Archive for the “Restaurant Marketing” Category

What Chipotle Did Right (and Wrong) in Its First-Ever Loyalty Program

For a quite a while, Chipotle executives didn’t believe loyalty programs were for them. In fact, Mark Crumpacker, CCO/CDO of Chipotle, said in September 2015*, “We don’t believe the general supposition that loyalty will make less frequent customers more frequent.”

However, from the fourth quarter of 2015 into the early second quarter of 2016, Chipotle had a few health scares that contributed to its stock prices — and sales — to take a tumble.

In summer 2016, Chipotle was ready to rethink its stance on loyalty programs and launched its Chiptopia Summer Rewards, a three-month tiered loyalty program.

It’s reasonable to assume, based on the structure of the program (that we’ll cover next) and the business challenges they were experiencing, that
Chipotle’s motivation in creating its loyalty program was to increase visits.

Note: Before we go any further, we want to make it clear that Chipotle is not a client of Paytronix. This blog post is designed to analyze the Chiptopia program, share what worked and what didn’t, and help you think — or rethink — your own loyalty program.

The Chipotle Loyalty Program Structure: How It Worked

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Millennials Want These Three Things from a Reward Program

Your brand needs to connect with millennials now – it’s crucial to the future of your business. At over 75 million strong, millennials dominate the U.S. population. This generation, born between 1980 and 1996, holds around $1.3 trillion in spending power, according to Boston Consulting Group, and they haven’t even reached maximum earning power…yet.

The age gap in the millennial generation is the root of many marketing communication challenges. The 20-year olds could be at college with irregular daily schedules, limited budgets, and a single relationship status. While on the other end of the spectrum, 36-year old millennials are likely to be married homeowners with children. Do individuals from age 20 to age 36 have enough common characteristics to be lumped together as a single target audience?

Researchers commonly note […]

Why is the Beloved Open Rate Failing Marketers?

pinkberryA cornerstone of email marketing is testing. Perhaps it’s the day of the week that you send the message, or even the imagery and text inside the message. Arguably the
most prevalent element marketers test is the subject line. The appeal of doing so is clear: You have approximately two seconds to get the reader’s attention in their inbox as their finger hovers over the delete button. Optimizing those seconds is mission critical. Search for “subject line testing” on Google and you’ll be consumed by over 6.4 million results. The majority of that content will tell you that the “winning” subject line hinges on one key metric: the message’s open rate.

One of our clients, Pinkberry, performed an A/B subject line test. With an open rate that was 12 percent higher than subject line A, subject line B outperformed its counterpart. Based on conventional wisdom, Pinkberry should have gauged subject line B as the clear winner, right? Wrong. Most email marketers […]

You Are Busy, Segmentation Should Not Take Up Your Day!

How many times have you sat at your desk watching the results of a campaign you were excited to roll out, only to see those stats flat line, or worse, nosedive into a negative return on investment? Without a doubt it is the defining moment of any marketer’s career. It becomes that “aha” moment where you can say, “I probably should have segmented the audience for this campaign.”joelblog

Segmentation has long been a core component of Paytronix’s 1-to-1 marketing platform. Studies show that segmentation is a vital tool in any marketing promotion, as relevant communication drives 18% more revenue than broadcast communication. In fact, […]