The Loyaltees Awards highlight leading and innovative brands in the restaurant and retail industries. When it comes to incredible guest engagement strategies, this year's winners set a new standard of excellence.

 
 

Pizza Ranch Achieves 780% ROI with Black Friday Double-Points Promotion

Pizza Ranch's Ranch Rewards Black Friday Promotion" generated a 67.6% lift in sales along with an increase in gift card sales. Using the Paytronix Rewards Program Platform, Pizza Ranch deployed a double points promotion five days before the 2015 Black Friday event. Strategic segmentation allowed Pizza Ranch to send relevant messages to targeted audiences and ultimately generate extra visits on what is normally a slow day for business. Fortunately, all of the extra visits and spend came at little cost to Pizza Ranch.

“In doing double points promotions, we tend to have an incredible ROI. The only cost associated with these promotions is the value of the points that we give away. In the case of the 2015 Black Friday promotion, we had an ROI of 780%.” -- Courtney Boone, Loyalty Marketing Manager at Pizza Ranch.

 

The Organization Cultivating its mission “To give every guest a legendary experience” since its inception in 1981, Pizza Ranch connects with its communities in a way that provides bridges for friends, family and colleagues to come together. Based in Orange City, Iowa, Pizza Ranch owns, operates and franchises over 194 locations in 13 states.

Consistent growth has been a Pizza Ranch staple, as the brand has become a beacon of community involvement and exceptional food. The Pizza Ranch buffet features the Country’s Best
Chicken™, legendary pizzas, salads and desserts, and is delivered with an unmatched service quality.

In 2011, Pizza Ranch launched its “Ranch Rewards” program, which is powered by the Paytronix Rewards Platform, and now counts more than 650,000 members across all its restaurants. Points are the currency of the Ranch Rewards program: members earn one point for every dollar spent, and upon reaching 75 points they are awarded with five dollars.

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The Challenge Many of the 194 Pizza Ranch restaurants are situated in rural areas, which makes them a great destination for local guests. However, this can be a problem on days when the general population is out and about, such as on holidays. To drive up sales on Black Friday, one of the busiest shopping days of the year, Pizza Ranch needed a real motivator to get people to stop by when they returned from shopping or to stop by to purchase gift cards. They turned to Paytronix for help. 

 

The Solution A new-improved Black Friday promotion solved for historically weak sales on the busiest shopping day of the year.

Pizza Ranch leveraged a double-points promotion that rewarded guests at double the usual rate of earning points for the purchase of both menu items and gift cards during the single-day promotion.

Five days before the 2015 Black Friday event, Pizza Ranch sent an email message designed to compel loyalty members to visit and take advantage of the double-points opportunity. Then, on Thanksgiving evening, when people were likely on their devices, looking at ads and planning their shopping strategy, they sent a reminder email to guests about the special promotion to entice them to plan their meal and/or gift card purchases for the pseudo holiday. They also promoted the event on their social channels rather than spending marketing dollars on POP materials.

In previous years, customer spend on Black Friday was either lower or about the same as other Fridays in November. With the introduction of double points on Black Friday, visits and spend grew significantly.

Overall, the Pizza Ranch Black Friday promotion resulted in:

Sales Lift -- In terms of total spend, there was 67.6% lift when compared to the previous Friday’s sales!

ROI of 780% -- Since the offer was a faster point accrual rate, the only cost to Pizza Ranch was the value of possible redemptions from rewards earned with the “extra” points. Using a conservative estimate of 100% redemption of those extra rewards, the return on investment was on this promotion was 780%!

Increased Gift Card Sales -- Many guests used the timely promotion to purchase gift cards which increased Pizza Ranch’s market share of holiday gift card sales and ensured future visits from gift card redemption.

Additional Nuances to the Pizza Ranch Double Points Promotions Include:

Building Traffic During Known Valleys in Visits. Pizza Ranch has run similar double-points promotions when they were seeking to boost visits during holidays and seasonal events such as Independence Day, Super Bowl Sunday, April 15, and Back to School.

Using Strategic Segmentation. Pizza Ranch uses a segmentation strategy combined with targeted double-points offers to drive traffic during specific days and dayparts, and to reactive members whose visit patterns are waning. For example, the savvy marketing team extends various offers to different segments to drive behavior.  In the same vein, the team leverages targeted offers to stimulate visits among members whose visit behavior patterns have waned.

“Since the Pizza Ranch Ranch Rewards program is a points program, members are already familiar with its value. They don’t have to change their behavior to participate. Running a double-points promotion makes sense for our audience. It only requires one simple behavior change of our guests, which is to come in to our locations on an extra day. It’s a simple concept, and attractive at that – you get closer to your reward twice as fast.” -- Cody Pierce, VP of Marketing at Pizza Ranch