Did you know the cost of acquiring new customers can cost you five times more than satisfying and retaining your current ones? However, it takes a great deal of effort to convince satisfied customers to switch from their go-to restaurant. Happy customer leads to customer loyalty, which results from consistently positive emotional experience, physical attribute-based satisfaction, and perceived value of an experience, which includes the product or services. I would like to share seven tips that will help you build and retain customer loyalty.

TIP #1 Organize and make accessible a database of information on individual customer needs, preferences, contacts, purchase frequency, and satisfaction. A great tool that is overlooked is our point of sale (POS) systems. Many of these systems can keep track of your customers, phone numbers, emails, purchases, notes, and loyalty programs. Make sure you are utilizing your available tools to their maximum.   

TIP #2 Assess the potential of loyalty and marketing programs. A loyalty program designed to reward customers who buy frequently and in substantial amounts. Also, it produces a psychological boost and a feeling of being special and elite that customers value. You can provide your customers with perks and updates on new events or dishes. Consequently, the program will help build long-term loyalty with high customer lifetime value customers, creating cross-selling opportunities in the process.                          

TIP #3 Conduct staff meetings to plan and manage the customer satisfaction and retention process. When was the last time your staff had a meeting with you, instead of you with them? Did you listen to what the customers are telling them? Did you listen to the needs of your staff to provide excellent service? As restauranteurs, we need to hear, plan, and relate to our staff what is required to obtain customer loyalty.     

TIP #4 Integrate the “Voice of the Customer” to capture their stated and unstated needs or requirements in all business decisions. When addressing our business, there is a tendency to think about what the business needs. However, we need to change our mindset to what our customers need. Remember, they are the ones that keep our business alive.

TIP #5 Run award programs recognizing outstanding employees. Your servers are your best salespeople and the face of your restaurant. They are the ones that connect with your customers and make the difference. Furthermore, they usually advertise for you in their free time to their family and friends. Get to know your staff and provide positive reinforcement. Your team will feel personally committed to you and your restaurant when they feel valued.

In conclusion, a thorough review and application of these five tips will provide your customers a positive emotional and valuable experience. We need to keep in mind that we are not in the food business. We are in the hospitality business! When consistent quality food, personalized friendly service, and great ambiance meet, it creates a memorable experience. Now let’s turn our customers into loyal patrons!