The Paid Loyalty Scheme That Works A Treat

The Paid Loyalty Scheme That Works A Treat 1536 868 Cate Triendl

When business picked up after lockdown, the popular western US brand Rib & Chop House decided to elevate their loyalty program to a paid scheme to reward their most dedicated customers. 

Since implementing their exclusive pay-to-join, limited membership ‘Royalty Program’ they have reported great results and have now shared their success story.

Customer Loyalty Vs Royalty

A royalty program allows you to reward your most loyal customers with unparalleled benefits on every visit. This way you can turn your top-tier customers into brand fanatics.

But what makes Rib & Chop House’s program so successful? We had a closer look.

Finding Your Royal Customers

First things first, how do you spot your royal customers? It’s simple, check the analytics from your tech tools to get customers’ insights.

Here are the 3 metrics Rib & Chop House took into account:

  • Top-tier users of their existing loyalty program
  • Big spenders – on average their royal customers had a 14% higher spend than non-royalty
  • High visit frequency – up to 5 times per month compared to 1-3 for loyal customers

In addition, Rib & Chop House noticed another common characteristic: Royal customers really want to experience the venue. Their prime motivation is not collecting points to get a freebie or discount.

6 Royalty Club Best Practice Tips

Rib & Chop House also shared some details of how their paid loyalty scheme benefits their customers:

  1. $600 in gift cards annually – equals the cost of the royalty program membership
  2. Limited the number of members – to make it really exclusive
  3. Offer priority seating – a secured table with no pre-booking required
  4. Allow for anytime cancellation
  5. Host member-only events 
  6. Additional amenities – 10% off every bill, free birthday entrée, a complementary set of branded steak knives

Stay tuned to find out more about how to identify your royal customers.

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