The news: CKE, the parent company of fast-food chains Hardee’s and Carl’s Jr., is the latest restaurant company to launch a loyalty program, per Restaurant Dive.
The trend continues: More restaurant chains are turning to loyalty programs to boost customer acquisition and encourage existing consumers to up their spending.
The benefits of loyalty: Loyalty programs allow restaurant chains to track information such as what items customers purchase and which locations they frequent, as well as what time of day they visit. This information can be used to offer targeted promotions and rewards to increase retention, visits, and order size.
Subscription-based loyalty: Subscriptions are another tactic that restaurants can layer onto existing loyalty programs to capture additional revenues from consumers.
The big picture: “Loyalty programs increase retention and customer spend, and capture valuable marketing data,” said Patty Soltis, eMarketer principal analyst at Insider Intelligence. “They also create a community for the customer, and that builds advocacy for the brand.”