How Service-Side Technology Shapes Restaurant Loyalty

Changes in consumer behavior and technological advances are changing the restaurant industry.

The changing level of loyalty and commitment is also a trend to watch, Steve Fuscopresident and head of all distribution for Rewards Networksaid PYMNTS.

“If you look at the general direction of technology, everything is becoming more and more automated, and in fact, simpler … many restaurant technologies use the same method,” said Fusco.

It was during the COVID-19 pandemic that the large-scale implementation of technology such as QR codes for menu access and ordering began to emerge, reflecting the consumer’s approach to convenience and less contact.

Fusco stressed that while technology plays an important role in dining, the essence of a memorable dining experience lies in the quality of service. This realization has encouraged many restaurant owners to focus on creating an atmosphere that promotes loyalty through personal and attentive service, rather than relying solely on technological solutions – especially when customers want a return to traditional, service-oriented dining practices.

This highlights an important insight: Eating out is more than a business; it is an experience that technology cannot replace.

But that doesn’t mean experiential technology can’t be productive, powerful and profitable.

“In today’s world, eating is not about technology anymore is about integrity,” Fusco said.

The Role of Technology in Creating the Restaurant Industry

Fusco says his company’s primary goal is to drive full-price dining into restaurants, improving those restaurants without resorting to discount strategies that can erode profitability.

By partnering with major loyalty businesses such as airlines and hotel chains, Reward Network helps restaurants attract customers who are likely to spend more and return more often, while positioning themselves as an important partner for restaurants, especially local and independent places that may not have a lot of money. market access to larger chains.

This approach provides an advantage to smaller restaurants, which often lack the resources to implement comprehensive marketing and loyalty programs.

One of the unique offerings from Reward Network is its ability to provide detailed feedback analysis based on customer feedback, Fusco said. This tool helps restaurant owners to highlight specific aspects of their service or food quality that’s it influencing their overall score. By understanding these concepts, restaurants can make informed decisions to improve their offerings and improve customer satisfaction.

Fusco pointed out that such data-driven insights are especially valuable to small, independent users who may lack the resources to conduct comprehensive market research. This capability levels the playing field, allowing smaller places to compete with larger chains to provide a superior dining experience.

In addition, while large, nationally distributed brands can capture a lot of customer data, independent operators often struggle to gather actionable data.

Emerging Media and Metrics That Matter

When it comes to To evaluate the effectiveness of loyalty programs, Fusco advised restaurant owners to focus on metrics that align with their business goals. While common metrics include customer acquisition, repeat dining behavior and average ticket size, the key is to understand what the restaurant aims to achieve.

Whether it’s increasing first-time visits or improving customer retention, the metrics chosen must directly reflect this goal, he said.

Discussing emerging engagement channels, Fusco highlighted the incredible importance of email marketing, especially in the local context. Although it is not the most advanced method, email is still an important tool for building and maintaining a large workforce.

Other modern media, such as social media platforms such as TikTok, has also become important for restaurants looking to engage with a young, digitally savvy audience. Fusco said that successful restaurants often hire staff dedicated to producing interesting content, such as videos showcasing unique dishes or special events. This content can be very impactful, increasing the restaurant’s visibility and customer traffic.

Rewards Network’s success is largely built on its strategic relationships with well-known loyalty products, said Fusco, who emphasized the importance of aligning with trusted partners such as. American Airlines, Delta Air Lines and Marriott Bonvoy. These partnerships allow local restaurants to attract more customers, providing loyalty rewards that would otherwise be unavailable. to them.