Encouraging Customer Satisfaction through Subscription Loyalty Programs

August 22, 2023

In the current business climate, subscription-based models have proven to be the backbone of successful customer engagement strategies. Using loyalty programs, restaurant owners can enhance customer loyalty, boost engagement, and drive continuous revenue growth.

A business's survival depends on the loyalty of its customers. They are the ones who generate continuous income, spread the good word to those around them, and establish a foundation of business resilience when times get tough. To retain these loyal patrons, business must constantly reinvent themselves and find new ways to engage customers and keep them coming back for more.

A Deeper Dive into Subscription-Based Programs in the Food Industry

By implementing an ongoing payment system, restaurant subscription models enable patrons to reap the benefits of exclusive offers and menu items. This translates into limited-time offers, free delivery services, special discounts, etc. Moreover, the feeling of getting early or special access fosters a deeper connection with the business and makes subscribers feel as if they are getting a better value for their money. 

By leveraging monetary value and the bonus of convenience, restaurants can promote stronger relationships with specific customer demographics. This results in an environment where patrons feel recognized and appreciated. Beyond positive consumer sentiment, subscription models also result in acquiring impactful data, which can then be used to create a personalized dining experience that caters to individual preferences. What customers truly value, are the personal touches, like tailored offers on the menu items they purchase the most. On average, customers who subscribe spend over 2.5x the amount they thought they would. In fact, 86 percent of consumers are likely to spend more when offered personalized promotions. In addition, it has been proven that consumers would increase spending by over 35% if a specific restaurant had an a loyalty program they wanted to join. Along with that, 73% of customers would recommend a restaurant with an appealing program to friends and family.  

How are restaurants  leveraging subscription models these days?

  1. Unlimited Menu-Items: These subscriptions generally offer a fixed monthly fee in exchange for unlimited access to a particular type of food or beverage. While coffee or soda subscriptions are common, similar models can apply to other menu items as well. Panera’s unlimited sip club is the perfect example of a successful unlimited program. 
  2. At-home Meal Kits: These programs consist of pre-packaged boxes of entire meals/ingredients that are delivered to straight to the subscribers homes and contain all the necessary components to prepare a specific meal or dish. Popular delivery options include, Hello Fresh, Blue Apron, Purple Carrot, etc. 
  3. Delivery Discounts: Amazon’s subscribe & save enables consumers to set up regularly scheduled deliveries and get save big bucks in return.
  4. Dining Offers: With Appfront, restaurants can easily implement subscription-based models and build recurring revenue purchases in the process. Our programs are completely customizable - from free menu items to delivery perks, the possibilities are endless. 

In order to effectively incorporate a subscription-based model within the restaurant industry, it is essential to:

  • Launch a comprehensive marketing plan tailored to a specific demographic: Promote program benefits, offers, and personalized experiences while targeting specific customers segments for cost savings and exclusives.
  • Ensure you have the right tech stack to ensure success: Can you craft customized subscription programs or run several all at once? Are your guests able to subscribe quickly and easily? Are you able to offer both monthly and annual subscription options?  Having the ability to run different subscription programs on different segments will make all the difference. Get in touch with a member of our support team for a free consultation.
  • Ask yourself, would I be excited about signing up for this type of rewards program?: Developing a pricing model that is both profitable and rewarding to customers, while also navigating the long-term success factors will prove influential. 

With AppFront, you can launch your subscription program quickly and easily. The best part? You’ll never be limited to running a single program at a time. Run as many as you want; they’re completely customizable to your needs. Discover Appfront Subscription programs today.

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