A first-timer’s guide to launching a loyalty program

In 2017, I led the launch of Fazoli’s app-based loyalty program, Fazoli’s Rewards — and it was my first time launching a loyalty program.

It was deemed reasonable for a novice like me to take charge due to my background in digital marketing and familiarity with restaurant loyalty apps.

Plus, it didn’t strike anyone as a vast project —?it might end up being 20% of my job, max. Right??

Not quite. Today, I lead the loyalty program full-time.?

During those first few years post-launch, the learning curve was steep. There was a lot of trial and error. At times, I felt inundated with responsibilities.

These were my key takeaways from experience. If you’re creating a loyalty program, I hope these tips help you scope the project and find your way from launch to the next level.

Talk to program operators during competitive research.

In the planning phase, the Fazoli’s team investigated other loyalty apps on the market —?but we didn’t network and ask operators how those apps were performing.

We launched with the most popular structure at the time: for every dollar a user spent, they earned a point. Points were worth a fixed number of dollars off a future tab.?

It was a flat dollar-off discount for loyalty members — at scale, it got pretty expensive.

Shortly after we launched, many loyalty apps restructured to a different method, where each redeemable item had a specific points level required to unlock the free item.

Two years later, we moved to that, too.?

It would have saved us much heartache if we had reached out to other loyalty program operators and asked how the programs were doing behind the scenes.?

Launch with an explainer video — or some other visual.

We posted a video guide to the Fazoli’s Rewards app on YouTube, which became a valuable asset.?It attempted to answer our guests’ most frequently asked questions in a two-minute clip.?

We linked to the video in early emails promoting the app and the welcome email series for people who had just created their loyalty accounts.?

It onboarded many people in the end. It helped that it was visual and that they watched it early in the process instead of waiting to be mid-checkout.?

Those product tours that pop up in the app look cool, but people often skip over them —?they’re rushing to earn or redeem their points.?

Start with at least one full-time hire on loyalty.

As I mentioned, we initially thought the Fazoli’s app would only take up about 1 in every 5 of my workdays —?and it’s a full-time job now.

Every loyalty program is different, but companies often need to pay more attention to the amount of work they take.

It would be best if you had someone to build, manage, and market the program. Today, that’s my full-time job.??

You also must think about customer service. Who will answer their questions promptly if somebody has an issue with the app??

(Customers will often call and email and share their stories on social media until they get a response from the brand.)

Tech providers may offer automated solutions, but you may lose a lot of usability and marketing insights by outsourcing those conversations.

At Fazoli’s, I tried answering customer questions for the first few months, but it became too much on top of my other responsibilities.?

Now we have a part-time hire who focuses on customer questions —?so our loyalty program has a headcount of 1.5. It feels right-sized, at least for now.?

Promote your app with ads.?

Facebook video ads with a “Download the app!” CTA proved itself as a great way to promote Fazoli’s Rewards.?

We targeted the ads, so they only showed up on mobile devices and geotargeted them, so they mostly popped up for people near Fazoli’s locations.?

Once you click download, it takes you straight to the download page in the Android or Apple app store, depending on your device.?

We used those ads around the launch and still use them today — they’re an excellent tool for growing the program.?

Make your app VISIBLE in your brick-and-mortar locations.

When we recently relaunched the Fazoli’s Rewards app, we doubled down on our presence in brick-and-mortar restaurants.?

We had rewards branding on the TV screens and signage about the app on the table numbers and in the drive-through. Where it made sense, we had QR codes linking directly to our app store page.?

I took some inspiration from McDonald’s here —?the last time I was there, there were maybe seven different places in the restaurant with messaging about the app.?

You couldn’t miss that they have a loyalty program, and I wanted Fazoli’s to feel the same.?

Wait at least a year post-launch to restructure your program.?

At Fazoli’s, we waited two years after launch to overhaul our program. When we did it, we had a lot of data to support the decision.?

It wasn’t a knee-jerk reaction. That’s what you want to avoid.?

Guests react negatively when they get used to something, and you change it up. Even if the changes add value for guests, they must relearn how the system works and retool their dining habits accordingly.?

So, make sure you’ve tried making minor adjustments?before you make significant changes.?

Loyalty apps exist to encourage dining habits, not disrupt them.?

Don’t give up!

Every loyalty launch involves some trial and error, no matter how much research you do. Every brand and audience has unexpected idiosyncrasies.

So don’t take the missteps along the way personally. Focus on the big-picture value of what you’re building.?

Loyalty programs drive retention, and at Fazoli’s, the loyalty app has driven over seven hundred thousand post-purchase reviews — enabling a powerful feedback loop.?

The deeper, longer-lasting relationships with your customers will be worth it. Keep going, and good luck!