There are several opinions associated with whether or not a restaurant should provide discounts to their clients. While some may argue it hurts the business, others oppose. However, this guide aims to shed light on this issue and reveal how discounts can help a restaurant build more trust with their clients.
Discounts can affect a brand when done the wrong way. However, when done the right way, it can build customer trust and make your restaurant more powerful and reliable. Let’s not forget, that discounting is the fastest and best way to grow a small restaurant business.
Customer trust is essential for a restaurant to succeed. However, the cost of keeping a client is 6-7 times lower than the price of getting a new one. The problem is that merely inspiring trust through quality service alone is not sufficient in making your customer coming back.
If you want to get a better result, which is building customer retention and satisfaction, then the fastest way of doing this is to use a discount and rebate strategy to achieve them.
Why Discounts and Rebates are Effective
- According to statistics, loyal clients makeup 20% of a restaurant’s customer base but are responsible for about 50 percent of its earnings. The trust of an average customer is merely the product of logic and emotion. These clients have to feel some connection with your brand, this is similar to the way they would bond with a friend, and they need to be sure that their trust is worth it.
- On the emotional aspect, discounts could mean a display of value and appreciation to your customers, showing that want to give them the best service. In the logical sense of it, giving loyal client discount would seem more appealing, thus encouraging your client to keep on coming to your restaurant.
However, below are the necessary steps to maximize the value of your discount plan
Give discount only to trusted Customers: Ensure you are rewarding only the most loyal customers by giving discounts only to clients that have been with you for long. This makes it more difficult for your returning clients to abandon you; hence it serves as a more significant enticement for new clients to also keep returning.
Pick the right rewards: All customers are not moved by the same discount package. For instance, Amazon customers order lots of items online; hence, they are profoundly touched by the fast, reliable, free shipping bonus associated with Amazon Prime. If your customers care more about
the quality of the product, then they may appreciate4 a direct product or a gift discount instead. However, use market research to discover the type of bonus you client prefer and give it to them.
Add a social element: Your discount program would be more effective when you add some social element. While doing this, ensure your customers share their deals with family and friends, and your reward will even get to more potential customers. Add a social element to a powerful discount program would make your customers share their reward on social media and also use emails to refer their contacts to the brand.
Capitalize on missed opportunities: Finally, you need to make use of incentive to capitalize on missed opportunities like a customer who was not satisfied with interaction with their previous brands or those who move one restaurant to another. These customers are also like to leave your brand; hence, you need to give them something special to ensure they remain a trusted client.
Peradventure you want to build more trust with your client and grow your business, the fastest way to go about it is presenting an irresistible offer. It’s like you are bribing someone to try your service. Discounting is excellent to make at least new clients walk into your restaurant within a few days, provided it’s done correctly. Therefore, if you use this guide correctly, you will also make your restaurant more influential.