How to Increase Customer Loyalty (12+ Strategies)

What is customer loyalty?

Customer loyalty refers to the consistent preference and repeat business a customer gives to a particular company over its competitors. It’s more than just making a purchase; it’s about building a bond over time based on trust, satisfaction, and mutual value.

Think of it as a relationship where both parties benefit, customers get great products and services, and businesses enjoy repeat business. In today’s competitive market, customer loyalty is a crucial pillar for success, especially in high-stakes industries like the restaurant business.

How to increase customer loyalty

1. Highlight what makes you different

No other restaurant is quite like yours, so show customers why that’s a good thing. If you’re selling burgers, make them crave your burgers. This could mean anything from your standout dish to a one-of-a-kind interior that’s Instagram-worthy.

Lean into your unique strengths, especially the ones competitors don’t have.

If nothing comes to mind right away, start thinking of ways to stand out:

• Create a signature brand. Whether you’re a single location or a chain, a strong brand sticks with people. Coffee shops might get creative with cup designs by partnering with an artist to create something that feels fresh and uniquely theirs.

• Promote your best seller. What’s your most popular dish, and why do people love it? Maybe it’s a secret sauce or a twist on a classic. Brand that item as something that’s distinctly yours and highlight it on your menu and marketing.

2. Serve food with an unforgettable experience

When a song hits the right note, you replay it. When a meal is spot-on, you crave it again. People love to relive positive experiences, and with your great food, you’re already halfway there. Pair that with a memorable guest experience, and you’ll keep customers coming back. Customer engagement plays an important role in building customer loyalty by enhancing interactions and creating personalized experiences.

Think about what makes dining at your place special. Maybe you’re an Italian spot where guests feel like part of the family, or a frozen yogurt shop where choosing toppings is half the fun. Whatever it is, make it memorable so they can’t wait to return. Consider looking into eatertainment ideas for your venue. 

3. Put in extra effort

Building strong connections with your customers is vital to improve customer loyalty. Remember, your restaurant is part of their story, and they should feel like valued characters in it.

Start by focusing on exceptional customer service. While remembering every regular’s name is a nice touch, the real goal is to cultivate an environment where everyone feels welcomed and appreciated. Encourage your staff to convey that each customer’s experience is important, no matter how busy the restaurant may be. When diners feel recognized and valued, they’re much more likely to return, making them part of your restaurant’s ongoing narrative.

How to do this

By using a reservation system like, Eat App you will be able to automatically create guest profiles on the go. These profiles will be able to store valuable information, including their name, surname, number of visits, any personal preferences, birthdays, and anniversaries.

Servers are also able to put together guest notes that will be more specific. For example, “Jimmy has been to our restaurant more than three times. He usually brings along a guest. They both almost always order red wine, and Jimmy prefers steak over fish.”

This information can then be used to make Jimmy’s experience more memorable. On special occasions you can offer him a glass of red wine, on the house. You can also send Jimmy specials on steak and red wine evenings. The options are endless.

A robust guest profile will also help your staff to know who are loyal customers, and how to greet them at the door. A guest like Jimmy for example will really appreciate it if you greet him by his name. 

4. Gather guest feedback

Gathering and responding to customer feedback is key to improving your restaurant’s service and building loyalty. Use multiple methods like automated guest surveys, online reviews, and casual staff conversations to collect insights.

Customer loyalty programs can also play a significant role in gathering feedback and improving service. These programs encourage repeat business and reward loyal customers, often including criteria for rewards and various types such as tiered systems and points programs.

Analyzing this data allows you to identify patterns and make necessary adjustments, turning feedback into a valuable tool for growth. Addressing both compliments and concerns promptly shows guests that you care about their experience while handling negative feedback with professionalism can transform unhappy customers into loyal advocates.

Automated guest surveys, like those offered by Eat App, simplify the feedback process by sending surveys immediately after a guest’s visit, giving you real-time insights. This makes it easier to respond quickly and take meaningful action. By actively listening to your customers and using their feedback to improve, you can create a better dining experience and strengthen customer relationships over time.

The proof is in the numbers

Studies from industry giants like Gartner indicate that acquiring a new customer is significantly more expensive than retaining an existing one. This is why building customer loyalty and retaining existing customers is mission-critical for your business.

Not only does it save on acquisition costs, but it also enhances customer satisfaction and experience. Loyal customers are more likely to provide valuable feedback, recommend your restaurant to others, and contribute to a stable revenue stream. In essence, focusing on customer retention and satisfaction can lead to long-term growth and success.

Actual statistics show how guest feedback can improve the overall guest experience in restaurants. For example:

• According to a survey by Deloitte, 57% of consumers are more likely to return to a restaurant that actively responds to feedback, showing the power of engagement in building customer loyalty.

• A study by the Harvard Business Review found that companies who respond to reviews experience a 5-9% increase in revenue, which reflects how addressing feedback can positively impact business performance.

• The ReviewTrackers 2023 report highlights that 94% of diners are influenced by online reviews, and restaurants that engage with feedback can improve their reputation and guest satisfaction over time.

These stats show that when restaurants listen to and act on guest feedback, it improves both the guest experience and the bottom line.

5. Celebrate your loyal customers

Build customer loyalty by making your loyal customers feel special with thoughtful, unexpected gestures. Offering complimentary appetizers, desserts on their birthday, or even surprising them with a dish based on their favorite flavors can leave a lasting impression. These small touches create a deeper connection with your guests and help turn a good dining experience into something memorable.

Great food isn’t enough to build loyalty. To keep customers coming back, they need to feel appreciated and valued. It’s those extra steps that show them their loyalty matters, building a relationship that goes beyond the plate.

6. Create a seamless dining experience

Eat App can help restaurants build a loyal customer base with tools designed to improve the dining experience. Think of features like online reservations, table management, and guest profiles; these aren’t just conveniences; they’re opportunities for restaurants to connect with diners in a meaningful way. The app tracks customer preferences and visits history, making it simple to create personalized promotions and personalized outreach.

By providing a smooth booking process along with valuable insights, Eat App helps restaurants deliver positive experiences that keep customers coming back for more.

We’ve just rolled out a new feature that lets restaurants share special offers directly with their loyal customers, making it even easier to reward repeat visits. Restaurant owners can now see how many times someone has booked and when they last visited, allowing them to entice those returning guests with targeted promotions based on their habits.

• As our product manager puts it, “With our guest profile feature, restaurants can remember a customer’s favorite dish or dietary needs. When a diner receives a personalized message about a new menu item they love or an exclusive offer just for them, it builds a stronger connection and encourages them to come back for that special experience,” says Product Manager, Hepsi.

7. Build a community

Teaming up with local businesses can help you reach more customers while giving your guests added perks. Consider working with nearby shops or attractions to offer combined discounts or promotions, which encourages guests to explore the area. You can also partner with delivery services to make your food more accessible, catering to customers who value convenience.

Strengthening ties with your local community helps both your restaurant and neighboring businesses thrive. These collaborations not only boost your visibility but also create a sense of connection that benefits your loyal customers. Additionally, repeat customers typically spend more on brands they are loyal to, which enhances the brand's share-of-wallet compared to competitors. This loyalty not only increases revenue but also aids in effective business planning and cash flow predictability, allowing for better resource allocation for growth.

8. Uphold restaurant standards

This is why it’s a good idea to gather guest feedback. You’re not always the one dining and eating the food. And if you’re loyal customers aren’t happy with the quality that they’re used to, you need to know before they end up sharing a bad experience on social media.

Maintain an epic restaurant experience by also roping in your staff. Ensure to train them correctly, so they’re able to identify a plate that is not up to standards. It’s also recommended that restaurant owners take a regular look at their menus. Are there any items that people often rave about, or is there a dish that guests complain about? By using a reservation system, like Eat App operators are able to monitor personal preferences, as well as regular items ordered by loyal customers.

9. Make a meaningful connection

Sharing your story with customers is a great way to connect on a personal level. Whether you're a family-owned restaurant, passionate about cooking since childhood, or serving dishes passed down from generations, let your guests know. It’s more than just food; it’s your journey, and that can really resonate.

When customers are deciding where to eat, a heartfelt story can set you apart. It makes your restaurant memorable, giving people another reason to choose you over the rest. Plus, it adds a human touch to the experience, making each visit feel special.

10. Personalize Your Customer Experience

Personalizing customer experiences is crucial for building customer loyalty. When customers feel valued and appreciated, they are more likely to return and recommend your restaurant to others. Personalization involves tailoring experiences to individual customers’ needs and preferences, using data and analytics to inform product iterations and marketing strategies.

To personalize customer experiences, consider these techniques:

• Gather Actionable Data: Use AI-powered tools to collect insights on customer preferences and behaviors. This data can help you understand what your customers love and how to serve them better.

• Inform Product Iterations: Use customer feedback to refine your menu and services. This ensures that your offerings resonate deeply with your customers.

• Offer Personalized Recommendations: Suggest dishes or drinks based on past orders. This small touch can make customers feel special and understood.

• Create Personalized Content and Offers: Send tailored promotions and messages that cater to individual preferences. For example, if a customer loves your seafood dishes, let them know about a new seafood special.

By personalizing customer experiences, you can increase customer satisfaction, loyalty, and retention, ultimately driving revenue and growth. When customers feel valued, they are more likely to become repeat customers, contributing to a thriving business.

11. Reward your loyal customers

Creating a customer loyalty program is a smart move to encourage repeat visits and boost engagement. Turning first-time diners into regulars can significantly impact your bottom line, Antavo’s 2023 Global Customer Loyalty Report shows that loyalty programs generate nearly 4.9 times more revenue than their cost.

Think about what kind of loyalty program would fit your restaurant best. You might implement a points system that integrates with your point-of-sale system or send exclusive discounts to your email subscribers. No matter the approach, a well-designed loyalty program can keep your customers coming back for more.

12. Measure and optimize

Customer Lifetime Value (CLTV) is a crucial metric for measuring the value of a customer to your business over their lifetime. It takes into account the customer’s purchase history, frequency, and retention rate to estimate the total value they will bring to your restaurant.

To track CLTV, consider these metrics:

• Average Order Value (AOV): The average amount spent by a customer per visit.

• Purchase Frequency: How often a customer returns to your restaurant.

• Customer Retention Rate: The percentage of customers who continue to dine with you over a specific period.

• Customer Acquisition Cost (CAC): The cost associated with acquiring a new customer.

By tracking CLTV, you can identify your most valuable customers and tailor your marketing strategies to retain and engage them. This can help you:

• Increase customer loyalty and retention

• Improve customer satisfaction and experience

• Drive revenue and growth

• Optimize marketing strategies and budget allocation

Measuring and optimizing CLTV allows you to make data-driven decisions that enhance customer loyalty and drive long-term growth. By focusing on the lifetime value of your customers, you can ensure that your efforts are aligned with building a loyal and satisfied customer base.

FAQs

Answers to all your customer loyalty questions

How can restaurants increase customer loyalty?

Go beyond just serving great food. Create memorable experiences, personalize your service, implement a simple loyalty program, and show genuine appreciation for your customers. Building a strong sense of community will not only drive repeat business but also boost your revenue.

Is it worth implementing loyalty programs in restaurants?

Absolutely! A well-designed loyalty program rewards your regulars, encourages repeat visits, and provides valuable data to help strengthen customer loyalty.

How can restaurants create a memorable dining experience?

Consider hosting theme nights, live music events, unique decor, and adding personalized touches like remembering guest preferences. These efforts exceed expectations and create lasting memories for your diners.

What’s the best way to gather feedback on customer experiences?

Offer immediate feedback options, like HappyOrNot Smileys. This real-time feedback allows you to address issues right away and make long-term improvements. Also, engage actively with your patrons! Open communication helps you understand their needs and tailor your efforts to enhance loyalty.

How can restaurants build brand loyalty among potential customers?

Engage actively on social media, highlight positive reviews, and offer special deals for first-time guests. Show potential diners what makes your restaurant unique, and they'll soon become loyal members of your community.