Want to make your quick-service restaurant (QSR) the top choice for your target audience? Simply providing tasty foods at good prices won’t cut it—at least, not anymore.
There are hundreds of restaurants competing for the same audience, some likely offering better prices than yours. There are some great marketing ideas for QSRs that can bring in new customers, but you also need to secure repeat business from the customers you already have.
And that’s where QSR loyalty programs come in.
Loyalty programs attract customers because they increase perceived value. Whether that value is free items, discounts, or access to exclusive dining experiences, one thing’s for sure: customers stay loyal to restaurants that run these programs.
Note: The brands and companies mentioned in this article were found during our online research.
What is a QSR loyalty program?
A QSR loyalty program is a marketing strategy that uses incentives like discounts and free food to improve customer retention. It’s among the most effective tools to keep customers coming back. After all, the more a customer buys, the higher or more valuable their incentives are—and everyone enjoys a good deal.
Contrary to common belief, customer loyalty programs aren’t new—they’ve just evolved drastically over the years to incorporate some novel ideas.
Loyalty programs actually date as far back as 1793, when an American merchant began giving repeat customers copper coins to redeem in his store. In the 19th and 20th centuries, merchants moved from issuing copper coins to stamps, which customers could redeem for products and services.
Fast forward to today, loyalty programs now use technology to make it easier for businesses to track customers and offer rewards. Not only can customers join and participate in these programs from their phones, but they can also access more personalized and engaging experiences.
In the QSR industry, this could be anything from offering customers their favorite meals for free to providing free food delivery or exclusive dining experiences.
Further, QSRs are introducing gamification to make their loyalty programs more exciting. Take Starbucks, for example. Customers earn stars for their purchases and unlock new levels depending on the number of stars they accumulate. The higher their level, the greater their rewards. Quite innovative, right?
Key components of QSR loyalty programs
While implementing a loyalty program may seem straightforward—simply issue points for repeat purchases and offer rewards—it isn’t quite that easy. You need to understand the must-haves of successful QSR loyalty programs before creating your own to boost your likelihood of success.
Here are some key components to keep in mind.
Rewards programs
Assume you have two restaurants to choose from, both offering the same foods at the same prices. But one allows you to select a free menu item after your tenth purchase.
Which one will you go for? The one with a reward after the tenth purchase, right? The opportunity to earn free food is an added value for any customer.
Rewards are the backbone of customer loyalty programs. The better they are, the likelier customers are to choose you over your competition. You can implement various types of rewards, including:
- Points-based systems: You give customers points for every purchase, which they can collect and redeem later on for free items or discounts.
- Tiered rewards: You divide QSR customers into different categories based on spending and give better rewards to high tiers. This can encourage customers to spend more to climb through the ranks.
- On-the-spot discounts: To encourage higher spending, you give customers instant discounts at the time of purchase. For example, you could run a “Buy two burgers, get one free” campaign to encourage customers to buy more than one.
- Cash-back rewards: You offer a percentage of the purchase price back as credit for customers to use on future orders.
Tailor your loyalty program to suit customer preferences and purchasing behavior to increase engagement and loyalty. For example, if you have a highly popular menu item, you could offer double points when a customer purchases it.
QSRs like Starbucks and McDonald’s have seen tremendous success from their rewards programs. Starbucks has a retention rate of 44%, 19% higher than the industry average, while McDonald’s’ loyalty program has 150 million 90-day active users.
Digital integrations
Integrating loyalty programs with mobile apps and digital platforms can elevate the customer experience and increase adoption. Combining the two makes it easy for customers to collect and redeem rewards, and it also streamlines points and order tracking for your restaurant.
Further, the data collected can help you provide more personalized offers based on customers’ purchasing behavior and give you a better look at the impact on sales. Integrating loyalty programs with technology also limits the risk of errors in points tracking.
For successful integration, you need innovative digital features like mobile ordering or contactless payments. This way, your app or digital platform can automatically reward points with every purchase.
Personalization strategies
Modern customers don’t just want high-quality experiences and products—they also want them to be personalized. To improve customer satisfaction and retention, you’ll need to customize your rewards to fit their needs and preferences.
Collect customer data, like birthdays and frequent purchases, to personalize rewards and communication.
For example, you can provide birthday discounts for your customers to encourage purchases on their special day and make them feel valued. Using past purchase information, you can provide more targeted rewards, like a half-priced burger for customers who frequently order burgers.
Customer feedback integrations
It may take some trial and error to get your customer loyalty program running just right, especially if you’re new to this strategy. But collecting customer feedback can help you understand what they’d value from your rewards program.
Do they want free food or free delivery? Would they prefer a points-based system or on-the-spot discounts? These are some of the questions you should ask to refine and improve your program.
Leverage digital channels like social media, distribute customer satisfaction surveys, and ask customers who visit your restaurant in person what they’d prefer. Alternatively, you can try out different programs and assess how customers engage with them to determine what resonates the most with your audience.
Customer engagement tactics
Unfortunately, simply offering a loyalty program may not be enough for your customers. After all, every other QSR is offering one.
So you need to differentiate yourself from the rest. Make your program exciting and regularly engage with your audience to keep your restaurant at the top of their minds.
Introduce gamification features like leaderboards, offer access to exclusive events and sneak peeks at new menu items, and communicate regularly via email, social media, and push notifications. The more you engage, the more your retention rates will improve.
Why loyalty programs make sense for QSRs
As you’ve likely already figured out, creating a successful QSR loyalty program is a lot of work. Is it worth it? Most definitely. Here’s what it can do for your restaurant:
Boost customer retention rates
Loyalty programs give customers a reason to keep coming back to your restaurant. They can lower your churn rate, increase customer retention, and transform one-time buyers into repeat customers. This isn’t a benefit you want to miss, as retaining existing customers is cheaper than attracting new ones.
Enhance customer lifetime value
Loyalty programs can increase the lifetime value of customers by encouraging more frequent visits and higher spending. Skeptical? A survey conducted by HungerRush revealed that 55% of American consumers visit a restaurant at least twice a month to earn loyalty rewards.
So rest assured that, while you’ll incur costs introducing and maintaining a loyalty program, it’ll more than pay for itself in the long run.
Differentiate from competitors
With thousands of businesses in the quick-service restaurant industry, you have to continually find creative ways to retain customers and attract new ones. A unique loyalty program is a great opportunity to stand out from the competition.
You can introduce gamification features to keep things exciting or offer out-of-the-box rewards like free products from partner brands. You can even use them for QSR location-based engagement by planning exclusive events for loyal customers in specific areas. The possibilities are endless!
Examples of successful QSR loyalty programs
Right now, you’re probably thinking, “Loyalty programs look good on paper, but can they really work in the QSR industry?”.
The answer is a resounding yes! Let’s look at some QSRs that run successful loyalty programs to show you how it works in real life.
Starbucks
Coffee giant Starbucks runs one of the most successful loyalty programs with millions of active users.
The Starbucks Rewards Program gives customers one or two stars (depending on payment method) for every dollar spent, with the option to unlock prizes with as few as 25 stars. Customers can also accumulate their stars to reach Golden Status, which unlocks more exclusive rewards.
Prizes range from free drink customizations to Starbucks merchandise like tumblers and coffee cups. Beyond gifts, loyal customers can order ahead and pick up curbside, in-store, or the drive-thru. They also enjoy free birthday treats and earn bonus points by participating in fun games.
Further, customers who link their Starbucks Rewards account to their Delta SkyMiles and Bank of America cards can earn free miles and cashback from their Starbucks purchases.
The Starbucks Rewards Program stands out because of its partnerships with other brands, which increases the value and encourages customers to spend even more.
Chipotle
International fast-casual restaurant Chipotle has roughly 35 million members in its loyalty program, which rewards customers with 10 points for every dollar spent in the restaurant or any of its digital platforms. Customers can redeem points for free food and merchandise or contributions to charitable causes.
Chipotle’s program is unique because it does more than just appeal to customers’ desire for rewards. It also appeals to their sense of social responsibility by allowing them to support charitable causes by simply buying meals from the restaurant chain.
McDonald’s
The MyMcDonald’s Rewards Program is one of the most significant contributors to the fast food chain’s success, as it keeps customers coming back for more.
As a member, you earn 100 points for every dollar spent, which you can accumulate and redeem for a wide range of free menu items. Customers can earn 1,500 bonus points for linking their debit or credit cards to the McDonald’s mobile app and making a purchase.
The program is divided into four tiers based on points accumulated, with each tier unlocking better rewards than the one below. This gamification feature is one of the reasons why people keep the orders coming.
Chick-fil-A
Chick-fil-A has mastered the art of tiered rewards in its loyalty program, unlocking better rewards for customers as they increase their loyalty status. The fast food restaurant has four tiers:
- Chick-fil-A One: This is the starting tier, which awards 10 points for every dollar spent.
- Silver: Customers enter this tier when they earn 1,000 points in a year. It rewards members 11 points for every dollar spent and allows them to use their points to gift to friends and family.
- Red: This tier unlocks after earning 4,000 points in a year. Here, customers earn 12 points for every dollar and gain access to a free Chick-fil-A backstage tour.
- Signature: Customers reach this tier when they earn 10,000 points in a year. Rewards max out at 13 points for every dollar spent, and customers at this level receive exclusive offers.
Dunkin’
With thousands of restaurants and millions of loyal customers, it’s no surprise that Dunkin’ runs one of the most successful rewards programs. Dunkin’ Rewards gives you ten points for every dollar spent, with the option to get free food at only 150 points.
Further, you can unlock Boosted Status by visiting the restaurant 12 times in a month. This status allows you to earn 12 points for every dollar spent for three months.
If you add your birthday to your account, you can also earn 3X loyalty points on the day before, of, and after your birthday. This personalization aspect is one of the main reasons for the program’s success.
Use Bitly to track the success of your QSR loyalty program
Consumers love loyalty programs, and they can be game-changers for QSRs, boosting customer retention, enhancing customer lifetime value (LTV), and setting your restaurant apart from the competition. But to set up a successful program with a strong ROI, make sure it’s personalized for your unique customer base and invites engagement and ongoing customer feedback.
Ready to launch your own QSR loyalty program? Bitly can give you in-depth insights to refine your strategy and boost performance.
You can start by using Bitly QR Codes or short links in your marketing materials and customer loyalty campaigns. These solutions make it easy for customers to sign up and also provide you with detailed performance analytics.
Through the Bitly Connections Platform, you can see the number of link clicks or QR Code scans your loyalty program receives, as well as their locations and even devices used. This data can help you enhance your program and tailor it to the needs and preferences of your customers.
Sign up for Bitly today for tracking capabilities and performance insights to help you run a successful QSR loyalty program!