If you missed our first article with examples and great ideas from East coast to West, check it out here. If you’ve already read part 1, you can skip down to the examples from Hawaii & the Pacific NW on how Independent Venues get more customers in their door, make them happy, keep them coming back for more, and increase word-of-mouth marketing.

RECAP: How much does it cost to get a new customer vs. keep an existing customer?

• It costs FIVE TIMES more to get a new customer than keep a current customer, but most of us (40%) focus on getting new customers instead of focusing on retention (18%).
• You can increase your profits by 25-95% with just a 5% increase in customer retention
• Loyal customers are 5x more likely to repurchase, 5x more likely to forgive, 4x more likely to refer, and 7x (!!) more likely to try a new offer.

But, do those customer loyalty card programs or point systems actually work? And, if those little scanner/punch cards don’t work, WHY don’t they work?

RECAP: Why does a customer loyalty program matter?

Local restaurants and bars have (at least) 3 things in their favor over goliath corporations:

1. Proximity to customer’s homes/work
2. Face to face encounters with real people
3. Customers might bump into their friends.

Key Points:

• It matters to do something creative, unique, and if possible, tangible: this gives your customer a sense of ownership. If they can touch it, bring it home, or put their name on it, it’s like taking a little slice of their favorite place home with them.
• Customer loyalty programs don’t have to be FREE…Remember, you value what you pay for. Unlike punch cards and grocery point systems, the most effective loyalty programs for restaurants and bars are those where people actually pay for the privilege to: be first, make a reservation, or have their name etched in glass on a wall.

4 Impressive Customer Loyalty Programs: 
Creative, Effective Customer Loyalty programs to improve customer retention.

Since you go through great lengths to be unique, from your craft cocktail menu to your Drag Queen Bingo Brunch…we found some of the most ‘crafted-with-love’ loyalty programs from east coast to well beyond the west coast.  Keep reading to see how they do it.

Kona, HI (The Big Island): home of free-flowing lava, host to the Ironman World Championship, where the aloha spirit is alive and well.

Ola Brewing Co – MUG CLUB

 “If you move to the island I suggest you purchase their mug club card for $100 a year. You flash this card & it doubles the size of your beverage without an additional charge.” – Colleen, happy customer on yelp.

This happy customer summed it up with their 5 star review, making it sound like a no-brainer for locals. With card-carrying members, Ola Brewing Co has created a community of regulars that benefit the more they come.  But more than that, they have created a sense of ownership and identity with a card that they carry with them where’er they go. 

This is priceless.  But of course, they are also getting a steady stream of upfront income, and a guarantee of repeat purchases.

There is no way to steer wrong with this idea.  There are no straight freebies…just a little extra love in a glass.  And we all know that you can’t drink a frosty beverage without a salty side….and preferably a friend.

Medford, OR

Copper Plank – MUG CLUB

We also talked to Copper Plank, an AmptUp VIP Venue, who hosts an elegant version of the Mug Club with glass mugs locally etched with the member’s name and the year they joined. This becomes a symbol of pride for regulars as the years wear on.

 “The culture it creates is pretty powerful,” says co-owner Amy Maukonen.  “If a new regular starts to come in…they’re pretty welcoming, but you’ll hear the other regulars say ‘Hey, why don’t you have a mug with your name on it?’  It becomes an investment, like: ‘We believe in you and we’re part of this community.’  It’s a sign of loyalty to us, while also bringing a sense of ownership of the shared community space,” she continued.

LOYALTY PROGRAM details:

• Mugs with names/dates are prominently displayed on a shelf as their permanent home, until renewal.
• Members get an extra 4oz when ordering (and paying for) a pint with their mug.
• Mug Club renewal happens the month of Jan – so it helps bring in revenue during a typically slow month.
• Non-renewals get to take their mug home with them.
• ~50% of mugs get used on a weekly basis
• Currently at about 50 ppl, they want to grow and cap it at 100 (which may give it an air of exclusivity, a true ‘club.’)

Things to consider?:

There are some tricky logistics that can be “a pain in the rear,” according to Maukonen – ie:

• the storage of the mugs
• because it’s a specialty item, what do you do if/when it breaks and it needs to be replaced
• the renewal can be really messy if there’s not a reliable way to track this
• Figuring out the marketing for the program and staff expectations for renewals and non renewals.

Oregon & Washington: Home to all things W.I.E.R.D. (Wild, innovative, eclectic, revolutionary, disruptive)

MCMENAMINS PASSPORT

This passport brings out the hidden gamer in all of us.  Tapping into a gamification strategy isn’t new, but it’s well done at McMenamins. 

For a little background, McMenamins is an entertainment, dining, and drinking staple in the Pac NW. Virtually every man, woman, and child who has lived here has visited more than one McMenamins.  These renovated historic buildings, their creative entertainment, unique art, and ambiance wraps you in (a distillery? A wine barrel aging room with live music in an old work house? A Roman-style soaking pool in an old elementary school? A cigar lounge in the engine room?).

To have created this concept in the first place is a beautiful feat. To turn this into an almost 60 Venue regional chain, with each location as beloved by its community, as the next? Unbelievable.

Because they have so many incredible locations, they created a clever way to help their fans get the fullest experience. The Details:

1. Participants pay $35 for a physical passport booklet,
2. They visit locations between Oregon & Washington to collect their stamps.
3. They can collect stamps by making a purchase or by completing a clue/task for that location, earning a prize when all stamps for the region have been collected…and a title to boot.

Because you don’t value what you don’t pay for, The $35 paid for these “just-for-fun, I-was-there-and-I-can-prove-it stamps,”  elicits commitment and excitement – getting their feet through the doors at as many locations as possible.

Here are some hallmarks of this effective program.

First, they have a dedicated page for the program:

It often happens that Venues don’t update their sites, let alone mention their loyalty program. (If you’re not updating your website because it’s confusing, someone else controls it, or you don’t even know where to start – it’s time to get a new website. With sites like squarespace and Wix, you can have a gorgeous, easily managed site up in about 30 minutes, for less than $20/mo.)

Something Tangible:

As with any good game that goes down in history…there is something tangible, a little piece of the experience that people can take home with them and own. The passport and stamps act as physical game board, if you will (move over Monopoly).

Prizes:

Oh yes…of course, there has to be SOMETHING! (free tots, burgers, appetizers, goodies, exclusive Passport pint glasses, T-shirts, a growler and other merch.)

Titles

McMenamins goes beyond the simple satisfaction of a full book of stamps and prizes, full passport owners get ‘crowned’ as an official “Cosmic Tripster.”

Proper Rules:

Any good game needs rules…in writing! In an official location (the website). If you’re going to do it, do it right, am-I-right? See McMenamins rules here.

The Unique Sauce:

• Adventure and travel (real not just imagined!).
• Competition to get all of the stamps – self-motivated or with a friend.

Make it your own

So, few of us have 60 locations.  But, a sense of competition, a tangible piece of the experience, or being ranked or celebrated…are things you can incorporate that would keep customers coming back.

Create a passport with various tasks to complete, games to be won, or drinks to be tried.  Make the stamps unique (you can even get custom stamps on Amazon!) or even make it ceremonious with a dripped wax seal stamp (find options here or at Portland’s coolest print shop Oblation).  And don’t forget to either charge for it, or make ‘em work a little…that’s what makes it worth it! That’s what forms the CLUB.

Read Part 1 with Other Examples

Curious to see what the first 2 examples were? Check out part 1 of our Membership and Loyalty Programs Inspiration series.

• Read about Multnomah Whiskey Library’s $800 yearly membership club, and how it sold out in the first year with a 3 year waiting list.
• Read about the Fernet Members Club and it’s wall of liquor.

How much does it cost to get a new customer vs. keep the old ones?

It costs FIVE TIMES more to get a new customer than keep a current customer, but most of us (40%) focus on getting new customers instead of focusing on retention (18%).

Here are a few other facts that could be critical to your business:

• You can increase your profits by 25-95% with just a 5% increase in customer retention
• Loyal customers are 5x more likely to repurchase, 5x more likely to forgive, 4x more likely to refer, and 7x (!!) more likely to try a new offer.

But, do those customer loyalty card programs or point systems actually work? Do they get people to come back? I usually lose any cards before they make it to my key chain.

Since you go through great lengths to be unique, from your craft cocktail menu to your Drag Queen Bingo Brunch…we found some of the most ‘crafted-with-love’ loyalty programs from east coast to well beyond the west coast.  Keep reading to see how they do it.

Why does a customer loyalty program matter?

I like getting my fuel points and flight miles as much as the next person, but do local restaurants really get a boost from loyalty programs? Local restaurants and bars can benefit from customer loyalty programs MORE than goliath corporations because they have (at least) 3 things in their favor:

• Proximity to customer’s homes/work
• Face to face encounters with real people
• Customers might bump into their friends

And here’s why it matters to do something creative, unique, and if possible, tangible: this gives your customer a sense of ownership.  If they can touch it, bring it home, or put their name on it, it’s like taking a little slice of their favorite place home with them.

Customer loyalty programs don’t have to be FREE…Remember, you value what you pay for. The most effective loyalty programs are often those where people actually pay for the privilege to: be first, make a reservation, or have their name hand-written in ink on a wall.

4 Impressive Customer Loyalty Programs:

Newport, RI: Tourist Hotspot, Quaint Town, Playground of the Rich & Famous (from the Gilded Age to present)

STONEACRE BRASSERIE

From the Rockefellers to Taylor Swift, Newport has hosted the rich and famous, as well as everyday workers.  While most VIP programs give exclusivity that is meant to be private, Stoneacre Brasserie created a loyalty program that was meant to be shared and seen. Their highly visible Fernet Club created an instant “What is that?” “I want one!” customer loyalty program.  I spoke with Chris Bender (a former New York restauranteur and owner of 4 Newport restaurants), to learn more.

Fernet Branca (fur-nette) is an Italian brand liqueur that has “become a bartenders’/hipsters’ drink of choice” with an aggressive, unique flavor, sporting notes of Anise, bitter citrus, and a subtly sweet finish. Stoneacre’s Fernet Club allows customers to buy a bottle at a significant cost savings, put their name on it and place it on the wall.  When they’re ready to drink, they just pull it right off the wall, and enjoy.  Some members even call in to offer a shot from their bottle for friends who are visiting.

“It actually started by accident 4-5 years ago, but then we sold 50 bottles in the first 2 weeks. It gives people a sense of ownership and a way to love you even more than they already do,” says Bender. 

Portland, OR: Hipster Haven, Nature’s Playground, the “Silicon Forest,” home to the World’s Largest Naked Bike Ride.

MULTNOMAH WHISKEY LIBRARY

ONE year after opening in 2013, the wait list for a membership was over 700 people, but now the waitlist is over 3 years long.  To be clear, this wait list was not for a reservation, no, their innovation was much more clever and effective: their wait list was for the ability to HAVE a reservation. Multnomah Whiskey Library completely reinvented the concept of membership, previously known to the stuffier private clubs that have never soared in popularity in Portland.  A membership lets you skip the line where waits for a bar could be up to 3 hours.

With around 1,500 labels, about 900 of which are whiskeys, the Multnomah Whiskey Library has become one of the most prized locations to drink and talk shop about, you guessed it, whiskey.  So dedicated to the spirit are they, that a series of art was commissioned to portray the major historical influencers of whiskey production: from tuxedo-clad Phylloxera beetle to some of the greats.  

And now?: “The waits are still long, the bartenders are still dashing, and memberships are still as hard to come by as a bottle of Pappy Van Winkle.” (pdx eater)

Current cost:

The current fee for MWL’s annual individual membership is $800, plus a one-time $199 setup fee for new members.  Add a Member’s spouse/partner to for an additional annual fee of $175. Corporate memberships begin at $2,900.

How to craft the perfect Membership Program

So what does a membership get you?  Of course, paying hundreds of dollars per year in Portland MUST come with something more than the ability to create a reservation, and so it does.  However, these items don’t need to cost Venue owners a hefty price. Get some ideas from MWL.

At Multnomah Whiskey Library, members are entitled to:

• make reservations (in the bar, or private event spaces)
• access the private Member Lounge,
• get exclusive access to Single Barrel offerings, tastings and other events
• Valet park for free
• Priority access to rent a Spirit Locker
• Access reciprocal clubs around the world
• Nominate friends and family for membership, shortening their wait
• Join members-only events, classes, pairing dinners, as well as networking and volunteer opportunities
• Access exclusive member trips exploring iconic distilleries, towns, and local excursions.
• Two Member Hall Passes per year, so friends and family can make a reservation
• A complimentary drink of your choosing on your birthday ($20 value).
• Member discounts including discounted room fees for private events.

A twist on traditional membership:

However, if you feel like the vibe of VIP-members-access doesn’t fit your Venue, take another look at their, once again, unique approach.  In admirable Portland style, their memberships aren’t just for the hoity toity men of means…they openly value diversity and community service and even bump people higher on the wait list for embracing those values.

Priority access can be granted for the following reasons. If you:

• “demonstrate a commitment to your community through donation, volunteering, advocacy.”
• “reflect our community and embody diversity of thought as well as a wide range of human experiences, values and perspectives.”
• know a member who can nominate you.

And yes…they have been known to RECEIVE, but not take, subtle bribe offers to scoot past the membership wait list.

TO BE CONTINUED…

We hate to leave you hanging, but an exciting part deux will be coming next, to bring you the other two most creative customer loyalty programs for customer retention.

But good things come to those who wait, just like… (say it with me:  Beetlejuice part 2!! Coming 2024.).