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Loyalty and retention

A loyalty programme for restaurants: cashback, points or discounts

Stamp cards aren't enough any more. Compare cashback, points, tiers and discounts, and learn to build a simple programme that brings customers back.

By the GetFoodies team · 3 min read

Winning a new customer costs money: ads, commissions, first-order discounts. Getting that same customer back a second, third and tenth time costs a fraction. It is the cheapest way to grow, and the one most restaurants ignore.

First, what is at stake

Before points and discounts there is one number that changes everything: customer lifetime value, how much a customer spends with you over the whole relationship. A customer who spends €15, three times a month for three years, is worth over €1,600. Every time they leave unhappy or simply forget you, that value is at risk.

The rule before anything else

A good programme can be explained in one sentence. If customers have to think to understand what they get, they won't join.

The types of reward

Cashback: money they already have

A share of each purchase returns to the customer as a balance for their next order. It is the easiest to understand and very motivating: "I already have €5 to spend here". Set the percentage carefully so it doesn't eat too much margin.

Points: collect and redeem

Points for every euro, redeemed for dishes or discounts. It creates the "I'm almost there" effect. Keep redemption simple.

Tiers: the more they spend, the better it gets

Customers move up a level and unlock benefits. It builds status and pushes the order value up, but only works with real benefits at each tier.

Discounts: the classic

Immediate and easy to communicate, great for a first order on your own channel. Used alone and all the time, it trains customers to wait for the price.

What to choose

You don't have to pick just one. An effective mix: a small discount on the first direct order, cashback or points to build the habit of returning, and tiers later if you want to reward your best customers. What matters is a clear programme, tied to your channel, with data telling you who is loyal.

How to build it, step by step

  1. Pick one reward that can be explained in a sentence.
  2. Keep the data from every purchase. Without knowing who is loyal there is no loyalty.
  3. Reach out to people who drift away: a friendly reminder and a small incentive. Many customers need more than one nudge to return.
  4. Close the loop: ask for a Google review and encourage recommendations.

Build on data you control

A marketplace's data and programmes belong to the marketplace. To reward your own customers the programme has to sit on your own channel.

How GetFoodies does it

Cashback and points are part of your ordering website and app: customers earn on every direct order and can see their balance, and the cashback percentage is yours to adjust in the dashboard. Each purchase is linked to the customer, with the data on your side.

Where to start

You need three things: a clear reward, a way to know who is loyal and a reminder for people who go quiet. The rest is tuned with data.

Your own ordering channel, with no GetFoodies commission

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