Want Loyal Restaurant Customers? Offer Loyalty Programs - pymnts.com

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Nearly every restaurant manager knows their customers are searching for better deals, and offer regular diners a way to dodge higher prices: loyalty and rewards programs.

PYMNTS research shows that 96% of restaurant managers reduce prices for loyalty program members, with the average loyalty discount coming in at roughly 3.8%.

In other words, the average restaurant prices items 3.8% lower for members ordering through loyalty program channels than for customers who order through on its website.

Our survey found 43% of consumers (an estimated 75 million people) say loyalty programs would encourage them to eat at a restaurant — more any other ordering feature.

Other features include the ability to pay and order online, pick up orders without standing in line and pick up orders via drive-thru and curbside pickup.

Among the diners we surveyed, 37% said they’d be more inclined to order from restaurants that let them pick up their orders without standing in line. Similar shares said they’d be more likely to order from restaurants that let customers pick up their food at the drive-thru (35%) or via curbside pickup (33%).

Quick-service restaurants (QSRs) have an edge over table-service restaurants when it comes to delivering these and many of the other features that customers say will make them more likely to place more orders.

Our research found that QSRs are 99% more likely than sit-down restaurants to allow their customers to pick up online orders at drive-thrus, for example. In addition, they are 77% and 42% more likely to let customers pay with digital wallets and order via app, respectively.

Finally, QSRs are twice as likely as table-service restaurants to offer loyalty and rewards programs, with 67% doing so. This multi-pronged approach to innovation singles them out as some of the most innovation-ready restaurants in the industry.

For a closer look at the findings in our survey, download the Restaurant Friction Index, a PYMNTS collaboration with Paytronix.

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NEW PYMNTS DATA: ACCOUNT OPENING AND LOAN SERVICING IN THE DIGITAL ENVIRONMENT

About: Forty-two percent of U.S. consumers are more likely to open accounts with FIs that make it easy to auto-share their banking details during sign-up. The PYMNTS study Account Opening And Loan Servicing In The Digital Environment, surveyed 2,300 consumers to examine how FIs can leverage open banking to engage customers and create a better account opening experience.

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