Loyalty is a key element in the development of artisanal bakeries. In an increasingly competitive sector where consumer habits are changing, having regular customers is a major asset. According to a study, a loyal customer can generate up to 67% more revenue. Therefore, it is essential for a bakery to implement a tailored loyalty program to strengthen customer relationships and increase revenue. But how can you create an effective program that fosters customer loyalty while generating profits?
Table of Contents:
Why is loyalty essential for bakeries today?
A rapidly changing market
Traditional bakeries are facing shifts in consumer habits. Bread consumption has declined in recent years, and consumers are increasingly turning to specific products like snacks, specialty breads, and pastries.
The bakery snacking sector is growing rapidly and presents an excellent opportunity to build customer loyalty. For more information, check out our dedicated article on the bakery snacking market.
Dealing with increased competition
Artisanal bakeries face increasingly aggressive competition. On one hand, supermarkets and industrial bakery chains attract customers with low prices and 7-day-a-week accessibility. On the other hand, French consumption habits are evolving, with bread consumption declining by nearly 30% in recent decades. In this context, fostering customer loyalty becomes crucial to ensuring steady and long-term foot traffic.
The benefits of a loyal customer
A loyal customer is one who returns regularly, increases their purchase frequency, and may even become an ambassador for your bakery by recommending it to others. Unlike acquiring new customers, which requires marketing efforts and investments, loyalty programs cost much less and ensure recurring revenue.
What are the benefits of a loyalty program for a bakery?
Increasing purchase frequency
By offering attractive rewards, a loyalty program encourages customers to return more often. A person hesitating between several bakeries will more likely choose the one where they receive exclusive benefits.
Increasing average basket size
A good loyalty program also encourages customers to diversify their purchases. For example, by offering discounts or special offers on certain products, you can entice a customer to buy a pastry in addition to their usual bread.
Better understanding your customer base
Digital loyalty programs offer a major advantage: they collect data on customer purchasing habits. By analyzing this information, a bakery can tailor its offerings, provide targeted promotions, and anticipate customer needs.
Boosting visit frequency
A well-designed loyalty program can encourage customers to visit more often. For instance, by offering rewards for repeated visits, bakeries motivate customers to make regular purchases rather than one-time transactions.
What types of loyalty programs work for bakeries?
The classic loyalty card (paper or digital)
This is the simplest and most widespread solution. The principle is easy to understand: with each purchase, the customer receives a stamp or accumulates points, and after a certain number of purchases (usually 10 or 15), they earn a reward, such as a free baguette or pastry.
This system is particularly effective for retaining regular customers who buy bread daily. However, the paper version has some drawbacks: it can be easily lost and requires manual tracking. This is why many bakeries now opt for a digital version integrated into an app or POS system.
Digital loyalty via an app
With the widespread use of smartphones, more and more businesses are adopting fully digital loyalty programs. These solutions centralize loyalty points in a mobile app, eliminating lost physical cards and simplifying reward tracking.
One major advantage of this system is the ability to send personalized offers based on customer purchase habits. For example, if a customer regularly buys pastries on weekends, they could receive a special promotion to encourage an additional purchase.
However, this type of program may deter some less tech-savvy customers. It’s essential to offer an alternative to avoid excluding part of your customer base.
The VIP subscription program
Another approach is to offer a paid subscription providing permanent discounts or exclusive benefits. For example, a bakery could offer a €5 monthly subscription granting a 10% discount on all purchases.
This system has several advantages: it guarantees recurring revenue for the bakery and incentivizes subscribers to buy more frequently to maximize their investment.
However, for this model to work, the offer must be compelling. It’s crucial to calculate margins carefully so the discount doesn’t hurt profitability.
The referral program
An excellent way to foster loyalty while attracting new customers is to implement a referral system. When a customer recommends the bakery to a friend, they receive a reward (a discount, free product, or voucher).
This type of program not only encourages repeat business but also expands your customer base through word-of-mouth. It’s a particularly effective strategy for bakeries looking to strengthen their local reputation.
What rewards should you offer to truly build loyalty?
Rewards tailored to purchasing habits
It’s essential to offer benefits that match customer expectations. A free baguette after several purchases is a classic, but diversifying rewards based on consumer preferences (free pastry, hot drink, discount on a premium product) is also effective.
Seasonal and exclusive offers
To keep your loyalty program dynamic, consider offering special promotions tied to seasons and events (King’s Cake in January, Easter chocolates, Yule logs at Christmas).
Unique experiences
Some bakeries offer exclusive experiences to loyal customers, such as bread-making workshops or early access to new products. These initiatives strengthen emotional connections and highlight craftsmanship.
How to effectively promote your loyalty program?
Use physical and digital channels
Promote your loyalty program everywhere. Clearly display its existence in your bakery with brochures and flyers. Also leverage digital channels like social media, emails, and SMS to keep customers informed about program benefits.
Engagement on social media
Social media is a powerful tool for promoting your offers. Create engaging posts explaining program benefits and encourage customers to share their experiences. Use Instagram and Facebook to highlight rewards and special offers for loyalty members.
Train your team to promote the program
Every team member should be trained to promote the loyalty program to customers. A warm welcome and clear explanation of program benefits encourage sign-ups and enhance the program’s effectiveness.
Conclusion
In conclusion, a well-designed loyalty program is a major asset for any bakery. It not only encourages repeat business but also drives additional sales, improves foot traffic management, and helps stand out from competitors.
Whether through a classic card, a digital app, or a VIP subscription, there are solutions for every customer type. Remember, the key to success lies in personalizing rewards and effective communication to make every customer feel valued.
