The restaurant industry has seen its fair share of tactics and strategies meant to inspire loyalty. Punch cards, BOGOs and coupons given out to everyone were meant to draw customers into their locations rather than those of competitors. Yet, as time passed, and sales stagnated or declined, it became apparent that these strategies weren’t actually motivating customers to increase their order size or frequency of visits. So what’s holding restaurants back from greater loyalty? Keep reading to find out.
The advent of mobile payment technology has sparked a digital revolution in the restaurant industry. While some companies have embraced this to create more engaging and personalized customer experiences, others have become stuck in the old-school ways of points and punch cards. Starbucks is a perfect example of a brand leveraging their mobile technology and data to improve how they interact with customers, rewarding them for purchases with stars, in-app offers and even free drinks on their birthday. However, other large coffee shops are frozen in the past, giving out free cups of joe as long as the customer has previously purchased nine. This doesn’t incentivize savvy consumers anymore, and the company is simply giving away free product. In order to compete with some of the world’s most innovative brands there needs to be a change in strategy. To help, we put together three different ways quick service restaurants can maximize their mobile order data to improve the customer experience -- dig in!
Restaurant chains strive to drive loyalty and retention in the hopes of turning one-time customers into repeat guests. This is something restaurants know they need to do -- it’s how to do it that poses a problem. Based on hundreds of conversations with restaurant brands, there are a few common challenges we’ve heard repeatedly. These are the roadblocks preventing chains from providing the type of experience that their guests long for and is required in order to stand out from competitors. In this blog post, we’re taking a closer look at those challenges and some ‘how-tos’ to reactivate the last guest.
Here’s a story, and it will probably sound familiar. There's a quick service restaurant chain. Let's say they have around 500 locations, give or take, and about $1 billion in annual revenue. They have an app and a loyalty program that have been around for awhile. The loyalty program has a pretty solid member-base of 5-10 million, but only about 30% of members are active.
According to a recent report from Russell Reynolds Associates, the turnover trend experienced by retail a year ago has spread to the Quick Service Restaurant category. 35% of CMOs have turned over at the top 20 QSRs in the last 6 months.