3 Takeaways from 2023

This year, the Paytronix Webinar team spoke with some of our best customers about their biggest challenges and wins in guest engagement. Now, as 2023 draws close, here are a few of the prevailing trends to consider in 2024.

1. Adjust Loyalty Programs to Fit the Current Business
2. Streamline Digital Guest Experiences with One Platform Benefits
3.  Take Control with Flexible Tools

Adjusting Loyalty Programs to Fit the Current Business

Inflation was a challenge for every brand last year. Operators faced rising costs of ingredients and supply chain issues while guests made the most of strained budgets.  But loyalty programs were key for shielding both businesses and consumers from a volatile economy. Our Loyalty Report 2023 found consumers could sustain their spending habits with loyalty programs, obtaining the same great value from their favorite brands. Meanwhile, brands were right-sizing loyalty programs to ensure the current program was still engaging guests while delivering sustainable financial benefits.

Even if inflation isn’t the motivating factor, evaluating a loyalty program and refreshing it to provide a sales lift was a big trend in 2023. One restaurant brand that undertook a successful loyalty program refresh was On The Border.

After launching casual dining’s first subscription, Queso Club, in mid-2021 On the Border’s finance team found the program was driving excellent engagement but over-discounting guests.   The On The Border team went back to the drawing board to redesign its loyalty program to deliver comparable value to guests in a more personalized, sustainable way. With a new program that featured 1:1 marketing campaigns, tiers, and robust rewards for its most loyal guests,  On the Border was able to enhance the digital guest experience while increasing the overall effectiveness of the program.

Seeing yourself in this story? Your loyalty program might need right-sizing.  To make it easy, keep an eye on six key metrics:

1. PENETRATION RATE: The percentage of the total guest base that is engaged and actively using the program.
2. CONVERSION: The percentage of guests who have enrolled in your program.
3. ENROLLMENT: The hard number of guests who have enrolled in your program.
4. VISIT FREQUENCY: The rate at which loyalty members are visiting your locations on- or off-premises.
5. RETENTION: The percentage of guests who remain enrolled in your program.
6. AVERAGE CHECK: The typical check size for a transaction attributed to the loyalty program.

After revamping its program, On the Border saw a 20% boost in loyalty visits, a staggering 96% increase in monthly new enrollments, and a 26% increase in spend per visit – all while the brand decreased its discount percentage by 15%.

“We tried to evolve our program from what we had with Queso Club, but we’re really still trying to exceed customer expectations of a loyalty program and keep that high perceived value. I like to think we’re the best value in casual dining.”

Alex Stucky, Senior CRM and Digital Marketing Manager, On the Border

Streamlining Digital Guest Experiences With One Platform Benefits

The digital guest experience for any restaurant or convenience store customer goes beyond loyalty programs to include the online ordering platform, mobile app, messaging platform, and more. Everything from marketplace management, gift cards, and marketing automation plays a role in the success of an engagement strategy.

Some brands choose to go with different providers for each piece of digital guest engagement, which can fracture the guest experience and complicate actionable data analysis.  Many brands who moved quickly to adapt during the pandemic, adding to their tech stack out of necessity, are now evaluating the effectiveness of these tools moving forward as they face the challenge of managing multiple vendors, complicated operations, and integration roadblocks.

In a webinar with Paytronix VP of Online Ordering Tim Ridgely, both Chris Schefler, Director of Brand Management for Mr. Pickle’s Sandwich Shop, and Renae Scott, Industry Expert and CMO, spoke about the benefits of a single platform approach versus the “frankenstack,” a cobbled-together tech stack that relies on integrations between vendors to function smoothly.

For small agile teams working with limited resources, getting started with a new platform can be overwhelming, but seeking support is key.  Renae recommends leaning on experts at your vendor who can share best practices with you to make sure you are getting the most out of your new platform, working with a third party who can provide the same level of support or expertise, or hiring an internal expert.

Small and Agile Teams Taking Control With Flexible Tools

A modern guest engagement strategy provides equally dynamic experiences for guests and brands alike. While guests receive real-time, personalized messages, brands benefit from an easy campaign configuration and design.  

In 2023, we saw brands refresh their mobile apps, ditching cumbersome one-size-fits-all templates, and embracing customizable designs their teams could edit without a pricy, agency-led process.

When convenience store brand Twice Daily relaunched its mobile app, it included a more engaging interface, instant customer communications, and a rewards catalog. Coupled with a rapidly growing, integrated online ordering channel, Twice Daily’s loyalty-attributed sales have skyrocketed by over 34%. Today, Twice Daily is leading its customers down 1:1 journeys that maximize lifetime value and make customers feel truly understood.

Twice Daily Director of Marketing Eric Rush joined Paytronix Strategist Meghan Wang for a webinar to discuss how brands can optimize their mobile app to engage customers.

Rush explained that when designing their relaunched app, Twice Daily considered customer feedback, and created an app that suited their customers’ needs.

Some best practices for mobile apps:

1. Ease of use: Make sure the features most important to your users are easiest to get to. For some brands reward tracking might be most important, for others it may be access to a scannable barcode for identification.  Listen to your customers and have the flexibility to build the app that is easiest for them to use.
2. Integrated feature set: Customer expectations for mobile apps include the ability to place orders, track their point totals, and redeem rewards. Integrated ordering capabilities let your guests engage with your brand on the go and gives your teams a full set of behavioral data that you can use to segment and boost sales.
3. Make it worth keeping: It’s easy for guests to uninstall your app if it’s not being used.  Consider mobile-only offers that motivate guests to keep your app and also prompt an additional visit.  You can also engage your mobile users through geofencing and push messages to deliver messaging that’s both timely and relevant.

As you start getting ready for the new year, consider these three trends from 2023 and you’ll be on the path toward success.