Loyalty Apps - More than just rewards and discounts

Loyalty matters.

In today's competitive world, where acquiring a new customer costs five times more than keeping an existing one, the success of a franchise brand's app-driven loyalty program is more critical to franchisees than ever before.

"Loyalty apps don't just help drive sales and increase revenue for restaurant owners," says Adam Klaers, executive vice president at Roy Rogers Restaurants. "They build confidence in our customers and forge a bond of trust that can ultimately turn ordinary guests into brand advocates."

Klaers knows what it takes to boost and maintain customer loyalty. The industry veteran, who joined Roy Rogers in December 2022, is keenly focused on optimizing the performance of Roy Rogers' company and franchise locations while positioning the legacy brand to expand in new markets.

Before joining the western-themed quick service restaurant chain, Klaers oversaw and implemented numerous strategic initiatives for 60 Burger King locations owned by the franchise group TOMS King. He also spent four years as director of operations for Chipotle and served as regional director of operations for a 90-unit Great American Cookie Co.

In his new role, Klaers aims to build on the Maryland-based brand's powerful loyalty program and the new Roy's Rewards mobile app that launched for all locations last year.

If you're looking to invest in a surefire way to drive sales and build customer loyalty, Klaers offers the following benefits to consider:

A Convenient Path to Repeat Business

Apps tied to loyalty programs can serve up a user-friendly platform to offer rewards and incentives that lead to repeat business and set you apart from the competition. The result: customers who are more likely to order more often, spend more money per order, and share the love of your brand with their family and friends.

Leverage Loyalty Customer Connections

Leveraging the data and insights gleaned from loyalty apps opens up a world of opportunities for growth in existing and new markets. Understanding your customers' preferences and behaviors can help inform menu offerings, marketing strategies, and business operations to enhance the overall customer experience.

Create Customer Connections

Loyalty apps are not just for earning rewards. They can also help build stronger connections through engagement. Push notifications, personalized offers, and promotions allow restaurants to stay top-of-mind with their customers and encourage them to keep coming back for more. These interactions can be particularly effective when combined with other marketing strategies, such as social media advertising and email campaigns.

What to Consider Before Adopting a Loyalty App

Franchisees need to remember that loyalty apps come with challenges and considerations. First, the app must be user-friendly, especially for customers who may not be tech-savvy. No one wants to lose business because customers can't figure out how to use the app. Cost is also a factor.

"While it's common that the franchisor and franchisee shares in the cost of development, the loyalty structure must be created so it's a win-win-win scenario for the franchisor, the franchisee, and the customer," Klaers says. "A well-designed app with careful consideration given to the loyalty and rewards structure can help ensure that repeat visits and higher average tickets with loyalty users outweigh the short-term discounts offered to customers. It's important that franchisees partner with their franchisor to develop a strategy that is both inclusive and profitable."

With 41 locations across seven states –and growing, Roy Rogers continues to blaze a trail of evolution to meet the needs of a new generation of customers and longstanding Royalists of the brand. To explore our franchise opportunities, visit roysfranchising.com 

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