As meals costs proceed to climb so does the worth of a restaurant loyalty program, for each the shopper and the model.
In itemizing out frequent dominators amongst restaurant manufacturers, one of many first to pop to thoughts could be creating and sustaining a loyal buyer.
That is as a result of loyal clients are gold for a model on the subject of income and free advertising and marketing.
However constructing a loyal fan base, and rising that fan base, requires each technique and the flexibility to adapt, be versatile, and, most significantly, perceive a buyer’s wants and needs.
The loyalty program technique, in addition to what has confirmed profitable, was the subject of a panel discuss, “Constructing an Urge for food for Loyalty,” on the Quick Informal Government Summit held final month in Indianapolis, Indiana. It is one in every of a number of trade occasions organized by Networld Media Group, the dad or mum firm of Fastcasual, Pizza Market and QSRweb.
The annual three-day Quick Informal Government Summit occasion attracts executives from main manufacturers all over the world. The media firm’s subsequent occasion is the Restaurant Franchising & Innovation Summit being held March 20-23, 2023, in Coral Gables, Florida.
Taking part within the panel, sponsored by Vericast, and moderated by Cherryh Cansler, VP of occasions and editor of Fastcasual.com for Networld Media Group, had been Rob Crews, restaurant trade technique director for brand spanking new enterprise and account administration, restaurant manufacturers at Vericast; Jeff Hemschoot, VP of selling at Jersey Mike’s franchise programs and Doug Willmarth, president at Mooyah Burgers, Fries & Shakes.
The loyalty technique
“Once we discuss loyalty it is about driving frequency and transferring clients alongside that frequency continuum,” mentioned Crews, kicking off the one-hour dialogue.
“In beginning one in every of these do not attempt to boil the ocean. Simply sort of get going. You do not have to get it proper off the bat,” he suggested, including that manufacturers ought to begin with one thing however understand how they wish to set it up (loyalty factors or shock and delight choices). “Bounce in, small take a look at, there may be a variety of take a look at and study.”
At Jersey Mike’s, as we speak’s loyalty program and technique are fairly completely different than it was 14 years in the past when clients held punch playing cards on the register. Hemschoot, who’s been in his advertising and marketing function since 2008 when the sandwich model had between 230 to 240 places, has seen large development round loyalty and describes increase the loyalty program “as thrilling and experience.”
The model, which now has 2,300 shops, launched its preliminary loyalty app in 2012 with a quite simple method because it was all factors primarily based.
The app was home made, as was the POS it built-in with, because the model is bullish on funding spending.
“One thing I will in all probability say 5 occasions as we speak — maintain every part so simple as attainable. On the finish of day all we wish is for the buyer to shortly order and connect loyalty to that and drive that frequency and incremental visits,” mentioned Hemschoot.
Six years later the app was up to date and, simply as COVID-19 hit, it was enhanced in early 2020 to offer supply service functionality.
“So we had been poised and caught some little bit of luck alongside the best way,” mentioned Hemschoot.
The model’s app has 22 million app downloads and 24 million subscribers to its factors account.
“It is a testomony to our crew members and our homeowners,” he added.
At Mooyah Burgers the loyalty technique is a bit completely different given the model’s smaller dimension, defined Willmarth, who’s been in his function for a couple of yr.
“As a smaller model it is vital to leverage confirmed out-of-the-box know-how and be sure to have companions which have a extremely sturdy platform you’ll be able to faucet into as a result of we do not have a workforce of six to seven to customise and implement,” mentioned Willmarth.
The model leverages Punchh know-how which plugs into the POS that was additionally developed internally.
“The communication element may be very crucial,” mentioned Willmarth. “With a loyalty program it’s a must to give folks a motive (to hitch) and ours relies on tried-and-true legacy choice of earn factors and get money and we’re within the technique of attempting to rethink that so we’re at an fascinating time in our program.”
Driving loyalty app downloads
Launching a loyalty app, nevertheless, is simply the primary vital step. An app, in spite of everything, has no worth if nobody is utilizing it so the technique should embody a profitable method to get clients engaged and changing into an app consumer.
At Jersey Mike’s the technique is multi-pronged. The model does fairly a bit of selling by way of its digital belongings and communicates to company by way of textual content and e-mail blasts.
“We use all these channels to proceed to push downloads and any sort of occasion advertising and marketing — something exterior of TV [such as] fundraising — something the place we are able to inform clients there may be a straightforward solution to obtain,” mentioned Hemschoot.
“We do crew incentive packages as effectively and that engages the crew and so they’re excited by it. There are not any money prizes however model merch, headphones, gear.”
One beneficial factor within the model’s loyalty method is its factors incentive and that is why its app advertising and marketing contains providing double factors, possibly as soon as a month.
“Like clockwork, we see 15% enhance in gross sales the following day [after the monthly double points offer]. Now we have a quite simple technique that the shopper understands,” mentioned Hemschoot.
At Mooyah Burger’s the method to driving loyalty app downloads is tied to the way it views its loyalty program total.
“The app is a crucial a part of the loyalty program however the loyalty program just isn’t the app. What we’re trying to do is interact with folks the place they’re to deepen the connection and it really works for us,” mentioned Willmarth.
“We attempt to have a devoted occasions of yr the place we’re targeted on [app] acquisition corresponding to client dealing with contests — like free fries for downloading the app after which having a companion program that runs contest for the shops and workforce members, in order that they have an opportunity to win one thing too,” mentioned Willmarth.
He used an analogy of a human relationship to explain his model’s loyalty app and buyer relationship.
“Acquisition, the place the only real message is ‘hey would you prefer to obtain our app,’ is form of like leaping straight to ‘hey we’re in a relationship’ earlier than we have had our first date. We method loyalty on two ranges, workforce member loyalty and buyer loyalty, and that is crucial as crew member retention is so vital proper now.”
The shock and delight loyalty method
Many manufacturers undertake a standard factor within the loyalty technique — informally coined as “shock and delight,” wherein this system gives up one thing unexpectedly within the quest to drive deeper loyalty and engagement and spur the shopper to share the shock/delight with family and friends and colleagues.
The “shock and delight” at Jersey Mike’s is not an enormous technique at this level, mentioned Hemschoot, although the model does a double factors day.
“Past that a few of the different issues that we do is a tailgate tour the place we went to 14 faculties all through soccer season with a makeshift retailer, enjoyable actions, quiz video games,” he mentioned, including “we’ll be trying to some completely different gamification issues that is shut as we get to any sort of shock and delight.”
For Mooyah Burgers the shock/delight facet can also be not entrance and heart and is considered extra as a layer so as to add onto a loyalty program, mentioned Willmarth.
“I believe it is as a result of we’re utilizing loyalty at first as a communication platform and I believe that’s one thing it’s essential to be enthusiastic about. In loyalty, your clients are supplying you with permission to speak to them about issues which can be vital to you, and it turns into your least expensive solution to get significant information out to your finest clients.”
Providing double factors or free fries or the chance to win one thing are points to be layered onto the loyalty program, Willmarth mentioned.
“We’re attempting to be extra of a quality-based experiential model so a few of the issues we now have tried to tie into the app are extra of issues within the experiential space,” he mentioned, noting the model’s declaration of nationwide French fry month and providing as soon as in a lifetime expertise corresponding to staying on the Idaho Potato fee potato resort.
“Individuals cherished it. It is an instance of how we’re utilizing the platform to get model info on the market to folks we all know and who like us,” he mentioned.
“If you do not have a loyalty program as we speak it’s a must to decide what are your targets for this system and the way are you going to attain ROI as a result of it’ll be a dedication. As soon as you have rolled out a loyalty program, they’re very tough to roll again. You really want to be sure to’ve obtained eyes large open on what it’s essential to see, what do it’s essential to guarantee this might be funding.”
Judy Mottl is editor of Retail Buyer Expertise and Meals Truck Operator. She has many years of expertise as a reporter, author and editor protecting know-how and enterprise for prime media together with AOL, InformationWeek and InternetNews.
