Question

Design a customer loyalty program for a local restaurant of your choice. Discuss options you considered and why you designed it as you did. How you would measure the success of your program?

Answer 1

answer-

The customer loyalty program for my local restaurant would be for Mcdonalds India as Mcdonalds is struggling with the image of non healthy food so this customer loyalty program may help them to increase their sales.The customer loyalty program will start with Knowing its customers which include questions to answer like-

Here are some questions to ask about each customer:

• How much does this customer buy in a year?
• What type of products do they buy and how frequent are purchases?
• How long have they been a customer?
• Can we sell them other products?
• Do they use other suppliers, and, if so, who are they?
• How much profit do we earn on their purchases?
• How fast do they pay?
• How satisfied are they with our company?
• How could we improve our business relationship?

Prepare your customer loyalty program

Before launching a loyalty program, you need to assess your customers’ current level of satisfaction through such techniques as surveys, interviews and monitoring customer comments.

Then, identify employees who are good at dealing with customers and who will be available to participate in the program. You will need to target customers who purchase frequently from you but could become more profitable, according to your analysis. If the purchase cycle is long (more than three years), this type of program is generally not recommended.

3. Set goals, and measure them with a CRM

Set your goals for the program from the beginning. For example, if your customers purchase on average three times per year, set a goal of 3.3 times a year. This will increase your sales by 10% with few additional expenses. Use CRM software to manage this program. If you are looking for a low‑cost or free CRM solution, you may want to consider our list.

4. Set a budget

Set a budget for managing customer retention and a separate one for developing new customers. To do so, consult your industry average, if you are looking for above‑average growth, increase your budget accordingly.

5. Decide which customers to target

Based on the study described above, categorize your customers (e.g. A, B, C) according to evaluation criteria that are adapted to your needs and objectives.

1. Volume of purchases
2. Ability to purchase more products and services
3. Speed of payment
4. Customer profitability
5. Loyalty over time

6. Choose tactics that will encourage client loyalty

Choose loyalty enhancing tactics that are related to a customer’s purchases, but also to the quality of your business relationship. Here are some examples:

1. Premium service—guaranteed 24/7.
2. Additional discounts when purchase milestones are reached.
3. Exclusive invitation to choosing the menu and tasting
4. Free membership
5. Free tickets or coupons etc.

If your customers are businesses, there’s a good chance this type of program is good for you.

But a customer loyalty program doesn’t mean you can neglect new business development. It’s a never‑ending job to increase your portfolio of loyal customers.I designed this way because it will consider all the aspects from start to end so that there is stone left behind to make the customer loyal to business.this program will help Mcdonald's to make customer loyal even though it is fast food restaurant.The success measure for this would be increase in number of membership, number of customers visiting to restaurants and purchasing the food.