exclusive in-app promotions, enhancing customer engagement and retention. For these big brands, the cost and effort of maintaining an app are justified by the reach and impact they can achieve.
Not Really Necessary for SMEs:
For smaller restaurants and SMEs, developing a dedicated app can be costly and may not provide a good return on investment. Customers often see downloading apps as a hassle, especially for businesses with only a few outlets. This can become a barrier to participation, as customers may be reluctant to fill their phone storage with numerous apps for different restaurants.
Instead, using a web app for your loyalty program can be a more practical and budget-friendly solution. A web app like Pixalink can be accessed via WhatsApp or a simple QR code scan or a direct link, eliminating the need for downloads. This approach is user-friendly and convenient, allowing customers to easily check their points, redeem rewards, and view current promotions without taking up space on their phones. Many brands are now adopting web apps because they are easy to use, customizable to fit the restaurant’s branding, and can be implemented at a fraction of the cost of a dedicated mobile app. To save more cost, subscribe to a loyalty system like Pixalink Customer Loyalty Program will be super beneficial for your brand.
Why access loyalty program software using WhatsApp?
It is because Malaysian are so used to WhatsApp and stick with the App already, it will be best if your customer can just access the loyalty program using WhatsApp like what Pixalink provide to their clients.
Create Restaurant Loyalty Program (Step-by-Step Guide)
1. Define Your Objectives, Goals & Target to Hit (As Realistic As Possible)
Some common objectives, goals and target that you can reference
| Objective | Goal | Target |
| Increase Customer Retention | Improve customer retention by 20% within 6 months | Achieve a retention rate of 40% for customers who join the loyalty program |
| Boost Visit Frequency | Increase the average visit frequency of loyalty members by 30% | Encourage members to visit at least twice a month |
| Encourage Higher Spending | Increase the average transaction value by 15% | Achieve an average spend of RM50 per visit from loyalty members |
| Drive Customer Referrals | Generate 50 new customers through referrals each month | Each member to refer at least one new customer every three months |
| Collect Customer Data for Personalization | Gather detailed data on 70% of loyalty members within the first year | Collect preferences, visit frequency, and spending habits for personalized marketing |
| Increase Social Media Engagement | Boost social media interactions related to the loyalty program by 50% | Achieve 100 new followers and 200 engagement actions (likes, comments, shares) per month related to loyalty program promotions |
Example for Restaurant
| Objective | Goal | Target |
|---|---|---|
| Increase Customer Retention | Improve customer retention by 20% within 6 months | Achieve a retention rate of 50% for customers who join the loyalty program |
| Boost Visit Frequency | Increase the average visit frequency of loyalty members by 30% | Encourage members to visit at least twice a month |
| Encourage Higher Spending | Increase the average transaction value by 15% | Achieve an average spend of RM50 per visit from loyalty members |
Example for Cafe
| Objective | Goal | Target |
|---|---|---|
| Drive Customer Referrals | Generate 50 new customers through referrals each month | Each member to refer at least one new customer every three months |
| Enhance Customer Engagement | Increase member engagement with promotions and events by 25% | Achieve a 40% redemption rate on special offers sent to loyalty members |
| Increase Social Media Engagement | Boost social media interactions related to the loyalty program by 50% | Achieve 100 new followers and 200 engagement actions (likes, comments, shares) per month related to loyalty program promotions |
2. Design the Loyalty Program Structure
Points System: Decide how customers will earn points. For example:
- 1 point for every RM10 spent.
- 10 points for visiting on weekdays.
- Bonus points for trying new menu items.
Rewards: Define what rewards can be redeemed with points, such as:
- 50 points: Free dessert.
- 100 points: RM10 off the next meal.
- 200 points: Free main course.
- 500 points: Free meal for two.
3. Choose Your Platform That Suitable For Your
Web App: Use a web app for ease of access. Customers can sign up and manage their loyalty account through a QR code scan or a direct link.
Integration: Ensure the web app integrates smoothly with your existing POS system for seamless tracking of points and rewards.
4. Implement the Loyalty Program At Your Restaurant
Setup Member Profiles
- Data Collection: Collect basic information from customers to create their loyalty profiles. This typically includes their name, phone number, and email address.
- Privacy Compliance: Ensure that you comply with data protection regulations, such as the Personal Data Protection Act (PDPA) in Malaysia, by obtaining consent from customers before collecting their information.
- Database Management: Use a secure database to store customer information. Ensure that the database is regularly updated and backed up to prevent data loss.
Point Allocation System
- Automated Tracking: Set up a system that automatically adds points to customer accounts based on their transactions and activities. This can be done through integration with your POS system or by using a dedicated loyalty management platform.
- Point Calculation: Determine the point allocation criteria, such as the amount spent per visit or the frequency of visits, and configure the system to calculate points accordingly.
- Real-time Updates: Ensure that points are updated in real time so that customers can see their current balance whenever they check.
Reward Management
- Reward Catalogue: Create a catalogue of rewards that customers can redeem with their points. Include a variety of options to cater to different preferences, such as discounts, free items, or exclusive experiences.
- Redemption Process: Set up a system that allows customers to easily view and redeem their rewards. This can be done through a mobile app, website, or in-store terminal.
- Tracking Redemptions: Keep track of rewards that have been redeemed to ensure that customers receive their benefits promptly and accurately.
5. Promoting the Loyalty Program
Effective promotion of your loyalty program is essential for its success. Here are some strategies to ensure maximum visibility and participation:
In-Store Promotions
- Signage and Flyers: Place eye-catching posters, banners, and flyers around your restaurant to inform customers about the loyalty program. Highlight the benefits and how easy it is to join.
- Staff Training: Train your staff to promote the loyalty program to every customer. They should explain the benefits and guide them on how to sign up, emphasizing the simplicity and perks of the program.
- Table Tents and Menus: Include information about the loyalty program on table tents, menus, and receipts. This ensures that customers are reminded of the program throughout their visit.
Digital Marketing
- Social Media: Use your social media channels to promote the loyalty program. Post regularly about the benefits, how to join, and share testimonials from satisfied customers. Create engaging content, such as videos and infographics, to explain the program.
- Website: Feature the loyalty program prominently on your website’s homepage. Include a dedicated page with all the details, including how to sign up, earn points, and redeem rewards.
- Email Marketing: Send out email campaigns to your existing customer base, announcing the launch of the loyalty program. Follow up with periodic emails highlighting special promotions, new rewards, and success stories of loyal members.
Collaborations and Partnerships
- Local Influencers: Partner with local influencers and food bloggers to spread the word about your loyalty program. Their endorsement can significantly boost credibility and reach.
- Cross-Promotions: Collaborate with nearby businesses to cross-promote each other’s loyalty programs. For example, offer bonus points for customers who also visit a partnered cafe or retail store.
Events and Special Promotions
- Launch Event: Host an event to launch your loyalty program. Offer exclusive benefits to attendees who sign up during the event, such as extra points or a complimentary dish.
- Limited-Time Offers: Run special promotions to incentivize sign-ups, such as double points during the first month or extra rewards for referrals.
6. Monitoring and Optimizing the Loyalty Program
To ensure your loyalty program remains effective and continues to meet customer needs, regular monitoring and optimization are crucial. Here’s how to approach this:
Track Key Metrics
- Sign-Up Rates: Monitor how many customers are joining the loyalty program each month. A steady increase indicates healthy interest, while a plateau might suggest the need for additional promotional efforts.
- Engagement Levels: Measure how often members are earning and redeeming points. High engagement suggests the rewards are appealing, while low engagement might mean you need to reassess the rewards offered.
- Customer Retention: Track retention rates among loyalty program members versus non-members. Ideally, members should show higher retention rates, indicating the program’s effectiveness.
Collect Feedback
- Surveys: Regularly send out surveys to loyalty program members to gather feedback on their experiences. Ask about the ease of use, the attractiveness of rewards, and any suggestions for improvement.
- Direct Feedback: Encourage customers to provide feedback directly to staff or through digital channels. Implement a system where customers can easily share their thoughts and suggestions.
Analyze Data
- Spending Patterns: Analyze the spending patterns of loyalty program members. Identify any trends, such as preferred times for visits or popular menu items, and use this data to tailor promotions and rewards.
- Redemption Rates: Evaluate which rewards are most and least popular. Adjust the reward offerings based on this analysis to ensure they remain appealing and relevant.
Continuous Improvement
- Update Rewards: Periodically refresh the reward offerings to keep the program exciting. Introduce seasonal rewards, limited-time offers, and new experiences to maintain interest.
- Enhance User Experience: Based on feedback, continuously improve the user experience of the loyalty program. This could involve simplifying the sign-up process, making the points system more transparent, or improving the integration with your POS system.=
A/B Testing
- Promotions and Offers: Test different types of promotions and offers to see which ones drive the most engagement. For example, compare the effectiveness of a discount versus a free item as a reward.
- Communication Channels: Experiment with different communication channels and messages to determine which methods are most effective in reaching and engaging your loyalty program members.
