Why do Referrals Work in Restaurants and Cafés

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Referral in Restaurant

Restaurants often face a fierce competition from other restaurateurs in this era of perfect competition. There is always a catch with todays’ customers having higher expectations than ever before with digital loyalty programs everywhere (Click here to know why digital loyalty programs are the best) and them choosing whatever suits them in terms of pricing and offers. It is imperative for owners to come with something unique to not only attain new customers but to keep the present ones engaged to the point where word of mouth marketing becomes an after effect of the reward policies.

Most restaurants already utilize a number of loyalty programs but they miss out on a big thing i.e., the power of referrals. Often we go to places only because it was referred by a friend or someone in our family. So referrals play a big role in holding the interest once the novelty of the offers fade out. Good service and quality food can be of no use if people do not talk and market the restaurant name themselves.  With so many food applications that can provide food at our doorstep with the click of a button, simply having loyalty schemes does not cut it for the business owners.

Let us look at some of the advantages of having referral program in restaurant along with loyalty schemes and offers.



Referrals often come with rewards


A customer that has been a regular and has been part of the offerings of a restaurant is more or less guaranteed to tell his close ones about it. Now if the customer is awarded even more with special discounts and awards as part of referring the restaurant to others, his motivation is doubled plus his loyalty is fixed as he associates himself with the place.


Referral in Restaurant



Customers feel like a part of a greater culture and family


People always have a tendency to accumulate in groups, groups with similar interests. If one is able to create such an environment and initiative through their referral and rewards program, this subculture become lifetime brand advocates. For instance let us talk about the Starbucks referrals program.  The Starbucks Rewards program lets you refer your friends and get points and rewards for that. This whole process creates so much engagement for the customers that they feel they are a part of this whole Starbucks family. This also helps generate organic social media traction. Such interesting schemes make the business more than sales targets and create communities.



Word of Mouth Marketing


Referrals mainly work through word of mouth. We tend to trust people more than advertisements and friends and family influence us a lot.  If a restaurant has a proper loyalty and referral program (Click here to know how to set up a loyalty program for your restaurant) and every plan is running smoothly, word of mouth marketing can take your sales to the next level.

Loyalie offers both loyalty as well as referral schemes management for all types of businesses. They are easy to setup and can be phenomenal in increasing your sales. Let us take care of all your digital loyalty scheme and referral needs. Click here for a quick demo and let us help you.

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