So you’ve decided you want to invest in a loyalty program for your restaurant, but after checking your options, you can’t figure out what you’re looking for. Now what?
Well, you have to be careful; making the wrong choice can set your restaurant back in terms of profit. Why? Because you’d have to start over with a new compatible program. Choosing the wrong loyalty program = ineffectiveness = fewer sales. If that makes you indecisive, we don’t blame you!
Just the opposite. In this article, we’ve compiled a complete checklist and questions to ask about loyalty program demos. So strap in, open a new tab, and get ready to take some notes before you start testing demos!
Key Features to Evaluate During the Demo
Before spending money on an incompatible loyalty program, it’s good to know that most providers have a demo where you’ll be taken on a tour of all the program’s features. It’s an essential step in understanding how the software will meet your needs.
During the demo, you’ll get a firsthand look at the user interface and functionality of the loyalty program. To avoid being overwhelmed, we’ll help you narrow your focus on the features that you should keep an eye on.
1. POS and Third-Party Integration
Why it’s important: If your restaurant has online ordering or expects digital revenues, it’s crucial to find a loyalty program able to fulfill those needs, usually through e-commerce software like Shopify. This is why integration with third-party tools is important.
Along the same lines, you might want to check if the program provides a dedicated POS system or can integrate with your existing one. If you already use a CRM and email marketing tool like Klaivyo, you better check if the program’s compatible too, or else you’ve got a lot of additional backend work to do.
These types of integrations can automate a lot of your processes, synchronizing customer data across different systems, and streamlining not only data collection but also marketing campaigns. An example of robust integration is this: automatically sending an email after recognizing a completed transaction from in-store dining. Later, data from that transaction can be used for customer segmentation and personalized offers.
2. Types of Marketing Campaigns Offered
Why it’s important: Not all loyalty programs provide the same marketing features. That’s why comparing them with one another is an ideal way to figure out what works for you. The best kinds of loyalty program marketing are the ones that use gamification tools and harness customer data. For example, limited time point multipliers boosting off-peak days. The right loyalty provider utilizes customer history to craft a compelling campaign that they won’t be able to resist.
Whether it be omnichannel marketing across multiple platforms, automated campaigns, or offering tiered rewards, you should take note of their availability and how much they accommodate your restaurant plans.
If your small sized restaurant doesn’t have social media, but plans to build an online following, then you might want a loyalty program that offers integrated Google Reviews marketing to grow your audience naturally.
3. Customizability for Both Restaurant and Customer
Why it’s important: A one-size-fits-all loyalty program has become an outdated method that customers are growing out of. That’s why the typical customer only uses half of the programs they enroll in. This means that better personalization, such as allowing customers to get extra points on their birthday or using their names for curated messages, can make customers feel more valued.
On the other hand, your restaurant’s brand synergy may also be at stake. You might want to pick a loyalty program that allows customization not only for the benefit of your customer, but also to reflect your branding. If you have an established Instagram business account for instance, you need a program that allows the customer portal to link directly with your page.
More than that, if your restaurant’s main draw is its location, and you’ve spent a lot of money on maintaining the property, you can find a program that gives you more control over the reward structure and how points can be earned or redeemed, prioritizing visit-based rewards rather than points.
4. Accurate Analytics and Data Collection
Why it’s important: Your main source of information will be derived from first-party data, which is data collected from customer interaction with your restaurant. This includes transaction history, redemption behaviors, and engagement rates. If you want to acquire new customers and keep old ones loyal, then you need a dynamic loyalty program working from accurate data.
That’s why you need analytics that cover different demographics. For example, you can identify high-value customers with high spending patterns and at-risk customers who have become less active. Your campaign can target them both with two different automated campaigns: one to encourage retention and the other to win back customers.
On the other hand, inaccurate data can cause loss due to an impersonal customer experience. Imagine a customer who is already spending above your expectations, getting huge regular discounts meant for re-engagement. It’s a waste of expenses that could be better spent on your at-risk groups.
5. Scalability and Growth
Why it’s important: Who knows how your restaurant will grow in a year or two? With an optimistic outlook, your restaurant could scale upward double in size, adding more locations in or out of the city. How will this affect your POS system?
Some programs have additional fees and offers for multi-location businesses. These are the things you should consider, whether or not the program is growth-friendly and flexible enough to expand in parallel with your restaurant.
What if your restaurant wants to branch out into an international chain? Your loyalty program has to reflect that, localizing marketing and diversifying rewards. Many AI-driven programs thrive in handling large-scale initiatives like this on the fly, but spiking operational costs may be an issue for unprepared restaurants. So whatever solution works for you in the present, you have to anticipate problems ten steps ahead, and be ready for what your restaurant could grow into!
6. Price-to-features Ratio
Why it’s important: Looking at the listed features, you should ask yourself, is the pricing justified, or are there better alternatives suited for your restaurant? Especially if you’re a small or mid-sized restaurant, you need to assess whether or not you’ll end up using all the features or if it’s better to choose a different pricing plan first to test the waters.
This is where comparison comes in! You may find that one program offers gift card integration for free while another charges an additional fee for it. But does your restaurant even need gift card integration? That’s why asking questions is important… for your team, but also for the loyalty provider.
5 Must-Ask Questions During the Demo
Like any big financial commitment, there are some questions you need to ask about what you’re putting your wallet in. To align your goals and long-term plans, let’s take a look at some questions you need to ask loyalty program providers before making that final decision.
1. Implementation
- “How long does the setup take? Do you offer onboarding support for the team?”
What to Expect: In general, one to two months of prep ensures the loyalty program is fully functioning and every feature operates without a hitch. Onboarding support can familiarize your team with the program’s ins and outs. It can include training materials and initial troubleshooting or technical support. Altogether, this prepares your loyalty program for a smooth sailing launch and is prepped for customer engagement.
2. Pricing and Hidden Costs
- “Are there additional fees for updates, customer support, or integrations?”
What to Expect: Not all fees are transparently stated on the home page. Some loyalty providers have implementation fees and add-ons in addition to the monthly subscription.
Before you set out committing to one loyalty program, it’s wise to ask whether the program’s pricing model is subscription-based or on a per-customer basis. Some programs also have hidden fees that you should be aware of, either for setup or customization. Additionally, information about possible discounts for long-term contracts may not be readily available on the website, making for a helpful follow-up question.
Besides, you wouldn’t want to unknowingly overspend! Being mindful of cost-effectiveness is a good way to avoid a bloated budget coming back to bite you.
3. Security & Compliance
- “How is customer data protected? Are you PCI/GDPR compliant?”
What to Expect: Loyalty program fraud is something that can happen with any provider. The account could be taken over by a third party to access personal information or make unauthorized purchases. To reduce the possibility of a data breach, the golden standard is for the provider to implement multi-factor authentication.
It’s equally important to get clarification regarding the program’s compliance with relevant data protection laws, such as Europe’s GDPR and the global PCI Security Standard. This makes sure that the program not only protects sensitive data from your restaurant but also guarantees customer privacy.
4. Customer Success
- “Do you provide dedicated account managers or 24/7 support?”
What to Expect: It’s reasonable to assume that once you have the loyalty program up and running, you might bump into some issues and kinks to iron out. That shouldn’t be a problem, but only if the program provides adequate resources on how to use the system, like a customer service representative.
You could ask whether or not customer support is available 24/7, if the program has a training set up for your team, a personal account manager, and how self-sufficient the program is at managing itself after the initial learning phase. Asking for consultation isn’t something to shy away from, but you have to make sure the program can account for that likely possibility.
5. Case Studies
- “Can you share examples of success with similar restaurants?”
What to Expect: There’s a saying, “Show, don’t tell.” Every loyalty program can talk big, but it’s worth nothing if they can’t back up their boasting with real success stories. Genuine case studies will make it easier for you to get a handle on what your relationship with the program will look like going forward, along with understanding the type of strategies and solutions that they’re likely to provide.
To facilitate a smooth collaboration, it’s good to let the loyalty program do an elevator pitch for you, proving their experience through documented success in helping real businesses. You can ask for testimonials from other restaurant owners too, giving you unbiased insight into your decision.
Click here to view the complete list of questions to ask the vendor during the live demo
Basic Functionality
- How does your loyalty program work from a customer’s perspective?
- What are the key features of your loyalty program?
- Can customers earn rewards through multiple channels (e.g., in-store, online, app)?
- Can the system automatically track customer activity, such as purchases, visits, or spending patterns?
Customization & Branding
- Can the loyalty program be customized to reflect my restaurant’s branding?
- Can I create different reward tiers or personalized offers for my customers?
- Do I have control over the reward structure and how points are earned and redeemed?
Integration with POS and Other Systems
- Does your loyalty program integrate with my current POS system?
- Can it sync with my existing CRM, email marketing, or other business systems?
- How easy is it to set up and integrate with third-party tools?
Customer Engagement
- How does the loyalty program encourage repeat business?
- Can customers receive personalized offers based on their spending habits?
- Can I send targeted promotions (e.g., birthday rewards, special discounts) to my loyal customers?
- How does the system help with customer retention and engagement?
Mobile & Online Access
- Do you offer a mobile app for customers to track their points and rewards?
- Can customers access their loyalty information online (e.g., on your website)?
- Can customers join the loyalty program directly through the app or website?
Data Analytics
- What type of reporting and analytics are available for tracking loyalty program performance?
- Can I see detailed customer data, such as purchase frequency, average spend, and reward redemptions?
- How does the program help me understand customer behavior and make data-driven decisions?
Support & Training
- What kind of support do you offer during setup and afterward?
- Do you provide training or resources to help my team understand how to use the system?
- Is there a dedicated account manager or customer service representative I can contact?
Pricing & Fees
- What is the pricing model for your loyalty program (e.g., monthly subscription, per customer fee, transaction-based)?
- Are there any additional hidden fees (setup, support, customization)?
- Do you offer any discounts or promotions for long-term contracts?
Security & Compliance
- How secure is customer data within your system?
- Are you compliant with relevant data protection laws (e.g., GDPR, PCI-DSS)?
- How do you handle customer privacy and ensure sensitive data is protected?
Scalability & Growth
- Can your program scale as my restaurant grows (e.g., adding locations, increasing customer base)?
- How easy is it to expand or update the loyalty program in the future?
- Do you offer options for multi-location businesses or franchise models?
Success Stories and Case Studies
- Can you share any success stories or case studies from restaurants or retailers similar to mine?
- How have other businesses benefited from using your loyalty program?
- Do you have testimonials or reviews from other restaurant owners?
Trial & Flexibility
- Do you offer a free trial or pilot program to test the loyalty system before committing?
- What happens if the system doesn’t meet my expectations after I’ve signed up?
Post-Demo Steps
After you’re satisfied with the loyalty program demonstration, and all your questions have been answered by the provider, it’s time to do the final stretch, which is your team’s internal deliberation. Let’s review some final steps you can do before you finalize your choice of loyalty program.
1. Scorecard Evaluation
- Rate the platform based on ease of use, ROI potential, and support
How to Decide: A scorecard can help you evaluate a loyalty program’s effectiveness. It’s basically reviewing each platform based on their demos. The metrics you should look out for are its ease of use (how many problems did you have while navigating it? Is it confusing?), ROI potential (looking at the total cost, their track record, and predicted value, what is the estimated return of investment?), and support (does it offer technical support? Is it integrated with other systems?)
2. Compare Vendors
- Use a side-by-side matrix
How to Decide: Having tried different loyalty programs and finished chatting with their providers, you can compare them based on their available features, how their price scaling corresponds with your estimated growth, and their range of available integration with third-party systems. From there, you can get a clear image of what you want for your restaurant in relation with what the program can provide, and pick the best fit!
3. Request a Pilot
- Ask for a free trial or small-scale test before committing
How to Decide: Still unsure? Maybe you need to pilot-test the program! A pilot is a limited version of the loyalty program that you can launch for a small group of customers. This can validate assumptions, identify issues, and measure the program’s impact before a full-scale rollout. This last step will either reassure you of any worries you have about the program or prove them right.
Conclusion: Making the Most of Your Loyalty Program Demo
The bottom line is: it’s important to ask the right questions before choosing a loyalty program provider. From hidden fees to case studies, getting to know your loyalty provider can help make your decision easier, and your later day-to-day operation, even more so!
At the end of the day, you know your restaurant best. But you might not know what the best loyalty program for your restaurant is. That’s where we come in! It’s important to take a step back and have an informed approach when selecting a loyalty program provider. If you’re still hesitant to start subscribing, don’t worry! Have a taste of top-of-the-line loyalty features by signing up to SimpleLoyalty for FREE.
