Whenever I Google “pizza delivery near me,” I’m overwhelmed by the number of options I have at my disposal. That’s why it’s important for any restaurant – but particularly those in highly competitive spaces – to think about what they’re offering customers that sets them apart from the competition.
When restaurant owners think about how their customers decide between them and their competitors, they often think that people’s decisions are made primarily based on food and customer experience. While that’s still true, there’s a crucial third element that consumers use to choose among their options — how restaurants use technology to facilitate guest engagement. […]
There are many different types of reward programs which make it challenging to choose which one is best suited for your brand. Ultimately, there are four considerations to always keep in mind when designing a program.
- Design for “Silver” customers. These are your 50th to 80th percentile customers. They are your regulars, visiting your store while purchasing gas and food. But they almost certainly go to other stores as well. By targeting and motivating these customers an opportunity is presented to drive them to visit you more often and for more purchasing occasions.
- Get customers to their reward, fast. Customers should earn their first reward quickly. When someone enrolls in your program they need to see immediate value in it, meaning that their first reward needs to happen within the next couple of visits so the customer can see the value in being a member. Additionally, silver customers, the customers your program is targeting should be earning their rewards fairly frequently. If you are doing a points program, have low-value redemption options such as coffee or candy that they can earn every five to ten visits, at least.
- Reward good behavior. Good behavior is whatever your concept wants it to mean, but probably includes a store visit and gas purchase, upgrading to premium gas, or visiting for more purchases, and new day parts. Your program needs to support your corporate goals. If you are trying to compel customers to visit and buy more freshly prepared food, then make sure the program and stores support that initiative.
- Leverage vendor funding to drive your results. Vendors’ interest are not always well aligned with your bottom line. If their promotion switches volume from, say, Coke to Pepsi, then that’s great for Pepsi. But if it didn’t drive any extra traffic into your store, or any incremental spending, then what did it do for you? Think about whose customer is. They are yours, not the CPS’s. Vendor funding can be used in different and unique ways in order to drive more visits and spend. A good use of vendor funding would be to leverage those funds to drive more purchases of an item and in return, the customer earns bonus points.
Reward programs deliver outstanding financial returns by motivating customers to visit more often and spend more with each visit. Learn more about building a reward program with your customers in mind by watching this webinar “Brilliant! Reward Program Design Principles for Convenience Stores.”
The Webinar Warrior Showdown was so successful last summer that we’re doing it all again! Starting this Tuesday, June 6 at 1:00 EDT, you’ll receive a chance to win a fantastic grand prize that will change your business forever. All you have to do is join us for as many of our weekly live, thought-provoking webinars as you and your team can in the months of June and July. The organization with the most webinar attendees will win a free, one-day loyalty workshop with the Paytronix Data Insights team sometime this fall.
Data Insights manager Lee Barnes will lead the workshop for the winning group. Lee has helped dozens of brands launch and manage their rewards programs. His undergraduate degree in Mathematics and MBA from Harvard Business School gives him the unusual ability to execute complex analyses and translate the results into ideas that business leaders can use. The lucky organization that wins the Webinar Warrior Showdown will receive free access to his impressive wealth of knowledge – a value of over $10,000. […]
When you notice a slowdown at your restaurant — quieter Saturday nights, lower check totals, fewer filled tables – you may think it’s because of your food or service. After all, the reason customers aren’t returning must be one of those two things, doesn’t it?
Well, focusing on just food or service overlooks a crucial third pillar of any successful restaurant: its technology. From the way you construct emails to your mobile app or website, technology plays a big role in how guests perceive your brand. And if you stay ahead of the curve when it comes to implementing new guest engagement technology, you can connect with guests in ways that separates you from the competition.
Unfortunately, some restaurant owners who implemented technology with the best intentions and believe they’re applying best guest engagement are often making critical mistakes. In many cases, the way restaurants use technology to engage with customers is what’s driving those customers away.
Here are five ways your guest engagement technology might be causing more harm than good. […]