Want To Improve Customer Loyalty? Consider A Subscription Program

The subscription business model has taken off in recent years. There is a reason that companies talk about becoming "the Netflix of (insert product or service here)." A successful subscription business can offer a more stable revenue stream and improve customer retention. Does the subscription model have a place in the restaurant business? Current trends suggest that the answer is yes. Over the last few years, an increasing number of restaurants — from large national chains to smaller local establishments — have incorporated subscriptions into their loyalty programs.

LOYALTY MATTERS

Developing loyal repeat customers is critical to any business. The business literature is replete with studies showing that it costs more to acquire a new customer than to hang on to an existing one. According to the Harvard Business Review, "depending on which study you believe and what industry you are in, acquiring a new customer is anywhere from five to 25 times more expensive