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6/6/22 1 Reward your Reward Your Customer s Restaurant! How Loyalty Programs Are Making An Impact

Reward Your Customers - Reward Your Restaurant

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Fast casual and full-service restaurant operators are utilizing loyalty programs to entice customers to dine more frequently and spend more each visit. With countless loyalty success stories it’s no surprise that loyalty programs are one of the industry’s marketing trends in 2014. In this 30 minute webinar, we’ll discuss why loyalty programs work and share an inside view of successful programs in restaurants just like yours. We’ll also review the key components of a successful loyalty program and tips for getting started with a custom loyalty program for 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

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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

[email protected]