In case you haven’t already heard, loyalty programs deliver outstanding financial returns to restaurants by motivating guests to visit more often and spend more on each visit. Simply put, if you want to maximize your restaurant’s revenue, you need loyalty.
However, when we talk about loyalty, we don’t mean the standard “buy five items, get one free” deal that comes along with a paper punch card. That was loyalty 1.0. Loyalty 2.0 delivers far greater ROI but is a more complex science. To be successful at it, you’ll need to address the following questions:
- Which program will best engage and compel your guests?
- What type of loyalty program aligns with your concept type and brand?
- What kind of program can your staff effectively execute?
- Which program will help you achieve your restaurant’s financial goals?
Most convenience stores share similar reasons for having a reward program – such as improving profitability and enticing customers to make incremental sales – but all reward programs are not created equal, and a one-size-fits-all approach may not produce the outcomes that retailers want.
During the webinar “Dos and Don’ts of Successful Reward Programs,” I discussed reward program practices that c-store retailers should adopt, as well as ones that they should be cautious of implementing.
Here are some of the dos and don’ts of successful reward programs: […]
The convenience store industry is going through a transformation where retailers are becoming competitors in the foodservice space, but there is still a lot that c-stores can learn from restaurants when it comes to customer engagement. By learning more about their customers and leveraging the data, c-stores can build loyalty and earn increased visits and spend from their customers.
How can c-stores achieve the level of customer engagement that restaurants have been able to get? There is a shift in the way brands think about their marketing, moving from category-centric to customer-centric, meaning instead of thinking about how to sell more of a product you think about who is buying those products. A customer-centric approach still revolves around selling more products, but it also means delving into who is buying them and why.
To move to a customer-centric approach, c-store marketers need to think about three main things: […]
On average about 300 people visit a store’s gas pumps a day, but only 35 percent of those customers step foot in the store. The opportunity to compel store visits is palpable – you are not unlike other marketers who dream of solving this dilemma. We all know that margin, for the most part, lives in the store, not at the pump. Which is why converting fuel customers to frequent in-store patrons is like the brass ring of convenience store marketing.
For years, marketers have tried to solve this challenge. Some send the same ‘buy one coffee get one free’ offer to all customers and then hope it pulls them in. Others have invested in expensive pump displays, point of purchase material and more to convert that customer. There is even a group that has given up trying to convert them – leaving room for competitors to grab their customers instead. There is a better way to motivate store visits.
Use an individual’s purchase data to compel in-store sales. […]