The Loyalty Program: A Recipe for Success

  • View
    26.161

  • Download
    1

Embed Size (px)

DESCRIPTION

Visit www.restaurant.org/show for more information regarding NRA Show 2008.

Text of The Loyalty Program: A Recipe for Success

  • 1.The Loyalty Program: A Recipe for Success Stuart Kiefer Vice President, Loyalty Solutions First Data Corporation

2. What were going to talk about today

  • Market/Business/Practices/Innovations/Programs

3.

  • Loyalty programs help you betterunderstandcustomerpreferencesandspending habits , while monitoring, reinforcing and rewarding desired behaviors.

4. The loyalty market today

  • The Loyalty Program: A Recipe for Success

5. Loyalty memberships are growing

  • 1.3 billion loyalty memberships in the United States in 2006

Source: Colloquy talk Censustalk April 2007, pp. 3-6 2000 973 million 2006 1,139 million 6. Loyalty memberships are growing

  • 85%households participate in at least one reward program*
  • 12 loyalty programs per household on average**
  • 40% participation in active loyalty programs**

Sources: * Loyalty & Rewards: A Market Overview , Aite Group, January 2007 ** Colloquy talk Censustalk , April 2007, pp. 3-6 7. Restaurant loyalty is a sliver of the pie Source: Colloquy talk Censustalk April 2007, pp. 3-6 8. Loyalty is growing in many industries Source: Colloquy talk Censustalk April 2007, pp. 3-6 9. Loyalty isgrowingin many different verticals so you arecompetingfor share of customer mindacross all verticals . 10. How a loyalty program helps your business

  • The Loyalty Program: A Recipe for Success

11. Loyalty programs

  • move you beyond transactions, enabling you tomonitor ,reinforceandrewardconsumer behavior.
  • help you build programcampaignsandpromotionsthatresonatewith each customer.
  • helpincrease revenuepotential by building customer relationships throughtargeted ,valuableandrelevantpromotions and rewards.

12. Loyalty programs

  • provide areturn on the capital investmentof your POS system.
  • buildvisibilityandadvocacyfor your brand.
  • differentiateyou from your competition.

13. Where do your loyalty needs fall?

  • Electronicpunch card

14. Where do your loyalty needs fall?

  • Single promotion
  • Single message at POS

15. Where do your loyalty needs fall?

  • Multiple targeted promotions
  • Product specific offers
  • Customized, multi-channelmessaging
  • Web site registration

16. Where do your loyalty needs fall?

  • Multi-purse, targeted promotions
  • Analytics/modeling
  • Segmentation
  • Customized messaging
  • Additional Web site data capture
  • Payment-enabled phone
  • Tied to gift card

17. Loyalty helps grow your business Increased Revenue Retain Customers Target Marketing Comms. Increase Spend & Frequency Build Brand Loyalty Build Customer Relationship Differentiate vs. Competition Acquire New Customers Gain Customer Insight 18. Increase

  • visits per customer
  • spend per visit
  • number of purchases

19. Growth

  • in the number of loyalty members
  • in the number of new customers

20. Lift

  • product specific sales
  • sales during slow periods

21.

  • Following loyalty best practices can help delivermore than 15% in annual improvementin return on gross revenues, customer retention rates and marketing investment.

Source: Clark, Robin and Clark, Peter.The Loyalty Guide , The Wise Marketer, Wise Research 2006, p. 26 22. Value to customers Effective & relevant offersRecognition as a valued customerPerceived value of membership Immediate gratification Ongoing communication 23. Best practices in loyalty

  • The Loyalty Program: A Recipe for Success

24. Five key elements for success

  • Target your offerings
  • Offer the right mix of rewards
  • Understand your customers
  • Communicate effectively
  • Measure the results

25. Loyalty program offers

    • Recency, frequency, monetary, day part, points

Velocity programs

    • POS receipt, e-mail/SMS, Web site

Messaging programs

    • SKU-based

Product-based programs

    • Exclusive campaigns

Special promotions 26. Best practice:Member engagement

  • Increase customer frequency
  • Retain existing customers
  • Attract new customers

27. Best practice:Program goals

  • Establish defined program objectives and metrics to measure success
  • Make the program part of the corporate strategy
  • Give front line employees the skills to perform they are your program advocates

28. Best practice:Loyalty program

  • Loyalty program rules should be easy to understand
  • Always be relevant understand how your customers define value

29. Best practice:Customer knowledge

  • Treat different customers differently: deliver value the way customers want it delivered
  • Understand the needs of your target audience, then deliver simple, effective offers
  • Pay attention to your most profitable customers but dont neglect the rest

30. Best practice:Effective communication

  • Be responsive to your customers; let them tell you what they want
  • Know what is or isnt working, change as needed
  • Use multiple touch-points e-mail, Web site, etc.
  • Provide relevant and concise follow-up communication

31. Best practice:Data analysis

  • Creating value and loyalty success depends on how effectively customer data is managed and implemented.
  • There is intelligence in every transaction.

32. Innovations in loyalty programs

  • The Loyalty Program: A Recipe for Success

33. Innovations in restaurant loyalty Form Factors Payment Customer Service Employees Supply Chain 34. Innovation in form factors

  • Technology can enable real-time rewards, offers and messaging
  • More convenient forms like contactless Go-Tags can increase visits

35. Innovation in payments

  • Tie your loyalty program to multiple forms of payment
  • Credit/debit, prepaid cards, ACH

36. Innovation in customer service

  • Use data from loyalty program to drive excellent service
  • Tie in customer service with your loyalty program

37. Innovation in employee programs

  • Rewards programs are not just for your customers
  • Increase acquisition and retention
  • Deepen relationships with employees
  • Increase customer value
  • Reduce costs

38. Innovation in the supply chain

  • Increase opportunities for inventory management
  • Understanding customer purchasing behavior helps you make decisions that can reduce inventory costs
  • Reward and manage SKUs better

39. Components of an industry-leading loyalty program

  • The Loyalty Program: A Recipe for Success

40. Industry-leading solutions Real-time Tender-neutralAny loyalty identifierTargeted comm. CRM Targeted offers & rewards All program types Flexible reporting Web-based pgm mgmt Back office capability 41. Case Study:Compass Group Zipthru Rewards

  • The Loyalty Program: A Recipe for Success

42. Zipthru Rewards innovations

  • Technology:Contactless key fob tapped at POS
  • Real-time:Receipt is printed with total points or a coupon
  • Program types:Time of day and frequency rules
  • Rewards:free meals, discounts, event tickets
  • Communications:Promo and reward notifications by e-mail
  • Web site:View account balance, points earned and rewards redeemed

43. Zipthru Rewards transactions

  • 75,000loyalty transactions
  • 3,000loyalty redemptions
  • 2+visits per day on average

44. Zipthru Rewards results so far

  • 82% all day participation
  • 29% higher average check than all day average
  • 26% caf transactions from loyalty rewards
  • 34% caf revenues from loyalty transactions

45. Wrapping up

  • The Loyalty Program: A Recipe for Success

46. Five key elements for success

  • Target your offerings
  • Offer the right mix of rewards
  • Understand your customers
  • Communicate effectively
  • Measure the results

47.

  • Loyalty programs help you betterunderstandcustomerpreferencesandspending habits , while monitoring, reinforcing and rewarding desired behaviors.

48.

  • Innovative loyalty programs are tied in topayment ,marketing , customerservices ,supply chainandemployees .

49.

  • There is anopportunityfor restaurants to developprofitable loyalty programs .

50. The Loyalty Program: A Recipe for Succes