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Two-Day Promotion Drives 200% Lift in Member Spending

More than 90,000 members had participated in this client’s “buy 10, get one free” loyalty program. After reaping the benefits of its rewards program for more than six years, the fast-casual chain wanted to test to see just how quickly its loyal guests could drive more sales.

 

The Challenge Quote

More than 90,000 members had participated in this client’s “buy 10, get one free” loyalty program. After reaping the benefits of its rewards program for more than 6 years, the fast-casual chain wanted to test to see just how quickly its loyal guests could drive more sales.

The Promotion With the understanding that richer rewards typically generate greater involvement, the restaurant offered a 5-point promotion for each entrée purchased instead of the core program’s usual awarding of 1 point for each entree. During the two-day promotion, when members made a qualifying purchase, as defined by the core program, they received 5 points (half way to a free entrée). If members made a qualifying purchase on both promotion days, they earned enough points for a free entrée.

The day prior to the first promotion day, an email message announcing the two-day event was deployed to loyalty program members. An additional email was deployed the next day to remind recipients of the second and final day of the promotion.

Paytronix enabled the 5-point promotion in multiple ways:

  • The promotion rules provided that the correct number of points was automatically added to the member’s account when a qualifying purchase was made.
  • An HTML email campaign with two distinct messages was scheduled for deployment at two specific times.
  • The success of the program was measured by tracking actual revenue amounts via Paytronix’s proprietary Eat-ThruSM statistics. In addition to reporting open rates, Eat-ThruSM statistics track each email recipient’s actual spend, as well as the number of total and unique restaurant visits generated by the campaign.

The Results Operations had trouble keeping up with demand over the two-day promotion. Both the operations and marketing teams were stunned, as an influx of thousands of guests resulted in a 29% increase in sales. This increase in sales was driven by loyalty members increasing their spend by about 200% during the promotion.

Week-over-week comparisons revealed upticks in every measure:

  • Restaurant sales were up 29%.
  • Total guests were up 46%.
  • Total unique visits were up 46%.
  • Total dollars were up 54%.


All metrics that were measured exceeded expectations. As the team began to analyze its successful campaign more carefully, it discovered proof that the program is a dependable tool that can be used to drive sales.

Promo Impact

Members were engaged. During the two days of the promotion, members drove more than 50% of total chain sales.

No cannibalization occurred. By comparing the activity during the promotional period to that for the entire week before and the entire week after, we were able to determine that sales on the promotional days were not taken from other days of the week.

Enrollment and registration increased. The membership’s excitement and reactivation caused evangelical activity, with members bringing friends and colleagues to dine. Member registration for the day spiked to 125% of the pre-promotional average.

Forecasting will be more accurate. After discovering the speed and impact of this promotion, the client can better prepare for the operational impact of future promotions.

To learn more about how loyalty promotions can help your business, contact us.

| Two-Day Promotion Drives 200% Lift in Member Spending
Discover How to Drive Incremental Visit and Spend

Pinkberry wanted to create a promotion for its new Pinkbee’s™ low-fat milk ice cream product that would compel loyalty members to act and drive a sales and visit lift over the busy Fourth of July weekend. 

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Download this Paytronix case study and discover how Pinkberry was able to drive incremental visit and spend.