Evaluating Referral Programs to Maximize CLV for Restaurants

Referrals are one of the most reliable and trusted factors in customer acquisition resulting in remarkably high profits. It is an effective way to acquire anonymous customers by the existing ones. When establishing a referral program, many questions arise for businesses like:

Are they are using the right type of referral program Do referral programs drive sign-ups?  And, most importantly--referrals have an impact on customer lifetime value (CLV) and is the impact statistically meaningful?Does referral have an impact on customer lifetime value (CLV) and is the impact statistically meaningful?

Historically, restaurants, and chain owners, in particular, experience significant struggles with these questions due to limited knowledge of their customers.

In order to overcome these challenges, many restaurants look to cloud marketing and customer data platform solutions to effectively target different customer segments with offers, gaming, online ordering, gift cards, referrals, social…