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Customer loyalty programs work. Whether it’s as simple as giving an existing customer a discount for referring a new customer or as big as creating a frequent diner program, a customer loyalty program is meant to make your regulars feel like they are part of something - and encourage them to return.
When a customer feels like your restaurant appreciates them, they are more likely to offer feedback, both good and bad. You need both to have a good conversation.
Is there anything worse than a customer, especially a regular, who has a bad experience and walks out the door without telling you about it? Sure, they might come back. But if they do, they will certainly come in with their guard up. They may also tell their friends how your restaurant botched their meal. Now, you’re facing an uphill battle.
Conversely, if one of your regulars has a bad experience, but they are a part of your “community,” that regular is much more likely to talk to you openly and tell you what happened before they leave. Why? Because they want “their” restaurant to always be at its best. And they know you can do better. That feedback is critical.
Above all else, what better way to reward the people who have made you successful than giving something back? This is what Hawkeye Consultants can help you do: turn your regulars into your best advertisers!
Now take that regular and enlist their help. Forget the old adage “for a good experience you tell one person; for a bad experience you tell five.” Instead of telling one friend about their good experience, they may turn to Facebook or other social media outlets and post a message that reaches out to hundreds, sometimes thousands of people! So encourage them to help you. They give you a name, you send that new referral customer a 10% off coupon. Soon, they will also be on track to become a repeat visitor! Meanwhile you give your regular a discount. They already like you, and you are giving them another reason to come back. With a loyalty program, you can bet they will keep you in their rotation. If in the process, you convert a once-a-month diner to a once-a-week, the investment is well worth it.
Source: National Restaurant Association. 2010 Restaurant Industry Pocket Factbook. Washington, DC: National Restaurant Association, 2010: www.restaurant.org