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Loyalty Programs for Indian Restaurants: How to Create One?

Loyalty Programs for Indian Restaurants
user Profile  | Last updated on:17 Feb 2025

A well-crafted loyalty program can turn your regular diners into your restaurant’s biggest fans who can’t wait to come back. In fact, 59% of people in paid loyalty programs are more likely to stick with that brand instead of jumping ship. 

Moreover, 90% of brands running loyalty programs see a positive return on investment, with an average ROI of 4.8 times what they put in. Plus, 64% of loyalty members are so eager to redeem those points that they end up spending more to get them. 

So, if you’re ready to turn your diners into enthusiastic regulars, let’s explore how to create a loyalty program.

Loyalty Program

1. Know Your Crowd

Indian diners come with their unique quirks and tastes, and a one-size-fits-all approach won’t cut it. Think about what makes your patrons tick. They could be families enjoying a weekend meal to young professionals grabbing lunch. Here’s how you can know your audience to meet their needs and preferences:

  • Ask your regulars what they’d like in a loyalty program. This can be done through a simple survey or by chatting with them.
  • Look at which dishes are the most popular and what times of day are busiest. This can help you craft rewards that resonate with your customers.

2. Choose the Right Type of Program

There are several types of loyalty programs you can choose from. But note that 45% of people don’t like how long it takes to get rewards from loyalty programs, and 31% think it’s too hard to earn them. So, make sure they get rewards quickly and easily. 

Here’s a quick rundown:

A. Points-Based System

This is one of the most common types. Customers earn points for every rupee spent, which can be redeemed for discounts or free items. For example, for every ₹100 spent, they earn 10 points, and 100 points might get them a free appetizer.

Points-Based System

B. Tiered Rewards

This system has multiple levels. Customers get more perks as they reach higher tiers based on their spending. For example, “Gold” members might get a free dessert with every meal, while “Platinum” members might get a free meal every month. It adds a bit of excitement and encourages customers to spend more to reach the next tier.

Tiered Rewards

C. Punch Cards

The classic punch card system is a simple, old-school approach. After a certain number of visits or purchases, customers get a reward. For example, buy ten dosas, get one free. It’s tangible and satisfying. Plus, your customers might get some nostalgic vibe about getting a stamp or punch.

D. Referral Programs

Encourage your existing customers to bring their friends along. For every new customer they bring in, they get a reward. It’s a win-win—you get new customers, and your loyal patrons get rewarded for spreading the word.

3. Decide on Rewards

Now that you’ve picked your program type, it’s time to figure out the rewards. Make sure they’re appealing and valuable to your customers. Discounts and freebies are great, but they aren’t the only way to win customer loyalty. If you’re looking for creative ways to build loyalty without relying on offers or discounts, check out How to Build Customer Loyalty Programs for Your Restaurant Without Offers & Discounts? for some unique ideas.

  • Who doesn’t love a good discount? Offer a percentage off their next meal or a special discount on their favorite dish.
  • Everyone loves a freebie! You could offer a free appetizer, dessert, or even a whole meal after a certain number of visits or points.
  • Give your loyalty program members access to special promotions or limited-time offers that regular diners don’t get.
  • Treat your top-tier members to exclusive experiences like a cooking class with your chef or a special tasting menu.
Decide on Rewards

Here’s a table that outlines possible goals of a loyalty program and the corresponding perks and benefits:

Goal of Loyalty ProgramLoyalty Program Perks and Benefits
Increase Repeat VisitsEarn points for every visit, redeemable for discounts or free items like a complimentary chai or snack

Punch cards that offer a free meal or dessert after a set number of visits
Boost Average Check SizeEarn bonus points for spending over a certain amount (e.g., spend ₹500, get an additional 100 points)

Discounts or special offers for reaching spending thresholds (e.g., spend ₹1000, get ₹100 off)
Encourage Off-Peak DiningExtra points or discounts for dining during quieter times of the day (such as lunch or early dinner)

Special promotions or additional rewards for dining outside peak hours
Enhance Customer RetentionExclusive discounts or special offers for loyalty members (such as 10% off every visit)

Birthday discounts or free treats to celebrate customer anniversaries
Increase Customer EngagementInvitations to special events or exclusive tasting sessions

Opportunities to vote on new menu items or provide feedback for future offerings
Drive ReferralsReferral bonuses for both the existing customer and the new one (such as both get a discount on their next meal)

Special rewards for referring friends and family
Improve Brand LoyaltyPersonalized offers based on dining preferences (such as discounts on favorite dishes)

Recognition of top customers with exclusive benefits (such as a special loyalty tier with extra perks)
Promote New Menu ItemsPoints or discounts for trying new dishes (such as order a new item and get 20% off)

Free sample or special offer when ordering from the new menu
Enhance Customer Data CollectionIncentives for filling out feedback forms or participating in surveys (such as earn points for feedback)

Extra points for updating and completing customer profiles

4. Make it Easy to Join

Keep the sign-up process smooth. Whether you’re using a digital platform or a good old-fashioned sign-up sheet, make sure it’s easy and hassle-free. You don’t want your customers jumping through hoops just to join your program.

5. Promote Your Program

Once your loyalty program is ready to roll, promote it through your restaurant’s social media, website, and in-house signage. Here’s how to get the word out:

  • Use table tents, posters, and your staff to let diners know about the program. A quick mention by the waiter or waitress can go a long way.
  • Announce your loyalty program on your social media channels. Share updates and success stories to keep the excitement going.
  • Send out newsletters to your customers with information about the program and how they can benefit from it.

Let your customers know what they’re missing out on if they don’t join. You could even offer a small incentive for signing up, like a discount on their next meal. Check out, the top 10 customer loyalty programs for restaurants in India

6. Train Your Staff

Your staff are the face of your restaurant, and they should be on board with the loyalty program too. Train them to explain the benefits of the program to customers and encourage sign-ups. They should also be able to handle any questions or issues that come up.

7. Track and Analyze

Once your program is up and running, keep an eye on how it’s performing. Track metrics like sign-ups, redemption rates, and overall customer satisfaction. This will help you see what’s working and what might need a little tweaking. Maybe your customers are redeeming their points for a different reward than you expected — adjust accordingly!

8. Get Feedback

Ask your customers for feedback on the loyalty program. They might have great ideas on how to improve or tweak the rewards to better suit their tastes. Plus, showing that you value their input can boost their loyalty even more.

9. Keep it Fresh

Regularly update rewards, offer new promotions, and keep the excitement alive. If your customers feel like they’re getting the same old thing, they might lose interest. Spice things up with occasional surprises or seasonal offers to keep them coming back for more.

Wrapping Up

When you understand your audience, choose the right type of program, and offer irresistible rewards, you’ll be well on your way to turning your diners into loyal fans. Remember, the key is to make them feel valued and appreciated for their continued patronage. With a dash of creativity and a pinch of dedication, your loyalty program can become the secret ingredient to your restaurant’s success. Try Reelo for Free!


About The Author

Chainika Dhaila is part storyteller, part strategist, and 100% marketer-on-a-mission. She thrives on turning wild ideas into winning campaigns (and maybe a spreadsheet or two). When she’s not chasing KPIs, she’s probably chasing coffee!

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