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A Balance Grille success story: how customer experience innovation led to consistently higher visit frequency and revenuegrowth
Balance Grille Case Study
About Balance Grille Case Study
The Balance Grille Case Study won the award in the “Technology & Trends” category at 2018 Loyalty360 Awards in Orlando, Florida
Loyalty360 is the unbiased, objective, and market-driven association for customer loyalty, which seeks to enable and encourage dialogue among industry leaders.
Prakash KaramchandaniCo-Founder of Balance Grille
About Balance Grille
Fast Casual Asian-Fusion Restaurant 5th in Fast Casual TOP 100 Movers & Shakers list 2018
Balance Grille key focuses:
● Fresh, customizable, and clean dining
● Bringing a modern view to Asian cuisine
● Constantly innovating around customer
experience
Main challenge
How do we meet the demands of an evolving customer landscape and sustain strong growth in our business, all while staying true to our passion for high-quality, natural, and authentic cuisine?
How did we face the challenge?
72% of businesses say improving customer experience is their top priority
We started by developing a deep understanding of industry trends and our key customer demographic...
Insights gathered led to our main thesis
Launch a powerful mobile app with a full-scale customer experience that meets millennial demand in order to drive an increase in visit frequency, sales, and average check size
63% of marketers prioritize implementing technology investments that will help them reach this goal
Millennials, the smartphone generation, drive the market. By the year 2020, Millennials are predicted
to spend an incredible $1.4 trillion annually
How did we face the challenge? Our past experience: the 1st attempt
Starting point: the templated digital ordering app
Disadvantages: ● Only digital ordering ● Lacking in content and thus customer
connection (no social or viral mechanics = low penetration)
● Limited design customization● Limited functionality● No POS-integration, low speed of service
The result: We realized that digital ordering itself is just one piece of the puzzle and doesn’t provide real customer engagement
Starting point: the white-label app offered by our point-of-sale provider
Disadvantages:● No expertise in app development;
no proven track record → high risks● Major upfront investment, and
unpredictable ongoing costs
The result: high-cost project without tangible results; poorly organized execution; we never launched
How did we face the challenge? Our past experience: the 2nd attempt
Not much to show here because we never ended up launching it...
All-in-one mobile loyalty & ordering solution with constantly evolving features & modules and seamless POS integration
The idea of the perfect mobile solutionconsidering past mistakes
Partnership with a company that:
● provides expert guidance, marketing, and technical support
● is focused on business KPI improvement and has proven results
An app focused on emotional engagement, with an outstanding UX and personalization options
The all-in-one mobile app solution 3rd time's a charm!
White-labeled mobile appand CRM-system
1. Customer Success Manager2.
Technical Support 24/73.
Plenty of progressive features:4.
● Mobile bonus loyalty program
● Mobile ordering
● Customer behavioral analytics
● Referral program and social media promotion
● Mobile automation tools
● Targeted marketing campaigns
● Quality control system
steps to success9
Results achieved in the first 18 months
Less than 3%
Pickup orders
Pickup sales67%
Launching a cost-efficient sales channel through the mobile app
as % of all sales through the mobile app
32%
as % of all orders
Loyalty program expenseas % of total revenue
1
Creating high customer engagement with a bonus loyalty program2
Every 3rd customeruses the app
Active users
Sales penetration45%
share of sales connected to the mobile app
62%
% of app users who use the app every month
and receives personalizes app communication
~70
755
Increasing brand awarenesssocial media buzz about the app3
views
App recommendationsby loyal customers on social media over 18 months
of each recommendation post on social media
50,000+ Impressions from personalized recommendations
Converting social media marketing to in-store traffic
Susan HollandMarch 20
Have you been to Balance yet? Try a Bubble Tea for free by downloading their app!
24
4
+2.4%
New customers
App installations9+
from each recommendation
5+
from each recommendation
Average monthly revenuefrom referral program
Average monthly revenue
37%
share of customers who made an order thanks to campaign
Building personalized communicationwith targeted marketing campaigns
The Buy-one, Get-one campaign targeted at regular customers to increase their visit frequency
5
Conversion rate
Open rate79%
share of customers who opened the app to find out more
+2.1%
generated through the campaign focused on foot traffic increase
Conversion rate
Average monthly revenue
21%
share of customers who made an order thanks to campaign
Right time & place communicationwith marketing automation tools
Automated Birthday Greetings campaign
6
Open rate62%
share of customers who opened the app to find out more
+2.8%
generated through birthday greetings campaign
x 1.5 An average check increaseduring birthday greeting campaign
Conversion rate
Average monthly revenue
35%
returned customers who came back and made an order thanks to campaign
Retaining lapsed customer with Win-Back campaigns
Win-Back lost customers campaign targeted to lapsed customers to bring them back:
7
Open rate53%
share of customers who opened the app to find out more
+3.7%
generated through the campaign
Promoting new Balance Grille location:
Location open date: Thursday, May 10App users receive an official invite withQR code to access to an Early Invite Poll before the opening day.
New location and app promotion at the same time:
> 300 requests via the app during the promotion
28% conversion share of app users who showed up to the event into all users invited
8 Creating exclusive customer experiences with in-app news & offers
4+Detailed reviews per location a day +0.9% Monthly revenue
from retained customers
I’m angry! Want to speak up!
Standard flow
Unsatisfied customer left negative review on public web site
Will never go there again!
Balance Grille flow
Balance Grille manager got customer’s review in CRM-system
and sent push-message with compliment points
Wow, they actually care about me and made
some improvements! So cool!
9 Building a dialog with customers through a quality control system
Business results
Business results: users love us and our app
85%The balance grille mobile app NPS*
*NPS — key customer loyalty metric that reflects willing of customers to recommend the brand to their friends
According to an online survey of 750 guests
33%
Business results: converting occasional guests to regular guests
Heavy users (regular guests)3+ visits per month
Light users (occasional guests)1 visit per month75%
50%
25%
We were analyzing changing visit frequency by dividing all app users into 3 groups: Heavy users (3+ visits/month), Medium users (2 visits/month), Light users (1 visit/month). The chart below shows that the number of Heavy users is increasing while the number of Light users is decreasing. This is an excellent demonstration of the app’s effectiveness in creating true loyalty.
1st month
2nd 3rd 4th 5th1st month
2nd 3rd 4th 5th
75%
50%
25%
Share of customers who said they visit Balance Grille more because of the appAccording to an online survey of 750 guests
15% Heavy users share increaseThe share of guests who visit the restaurant 3+ times a month
Business results:average visit frequency increaseand average check growth
Year-over-Year average visit frequency increase per user
+43%Average visit frequency dynamics for app users (April 2017 - April 2018)
Average check growth
+17%
The average app user spends on average 17% more than a non-user
Business results: revenue growth
Comparison of revenue before and after mobile app launch
Revenue dynamics during 2017 (after mobile app launch)
Revenue dynamics during 2016 (before mobile app launch)
$
7%+Average YoYrevenue growth
Mobile project ROI per locationROI for Mobile app pilot project for was calculated after first 18 months after pilot launch using this formula:
Profit:Incremental marginal profit:
Investment:License fees and rewards (total):
ROI: 133.5%
$30,834 + $143,983
For 1 Balance Grille location:
ROI = ((Incremental marginal profit) - (License fees and COGS)) / (License fees and rewards)
Our happy customers and their feedback
Get in touch
Prakash Karamchandanico-Founder of Balance Grille
Email: [email protected]
Mobile apps that mean business
tel: +1 (347) 943-6134Email: [email protected]
106 West 32nd St, 2nd Fl, office 113, New York, NY 10001
loyaltyplant.com
Ask for references
