How data collaboration is reshaping restaurant loyalty programs

With 95% of Australians in at least one loyalty program, restaurants need more than discounts to stand out, argues Melanie Hoptman, managing director, Asia Pacific, at LiveRamp.

In today’s competitive and cost-sensitive dining landscape, customers expect more than just discounts – they want meaningful, personalised experiences. Restaurant loyalty programs have become a cornerstone for bridging these connections, with research revealing that 95% of Australians are already members of at least one loyalty program.

When restaurants move beyond siloed customer data and embrace data collaboration, they can unlock deeper insights, personalise experiences at scale, and drive stronger customer loyalty.

Why first-party data is just the beginning

First-party data – information that customers share directly with a business through interactions, purchases, and engagement – lays the foundation for personalisation. When harnessed effectively, it allows restaurants to:

• Personalise rewards and communication: By tracking information such as order history, visit frequency, and menu preferences, restaurants can deliver targeted offers that feel relevant and timely.

• Optimise program design: Analytics can guide how loyalty tiers, rewards, and benefits are shaped to meet customer expectations.  

• Pinpoint loyalty drivers: Understanding what keeps customers coming back – such as exclusive deals or consistent product quality – helps refine strategies.

A 2025 Antavo Global Customer Loyalty Report highlights this trend, with 82% of loyalty program owners believing that reward customisation positively impacts customer engagement.

But to truly unlock the power of these data insights, restaurants need to look beyond their own systems.

The power of data collaboration

First-party data gives companies a strong foundation for data collaboration: collaborating outside of their own walls, with other companies in the ecosystem, to create a richer, unified view of each customer. By securely collaborating first-party data with other sources – such as social platforms, or brands holding a different set of touchpoints and consumer data – restaurants can better understand their customers and how to reach them.

Collaborating with partners not only increases efficiency, but also opens a whole new world of opportunities for personalization and growth. By collaborating to expand the data that restaurants can analyse, they can make smarter data-driven decisions, as well as work with partners to enhance segmentation and measurement – such as attribution – leading to better insights into performance, and ultimately, better-performing marketing investments.

Three business benefits of data-driven loyalty

1. Improved customer retention – McKinsey & Company found that personalised loyalty programs improve satisfaction and engagement by up to 30%. When customers feel recognised, they’re far more likely to return – especially in a crowded, cost-conscious market.

2. Increased order size and spending - Loyal customers spend more – 81% of millennials say that joining a loyalty program increased their spending with that brand. Personalised incentives, exclusive deals, and relevant reminders encourage bigger orders and more frequent visits.

3. Deeper customer insights - The more touchpoints you integrate, the clearer the picture of your customer becomes. Loyalty programs can surface actionable insights that influence menu design, operational efficiency, and marketing strategies.

Is your loyalty program earning real loyalty?

In a crowded, cost-conscious market, restaurant loyalty programs need to offer more than just discounts – they must deliver personalisation that feels relevant and rewarding. Achieving this requires moving beyond siloed data and embracing first-party data, as well as secure, scalable data collaboration.

By connecting insights across platforms and partners, restaurants can better understand and engage their customers at every touchpoint. With solutions like LiveRamp enabling this level of integration, brands can unlock smarter targeting, strong retention, and consumer loyalty that truly lasts.