Red Robin offers some of the best burgers in America and its sales are very impressive. BusinessWire reports that its total revenue was a whopping $315.4 million in the second quarter of 2018!
Aside from some truly delicious burgers, part of their success can be attributed to their loyalty program which incentivizes customers to keep coming back for more. And what’s more, it’s not just a loyalty program, it’s a Royalty Program: a witty play on words with alliteration (Red Robin Royalty) as well as making a promise that customers will be treated like royalty.
What makes the royalty program special and effective? Let’s take a look at what they have to offer:
1. Red Robin Rewards Customers for Checking Out the Royalty Program
During the first five weeks after you’ve signed up to their Red Robin Royalty program, if you make a purchase at Red Robin for five times, you get a $20 Reward that you can redeem during your 6th visit.
Red Robin rolls out the red carpet for Royalty Regulars
One of the biggest problems for F&B outlets is turning new customers into loyal regulars, even for an established chain like Red Robin. This offer lets customers build up the habit of going to the restaurant in the first few weeks of the program, setting down a pattern that will have them returning on the 7th, 8th, 9th visit and onwards!
2. Red Robin Royalty Program Promotes Limited-Time “Surprise and Delight” Offers
Red Robin’s “Surprise & Delight” rewards are limited-time deals that go away if you don’t claim them — playing on the fear of missing out.
For example, last National Cheeseburger day they offered a gourmet cheeseburger with bottomless steak fries for only $5 – but only if you checked your email and used the offer on the day.
Feel the FOMO. Taste the burger.
They also offered free a Red Robin Tavern Double Burger and Bottomless Steak Fries last October 9, with the purchase of two beverages and any burger, entrée or entrée salad. They sent the offer details via e-mail to members of their Red Robin Royalty program.
Their limited-time offers give customers a reason to pay attention to their marketing. If you don’t check your email, you might miss out on a great deal! In addition, it gives the Red Robin an opportunity to generate data about the impact of each offer on customers, which helps them make their program extra sticky for future offers.
3. ‘Punchcard style’ 10th item free offer
At Red Robin, they use this same technique to woo customers. They offer every 10th item for free. For example, if you purchased 2 entrees and 2 full-sized burgers in one visit, you’ll receive 4 credits towards the “10th item free” reward. Possible free items include mix and match burgers, salads, sandwiches and entrees.
The app shows how far away the free item is, as well as the other treats on offer. Via Jen is on a Journey.
Note: The Red Robin Royalty App has been discontinued as they revamp the app. The screenshot is from an earlier version but the program details remain the same.
This has gamified the purchasing process — so that you might order one more entree, or even bring friends to the restaurant to fill in your rewards.
4. Personalized rewards
Red Robin’s loyalty program also features personalized rewards for customers.
They offer free burgers during a customer’s birthday. They can choose from over 24 gourmet burgers and during their birth month.
They also offer special military rewards to those who served in the US military, as well as special rewards for teachers.
It’s nothing new, but the strategy makes customers feel that they’re appreciated.
The Secret to Chick-fil-A’s loyalty program success:
Here’s what we’ve learned from Red Robin’s loyalty strategy:
1. Create a loyalty program that delivers limited-time offers to members.
2. Reward customers for regularly visiting your restaurant or establishment.
3. Implement a punchcard style rewards program to increase repeat purchases.
4. Deliver personalized rewards like birthday offers and special awards.