Getting to Know Your Customers
Presented by Robert Byrne
05/19/2019
Getting to Know Your Customers
• Navigating the modern
diner• Mixed messages
• Exploring drivers of
visitation• The silent majority
• Behavioral data meets
guest experience• Smashburger case study
Navigating The Modern DinerWhat is signal and what is noise?
Consumers Send Us Mixed Messages
34%“Tech-enabled ordering is important when selecting a limited-service restaurant”
52%Two-year growth of online orders at limited service restaurants
Interest in Gluten-Free Items
Gluten-free21%
Willing to pay more
27%Not willing to pay more
51%Not a factor
How do these attributes affect your food and beverage purchasing decision at restaurants or grocery stores?Base: 1,500 consumers 18+Source: Technomic Healthy Eating Consumer Trend Report
Contradictory Consumer?
Gluten-free21%
Willing to pay more
27%Not willing to pay more
51%Not a factor in purchase
How do these attributes affect your food and beverage purchasing decision at restaurants or grocery stores?Base: 1,500 consumers 18+Source: Technomic Healthy Eating Consumer Trend Report
Is Vegan On-Trend?
Gluten-free21%
Willing to pay more
27%Not willing to pay more
51%Not a factor in purchase
Vegan20%
Willing to pay more
23%Not willing to pay more
57%Not a factor in purchase
How do these attributes affect your food and beverage purchasing decision at restaurants or grocery stores?Base: 1,500 consumers 18+Source: Technomic Healthy Eating Consumer Trend Report
Appeal of Plant-Based Items?
Gluten-free21%
Willing to pay more
27%Not willing to pay more
51%Not a factor in purchase
Vegan20%
Willing to pay more
23%Not willing to pay more
57%Not a factor in purchase
Plant-based27%
Willing to pay more
31%Not willing to pay more
42%Not a factor in purchase
How do these attributes affect your food and beverage purchasing decision at restaurants or grocery stores?Base: 1,500 consumers 18+Source: Technomic Healthy Eating Consumer Trend Report
Exploring Drivers of VisitationThe invisible guest may be the majority
What Makes You Top-of-Mind?
15%
16%
32%
45%
49%
Others wanted to go there
Has favoritefood/beverages
Craving an item, flavor, etc.
Near my home
A usual go-to location
What made you think of this restaurant?
Base: 1,000 consumers 18+Source: Technomic Ignite Consumer Survey
Base: 106,427 recent guests at a chain trackedSource: Technomic Ignite Consumer
I chose this restaurant to
satisfy a craving
35%
Base: 106,427 recent guests at a chain trackedSource: Technomic Ignite Consumer
36%44%Intent to return among recent
guests that came to satisfy a craving
Intent to return among recent guests that came for all other need states
We Often Hear…“We get all our insights from our loyalty program”
We Often Hear…“We get all our insights from our loyalty program”
80%Do not belong to a loyalty program
Consumer average across restaurant segmentsBase: 1,000 consumers 18+Source: Technomic Ignite Consumer ad hoc survey
RestaurantVisit FrequencyTop U.S. chains
More than once a month
14%
Less than once a month
71%
Once per month15%
Base: 106,427 recent guests at a chain trackedSource: Technomic Ignite Consumer
According to Starbucks…60 million guests visit their stores each week
16.3 million active loyalty program members
What About the Majority of My Guests?What can they teach me, and how can I use it? Less than
once a month71%
Once per month15%
Base: 106,427 recent guests at a chain trackedSource: Technomic Ignite Consumer
Less frequent guests = significant opportunity
Behavioral Data Meets Guest ExperienceA Smashburger Case Study
Sales and Traffic
7.4
0.4 -0.4
1.6
-4.0-6.2
-9.6
-8.7
-9.2 -9.7
-11.6-13.4
11.8
2.1 2.2
-3.2
-8.2 -8.1
-10.8
-8.2
-10.1-11.6
-10.2 -9.6
Q116
Q216
Q316
Q416
Q117
Q217
Q317
Q417
Q118
Q218
Q318
Q418
Smashburger Sales & Traffic(vs same quarter prior year)
Traffic Chg Sales Chg
Financial metrics reflect positive and negative changes to health of business
Source: Technomic Transaction Insights
Guest Experience Tracking 57%
54%
49% 50%
50%48% 47%
49%
2016 2017 2018 2019 (YTD)
Excellent Overall Visit Satisfaction(top-box rating)
Smashburger Burger Chain Avg
Critical measures derived by voice of customer provide the why behind the move
Base: 700 recent guests per chain tracked per periodSource: Technomic Ignite Consumer
Putting It All Together
Track changes in
ratingsUse change in top-box
scores from same period one year ago to match
sales and traffic measures
Remove the frequent visitors
Strip out affinity bias by looking only at consumers that are light users of your
brand
Shift calendar to
predictRatings changes from Q1
2018 are compared to sales and traffic changes
in Q3 2018
Charting Sales Correlations 11.8
2.1 2.2
-3.2
-8.2 -8.1
-10.8-8.2
-10.1-11.6
-10.2 -9.6
Q116
Q216
Q316
Q416
Q117
Q217
Q317
Q417
Q118
Q218
Q318
Q418
Smashburger Sales(vs same quarter prior year)
Traffic Chg Sales Chg
Pattern of continued quarterly decline noted
Source: Technomic Transaction Insights
Establishing The Data Connection
2.4
11.8
8.8
2.2-0.4
-6.4-3.7
-0.2 -0.2
-3.5
-8.1
-2.4
11.8
2.1 2.2
-3.2
-8.2 -8.1-10.8
-8.2-10.1
-11.6-10.2 -9.6
Q116
Q216
Q316
Q416
Q117
Q217
Q317
Q417
Q118
Q218
Q318
Q418
Sales + Attribute Change(vs same quarter prior year)
"Welcoming Atmosphere" Sales Chg
Smashburger sales decline pattern correlated to decline in attribute rating
.68 correlation coefficient
Base: 700 recent guests per chain tracked per periodSource: Technomic Ignite ConsumerSales Source: Technomic Transaction Insights
Charting Traffic Correlations
0.9
4.12.9
4.83.0
-4.5 1.2 1.02.7 1.9
-8.4
-11.8
7.4
0.4 -0.41.6
-4.0-6.2
-9.6 -8.7 -9.2 -9.7-11.6
-13.4
Q116
Q216
Q316
Q416
Q117
Q217
Q317
Q417
Q118
Q218
Q318
Q418
Traffic + Attribute Change(vs same quarter prior year)
"Kid-Friendly" Traffic Chg
Smashburger traffic decline pattern correlated to decline in “kid friendliness”
.59 correlation coefficient
Base: 700 recent guests per chain tracked per periodSource: Technomic Ignite ConsumerSales Source: Technomic Transaction Insights
Highly Correlated Metrics
Based on voice of less frequent guests, ambiancecorrelates strongly to Smashburger performance
Base: 700 recent guests per chain tracked per periodSource: Technomic Ignite ConsumerSales Source: Technomic Transaction Insights
Guest Experience
Measure
Smashburger
Sales Correlation
Smashburger
Traffic Correlation
A welcoming,
comfortable
atmosphere.68 .66
Clean restaurant
interior.65 .63
Provides value through
quick, high-quality
service.65 .60
Portion size for price
paid.62 .69
Decor .62 .67
What Might Smashburger Do?
Divide guests into discrete
groups based on frequency
Assess size and financial impact
of guest populations
Correlate guest experience measures
against populations separately
Broadly communicate
changes/ strengths in critical areas
Allow output to help prioritize
initiatives
Thank you!
Behavioral data provides
the what
Only consumer data can
reveal the why
Blended analysis
needed to know your customer
Robert Byrne
Sr. Manager, Consumer Insights