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Vivendi's Restaurant: Reward Program Decisions


Nick and Lucia of Vivendi's Restaurant had a sort of informal rewards program. The regulars who came to Vivendi’s were given a free a glass of wine; or a free dessert to share at the table. It was a simple gesture but their loyal customers seem to appreciate it. Nick and Lucia never really tracked how frequent their guests came in or how much they gave away in free services. It just seemed like good business. With the recession, they decided to offer a frequency card. Any guest who came into Vivendi’s 12 times during the year would be given a free meal of $25 or less. Their guest liked this idea so much that Nick and Lucia were having to give out f ree meals in under 6 months to a few regulars, but they felt it was a good investment since they also started tracking what has been spent with each purchase and the average total for the 12 visits was between $250 and $350.


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