Date post: | 13-Sep-2014 |
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Business |
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Rewardyour
Reward YourCustomersRestaurant!
How Loyalty Programs Are Making An Impact
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QuickAIntroduction
Fred Dilkes
Restaurant Experts
Point-of-Sale
Online Ordering
Mobile & Kiosk
Business Intelligence
Customer Loyalty
1/24/2014 3
QuickAIntroduction
Fred Dilkes
Restaurant Experts
Point-of-Sale
Online Ordering
Mobile & Kiosk
Business Intelligence
Customer Loyalty
1/24/2014 4
QuickAIntroduction
Fred Dilkes
Restaurant Experts
Point-of-Sale
Online Ordering
Mobile & Kiosk
Business Intelligence
Customer Loyalty
Your “One Throat To Choke”
Tech Provider
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Loyalty:A feeling of devoted
attachment and affection
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The LifetimeValue OfOne Customer To Your Neighborhood Pizza Joint?
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$25,000-says Forbes Magazine
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REPEAT CUSTOMERS =
70% OF SALES @ MOST
CASUAL DINING RESTAURANTS
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Expansion of Restaurant Loyalty Programs: Have One
41%
Planning One47%
None12%
Restaurants SurveyedNRA 2010
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Restaurant Owners say their loyalty program gives them a
Competitive Advantage
out of
109Why Loyalty?
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Of Consumers Say A Loyalty Program is IMPORTANT in their buying decisions-AC Neilsen
60%
Why Loyalty?
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Consumers spend
46%
More, on average, with companies that have loyalty programs
Source: Total Research Corp & Custom Marketing Corp’s Loyalty Monitor Study
Why Loyalty?
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65%
Of consumers would RECOMMEND a restaurant more to others if it offered an appealing reward program.
Source: http://loyalogy.com/loyaltypulse-consumer-research-study-on-restaurant-loyaltyrewards-programs/
Why Loyalty?
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Identify Your Customers PersonallyIncrease customer frequencyTurn new customers into regularsLearn About Your CustomersGain Referrals
Loyalty Benefits:
Increase ticket averagesReduce indiscriminate discountsPrevent customer lossQuickly Drive Business At Any TimeSave time & money on marketing
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The ROI of
Loyalty
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Our Experience:• Helped hundreds of restaurants implement loyalty with our tool, SalesBuilder• Automates e-mail, direct mail & text communication based on customer behavior• Integrates with POS & Online to track spending & offer redemptions – or use our iPad app.
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Average E-mail club new members, per month, per location
Average Loyalty new members, per month, per location, over 8 months
Higher enrollments than e-mail club alone
ROI Examples
29
98
3.38x
Increase Enrollments
Case Study: 5 store pilot at a fast casual/delivery national pizza chain. Previously used a web-based e-mail only system. Switched to SalesBuilder with integrated POS sign ups & rewards.
A Large, active customer database can not only help your marketing program, it can add to your business valuation!
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ROI Examples
Higher ticket average for loyalty customers vs. non loyalty customers (even with loyalty discounts)
$2.14
Increased Ticket Averages
Case Study: 4 locations analyzed over a 3 month period, 4 order types compared.
Dine In To Go Pick Up Delivery
Loyalty Member (4 store ticket av.)
$12.23 $14.71 $25.17 $37.60
Non Loyalty Member (4 store ticket av.)
$8.83 $10.89 $24.50 $36.92
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30%
Chance that a 1st time customer will become a regular
Source: LoyaltyMagic
ROI Examples
67%
If they buy 3x quickly, that chance goes up to
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ROI Examples
Average # of NEW Loyalty customers who returned at least once after initial order (3 mo. period studied)
27%
12% Average # of NEW NON-loyalty customers
who returned at least once after initial order.
Turn New Customers into Regulars:
Case Study: 10 store fast casual/delivery pizza chain. We analyzed their POS records to see how many new customers are coming back.
The loyalty messages are really helping bring new customers back for another visit!
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ROI Examples
Average # of NEW Loyalty customers who returned at least TWICE after initial order.
14%
3% Average # of NEW NON-loyalty customers who
returned at least TWICE after initial order.
Turn New Customers into Regulars:
And in the same study …
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ROI Examples Turn New Customers into Regulars:
And in another, similar study of 4 locations, we looked at all the new customers in their POS database from January – May, 2013.
Ordered 2+ times Ordered 3+ times
Loyalty Customers 41% 22%
Non-Loyalty Customers 12% 4%
New customers who joined this loyalty program were over 5x more likely to order 3+ times than new customers who didn’t join!
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ROI Examples
Average transaction count of new Loyalty customers in first 60 days.1.63
1.09Average transaction count of new, non-loyalty
customers in first 60 days.
.54 Difference every 60 days . Loyalty ticket average of $29.91 = $96.90 added value per loyalty customer per year.
Increased Customer Frequency:
Case Study: 5 store fast casual/delivery pizza chain. We analyzed their POS records to see how frequently their customers are ordering.
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ROI Examples
Loyalty customers order, on average, once every 54 days.54
72Non loyalty customers order, on average,
once every 72 days.
Increased Customer Frequency:
Case Study: 5 store fast casual/delivery pizza chain. Another way to look at how often loyalty customers order
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With Just 1500 Reward Members, adding 100 per month:Adding Up the ROI:
$204
More New Customers
Converted to Regulars
$7812Loyalty Customers order 2.5x more
per year
$385
Loyalty Members Have Higher
Ticket Averages!
$750
Wasteful marketing $$
saved
Net ROI (after food cost & loyalty program cost) : $6632!
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“I Already Have An E-mail Program”
Loyalty Misconceptions
Your Loyalty Program:• Sends the right message to individual customers at the right time• Rewards customers for their loyalty• Helps reduce the blanked couponing / discounting in mass e-mails• Automates the process so you don’t have to think about it.
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“I Already Have A Punch Card System”
Loyalty Misconceptions
Your Loyalty Program:• Motivates customers to return by communicating with them.• Increases the value of your business because you have a customer database with detailed information.• Lets you reach out to your best customers at any time to stir up business.• Is easier for customers – no punch card to keep track of.
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“My Customers Don’t Want A Loyalty Card”
Loyalty Misconceptions
• You don’t need a card to have a loyalty program – phone # is fine.• 60% of consumers don’t mind carrying a loyalty card if needed.
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“I Don’t Want to Give Discounts To Loyal Customers”
Loyalty Misconceptions
Your Loyalty Program:• Lets you reduce blanket discounts across all marketing channels• Improves the security of discounts you offer• Loyalty customers retain higher ticket averages – even with discounts• Other, value-add rewards & perks are also powerful motivators
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Loyalty ProgramKeys to Success
• Enrollment• Communication• Rewards• Go Viral!
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Key #1: EnrollmentBe Clear About Benefits!
>What do I get now?>What do I get after enrolling?>What do I get long term?
80% Of Consumers find points for rewards more motivating than periodic free surprise items
http://loyalogy.com/loyaltypulse-consumer-research-study-on-restaurant-loyaltyrewards-programs/
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In-Store Publicity
• Signage at register• QR Code• Script your staff• Staff Incentives• Box Toppers
Key #1: Enrollment
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Text To Join
• Enroll with mobile• Option to reply with e-mail• Or receive via text
Join
Thanks for joining XYZ Rewards. Click Here
to activate!
83%Of texts are read within 1 hour. SMS is preferred communication method for under 25
Key #1: Enrollment
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High Tech Tablet . . .
Or Low Tech Fishbowl . . .
Key #1: Enrollment
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Featured on your website
Key #1: Enrollment
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And frequently on Facebook
Key #1: Enrollment
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Online Orders:
Integrate with your online ordering site.
Key #1: Enrollment
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Key #2: Communicate!
66%Of consumers wish to receive e-mails with offers of value relating to their restaurant rewards program
http://loyalogy.com/loyaltypulse-consumer-research-study-on-restaurant-loyaltyrewards-programs/
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Key #2: Communicate!Personalized Messages:
• Welcome• Birthday• Anniversary• After a transaction• Near A Reward• Earned A Reward• Haven’t Seen You• How’d We Do?• Refer Someone
General Messages: • Holidays• Sports Events• New Menu Items• New Service Offerings• Special Deals• Contests• Recipes• Community Involvement• Telling Your Story• Personalize with reward status!
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Key #2: Communicate!
Direct Mail? E-Mail?
Text?Social Media?
! Let Your Customer Choose Their Preferred Method of Communication!
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Key #3: Rewards
70%Of consumers would find an unexpected free appetizer as a benefit of a rewards program appealing
Would like to receive a special birthday reward72%
http://loyalogy.com/loyaltypulse-consumer-research-study-on-restaurant-loyaltyrewards-programs/
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Key #3: Rewards
How Often & How Much? • About 4-7 visits to earn• Average is 10% value ($5 after $50 spent)• $ off vs. Free Item• Purchase required?• Lifetime spend rewards• Change your rewards sometimes!
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Creative Reward Ideas:•Hold a grand prize drawing & award entries• Give “experiences” • Lunch for 2 @ school or the office• A Dinner A Month For A Year• In store Events• T-shirts, hats, logo items• Team up with partners• Post your prizes visibly!
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Key #3 Rewards:
Would like to move to the head of the line when its busy as a benefit of the rewards program.
54%
31%Would like to be able to donate their rewards to charity.
http://loyalogy.com/loyaltypulse-consumer-research-study-on-restaurant-loyaltyrewards-programs/
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Key #4: Go ViralSocial Media
Referrals
Advocates
Post transaction data & reward news on customer’s Facebook page to share with their friends & gain referrals
Affiliates
Bonus points for referrals, ongoing rewards based on your friend’s spending
Involve & reward community organizations for member referrals & spending. When I eat at your restaurant, my local PTA benefits!
Survey customers & give the best responders extra perks; invite their reviews on social sites.
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Getting StartedChoose A Loyalty Program Provider:
• Restaurant Experts• Give Customers A Choice – E-mail & Text in one program• Easy to capture transaction data• Automatic communications• Flexible reward triggers• Viral components – affiliates, social media, surveys
We Can Help!
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Building Blocks of
SuccessPoint-of-Sale
Online Ordering
Mobile & Kiosk
Business Intelligence
Customer Loyalty& Feedback
EasyIntegratedAffordable
Check Out Our All-Inclusive
Packages!
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Watch Your Email: Thank you gift
Slide Show
Take TheNext Step
Schedule A Personal Demo
www.granburyrs.com800-750-3947