Andrew Robbins

Today, Paytronix looks a whole lot different. We have a new logo, new colors, and a whole new brand. But this isn’t about an instant transformation, it’s about making our brand match the company we’ve become.

Here at Paytronix, we’ve been innovating in the digital customer engagement space for more than two decades. We created the category.

Two Decades of Technology Growth

When we set out on this journey, technology was transforming the landscape, not just for restaurants and convenience stores, but for nearly every aspect of our lives. This was before the iPhone, when mobile devices flipped open. Most discussions of artificial intelligence were relegated to science fiction, and the innovative brands had just started to use digital technology to track core business functions.

With just 10 employees and a handful of clients, we defined the category of digital restaurant loyalty. Today we have 350 employees worldwide, passionately innovating for our more than 1,800 clients. When Newsweek named the top restaurant loyalty programs, we found 12 of our clients on the list. When Nation’s Restaurant News recently called out the groundbreaking loyalty programs of this year, our clients Wow Bao and Jimmy John’s were honored. We work with convenience stores that are on the edge of innovation, including Maverick, GPM, Kum & Go, Yesway, MAPCO, United Dairy Farms, and so many others.

A New Era of Digital Guest Engagement

We’ve changed with the times, both in our technology and our offerings. Often, we were the first in the industry with new technologies. We innovated on gift cards, e-gift, and even comp cards. We were on the forefront of using artificial intelligence to understand guest behavior and help our clients build effective programs on that knowledge. We began offering online ordering when it was still a small part of the market and have grown to become one of the two enterprise platforms in the space.

And while we innovated and changed our offerings, our brand remained stagnant. The result was a large gap between who we are and what we looked like.

When we went out and spoke with our customers, partners, industry leaders, and even our prospects, you told us a few things.

First, that we are the gold standard when it comes to digital loyalty. For this, we thank you. Yet, we now offer so much more than loyalty.

Second, that this new world of digital guest engagement is difficult, and they trust our team to help them through it. Through the pandemic, restaurants, convenience stores, and other retailers put together the digital tools they needed to survive, including loyalty, online ordering, messaging, mobile apps, CRM systems, and a host of other keys to digital engagement.

The challenge today is that these pieces need to align to be truly effective, and that’s what the Paytronix team is built to do.

And third, that our look and feel didn’t match the dynamic company they know. We believe our brand now matches our offering, and we hope you do, too.

So many of you have been clients for five, 10, 15, or even 20 years. We look forward to writing the next chapter of our joint success by keeping your guests happy and returning. After all, that’s what keeps our team motivated every day.

QDOBA’s streamlined new rewards program is an example of how to build loyalty by offering guests a great customer experience and listening to what matters.

We know that a better customer experience does great things for a brand. Well-designed and executed loyalty programs, especially programs like this one, can have a substantial impact on visit frequency, incremental revenue, and overall customer lifetime value. Research conducted by Paytronix and PYMNTS found that 70% of quick-service and fast-casual patrons take advantage of loyalty programs offered by several restaurants they purchase from frequently, and 64% of customers use loyalty programs at multiple restaurants from which they frequently purchase.

But it’s also true that what works today cannot work forever, so it’s important to have a technology platform in place that offers flexibility, and a team that knows how to take full advantage of a platform.

QDOBA is a long-time Paytronix partner, with a very successful loyalty program. But we are always looking for ways to increase revenue and to make the entire experience better. Working with the Paytronix Data Insights team, QDOBA took a deep dive into the data, asking questions of both active and lapsed users to understand how they interact with the brand, what they love, and what they want.

Guests made a few things clear. They loved the food and they loved earning rewards that got them free meals, but they wanted it to be easier. In short, easy redemption and relevant, compelling rewards are key to strong member engagement.

The result is a simplified program that offers a fast path to rewards which increases visit frequency and boosts customer acquisition.

It’s this kind of work that creates a thoughtful program that keeps the customer front and center.

A big congratulations to Peet’s Coffee, which just launched its new loyalty program on the Paytronix Platform. Peet’s is a longtime Paytronix client and we prize our collaborative and creative relationship that helps push the boundaries of guest engagement programs.

The latest version of Peetnik Rewards is about giving customers more flexibility in how they earn and spend their rewards, as well as getting customers rewards faster. While Peet’s based its previous rewards on visits, this new program focuses instead on automatic and bankable points based on spend. When you add to that the ability for the customer to choose how and when they want to receive their reward, you have a program that lets customers tailor the benefits of the loyalty program to their personal purchasing behavior.

This kind of project doesn’t happen without a number of technologies working closely together, which is why we’re so proud that Peet’s approached Paytronix from the very start. Loyalty is one pillar of a comprehensive system that includes a custom-designed mobile app, online ordering system and POS. It’s the loyalty program that makes it possible for a person to earn points through an online order, and then spend those by redeeming points for alternative milks or espresso shots to lattes, or ordering signature breakfast items, beverages or beans.

Bankable points programs continue to increase in popularity in part because they’re so easy to understand. In our annual Loyalty Report, we found that while bankable points programs account for just 31% of all core programs, they grew tremendously in 2020, largely because of the flexibility the programs offer to customers.

We’re eager to see how this program grows over the coming months and years and look forward to our continued relationship with such an iconic coffee brand. Download the Peet’s app here.

Remaining competitive in the digital space means leveraging data to boost your business at every opportunity. You might be surprised to learn just how much actionable information is at your fingertips if you know how to mine the data available to you.  

For the convenience store operator looking to stand out from the competition, data can answer some key questions: Who is your competition, and how can you overcome their strategies to own the customer? 

I recently had the chance to address a wonderful crowd at the Outlook Leadership Conference about this very issue. 

Who is your competition? 

Calculating how to best compete begins with knowing who you are competing against. You can start by putting yourself in the place of the customer along the customer journey. A customer has a need and undertakes a search to fill it. The search can be a neighborhood walk, a driving search or, increasingly, an online search.​ 

Not long ago I tried this myself. I looked on Yelp for fuel near me and found 10 locations – but a closer look revealed only four competitors since many carry the same flag. Similarly, a search for coffee brought up 86 locations. And a broader search for food gave me a whopping 130 locations within two miles – and when I switched over to Doordash and Grubhub another 36 locations showed up that weren’t on Yelp.  

But wait. Why do DoorDash and Grubhub have listings that aren’t on Yelp? Well, some of those are “ghost kitchens.” This is a term that’s cropped up a lot lately and one that is having a major impact on any company dealing with delivery. I discovered two brands I had never seen before Guy Fieri’s flavortown kitchen and Mr. Beast Burger. It turns out they are virtual brands where you can only buy their food through delivery services (no dine-in) and the food is prepared in the kitchen of a well-known Italian chain Bertucci’s.   

Three types of Ghost Kitchens are currently flourishing: Virtual brands like Guy Fieri’s; restaurants that are growing into new regional markets and trying out new brands; and third-party aggregators themselves, like DoorDash and Uber Eats. This means you have actually been battling for customers against competitors you couldn’t even see unless you went looking in your phone. That kind of competition calls for a significant digital strategy on your part. 

How can you compete? 

How can any brand compete on the delivery marketplaces when there are 166 listings within a 2 mile radius?  What will it take to get to the top of search listings? It seems some brands are stacking the deck with ghost kitchens so they show up if you search for “Italian,” or “chicken” or “burgers.” This seems like a daunting task for any brand. What makes more sense is to change the rules to a game that is easier to understand, control and measure; you should own the customer. 

How can you own the customer? 

Now you know who you are competing with – and everyone is in a fight to own the customer. Fortunately, the data behind the most successful brands tells us their secrets.  

• Anchor with a Strong Loyalty Program. Adhere to the key design principles of loyalty programs. Keep the program simple. Make it easy to enroll and easy to understand the program, track your points, and see daily deals and limited time offers. This will give you the insight and information you need to create the programs that keep customers coming back.  
• Hone Your Ordering Strategy. Implement first-party ordering​ with a website and mobile app – but use third-party aggregators for delivery and customer acquisition​. A first-party system gives you complete control while also enabling you to keep the customer information. Also important is to offer a choice of fulfillment. Today’s customers expect the option to choose from takeout, curbside, or delivery.  
• Make Payment Easy. Ensure a painless payment process whether your customer is in person, visiting your online store, or ordering via mobile app. Leveraging Apple Pay and Google Payments (which is currently fee-free) can mean high conversion rates, speedy checkouts, and few errors. You also want to integrate your loyalty program with ordering so people can easily earn and redeem rewards. 
• Personalize through Artificial Intelligence​. AI can do incredible things, when used properly. We focus on what we call AI to IA^sm, that is, using artificial intelligence to drive individual action. It can help you target the best times for reaching out and recapturing lapsed customers and can even predict a lapse before it happens. It can help you identify the best day of the week for offers and discounts – without compromising profits or traffic. And it can tailor campaigns to your individual guests based on their behavior.  

Today’s marketplace is a double-edged sword – the pressure on businesses to compete with data and tech is higher than ever, but emerging tools are giving you the means to do so.  

Do you have questions about how you can better leverage data to benefit your business? Paytronix would love to hear from you. Get in touch today.