The paid loyalty scheme that works a treat

A case study in paid loyalty: who Rib & Chop House invited in, and the six benefits that made membership worth paying for.

The US steakhouse chain Rib & Chop House wanted to reward its most dedicated customers, so it took its loyalty scheme paid. The result is the Royalty Program, an exclusive, pay-to-join club with limited membership. It reports strong results and has shared how the scheme works.

Customer loyalty versus royalty

A royalty scheme rewards your most loyal customers with real benefits on every visit. The point is recognition rather than points: it turns your top-tier customers into brand advocates.

Here is what makes the Rib & Chop House scheme work.

Finding your royal customers

Spotting your royal customers starts with the analytics in your own tech: what your data says about spend and visit frequency.

Here are the three metrics Rib & Chop House used:

• Top-tier users of their existing loyalty scheme

• Big spenders: their royal customers spent noticeably more than everyone else

• High visit frequency: coming in several times a month rather than once or twice

They noticed one more shared characteristic. Royal customers want to experience the venue itself. Their prime motivation is not collecting points for a freebie or a discount.

6 best practice tips for a royalty club

Rib & Chop House also shared the detail of what members actually get:

1. $600 in gift cards annually, equal to the cost of the membership

2. A cap on member numbers, to keep it genuinely exclusive

3. Priority seating: a secured table with no pre-booking required

4. Cancellation allowed anytime

5. Member-only events

6. Additional amenities: 10% off every bill, a free birthday main and a complimentary set of branded steak knives

If a paid tier is worth testing at your venue, start by finding the customers who would pay for it. Your loyalty and spend data shows you who they are, and a demo will show you your own royal customers in your own numbers.