Loyalty programs encourage customers to spend more

Most restaurants now offer consumers the opportunity to be rewarded for their spending, according to data from PYMNTS’ new Restaurant Friction Index, created in collaboration with Paytronix.

The study, which is based on a survey of more than 500 quick-service restaurant (QSR) and full-service restaurant (FSR) managers, found that 57% of restaurants offer rewards programs. Yet many restaurant websites and apps fail to reward consumer loyalty, given that 77% of restaurants offer online ordering and 73% offer app ordering.

See more : New data shows digital loyalty programs are a key differentiator for top-performing restaurants

Meanwhile, consumers are looking for loyalty rewards above all other features. The study, which also drew on the results of a survey of a balanced panel of more than 2,100 American consumers, found that 43% of consumers would be more likely to shop at restaurants offering these rewards. , which is more than the same as any other feature. Loyalty programs are ranked ahead of online ordering and payment capability, drive-thru pickup, and curbside pickup, among other in-demand features and capabilities.

While many major retailers launched loyalty programs throughout 2020 and 2021, some restaurants are still in their infancy, and others are relaunching their loyalty programs to better meet rising consumer expectations. when it comes to personalized convenience. Fast-casual Mexican chain Qdoba, for example, announced on Thursday (February 17) Press release a new, more “light” version of its program.

“After listening carefully to what matters most to our fans, we’ve introduced a simplified, easier-to-understand program that rewards people with fast free food for eating what they already love,” Qdoba CEO Keith Guilbault said in the press release. “Our customers love that we have a program in place that allows them to get tasty rewards quickly, as we have already seen a 20% increase in weekly signups since the program launched.”

Loyalty programs can also be critical to restaurants’ ability to weather crises.

“Digital engagement mechanisms to stay close to customers are paramount,” said Paytronix CEO Andrew Robin in an interview with Karen Webster of PYMNTS. “So a solid loyalty CRM program, online ordering, those are the two pillars of a good strategy. And we see it every time there’s a downturn.

Read more: Restaurants rely on loyal customers to navigate Omicron, inflation impact



On: Forty-two percent of US consumers are more likely to open accounts with financial institutions that facilitate automatic sharing of their bank details upon sign-up. The PYMNTS study Account opening and loan management in the digital environmentsurveyed 2,300 consumers to explore how FIs can leverage open banking to engage customers and create a better account opening experience.