Do You Run Promotions or Loyalty Programs?
Discounts are easy. Loyalty is harder — and far more valuable.
Many restaurants run promotions when business slows down, but few use them strategically to drive repeat visits and long-term revenue.
The difference is simple. Promotions react to problems. Loyalty programs prevent them.
Let’s break it down step by step.
Step 1: Stop Treating Promotions as Emergency Tools
If promotions only appear when sales drop, guests learn to wait for discounts.
That trains price sensitivity, not loyalty.
Instead, promotions should have a clear purpose:
Fill low-demand days or time slots.
Introduce new menu items.
Reward specific guest behaviors.
👉 Pro tip: Every promotion should answer one question. What behavior are we trying to change?
Step 2: Segment Guests Before Offering Incentives
Not all guests should receive the same offers.
Blanket discounts waste margin and reduce perceived value.
Segment guests by:
Visit frequency.
Average spend.
Last visit date.
👉 Pro tip: A “welcome back” offer after 60–90 days is more powerful than a generic discount sent to everyone.
Step 3: Design Simple Loyalty Mechanics
Loyalty programs fail when they are complicated.
Guests should understand the benefit in five seconds.
Effective examples:
Buy 5 meals, get 1 free.
Points converted into free items, not discounts.
VIP access to special menus or events.
👉 Pro tip: Experiential rewards build stronger loyalty than price cuts. Priority booking beats 10 percent off.
Step 4: Automate Promotions and Loyalty Touchpoints
Manual tracking doesn’t scale. Automation makes loyalty consistent.
Use tools that:
Trigger rewards after specific visit counts.
Send reminders when guests are close to a reward.
Reactivate inactive guests automatically.
👉 Pro tip: Automation removes awkward conversations and ensures no loyal guest is forgotten.
Step 5: Measure What Actually Works
Not all promotions are good promotions.
Track performance beyond redemptions.
Key metrics to monitor:
Repeat visit rate.
Average spend of loyalty members.
Time between visits before and after promotions.
👉 Pro tip: If a promotion increases visits but lowers overall spend, it needs redesign — not repetition.
Final Thoughts
Promotions attract attention. Loyalty builds habit.
Restaurants that grow sustainably use incentives to reward behavior, not to chase volume.
🎯 Signature Mantra: Discounts create traffic. Loyalty creates revenue.
If your Transactions score in the VISITA™ Diagnostic was low, start small.
Launch one structured promotion with a clear goal and automate one follow-up message. That alone can change repeat behavior.
👉 Take the Restaurant Diagnostic below and see how your restaurant performs across all six VISITA™ pillars — from Visibility to Automation.
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