Reward Your Customers - Reward Your Restaurant

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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

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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

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Questions?Fred Dilkes

fdilkes@granburyrs.com800.750.3947