Utilize a strategic framework and leverage adaptable guest engagement tools to operationalize guest loyalty in an ever-changing marketplace. MonkeyMedia and The Catering Institute offer a playbook for today’s unprecedented consumer demand for takeout, delivery and catering – the off-premise paradigm shift.
We recently invited Erle Dardick and Mo Asgari of The Catering Institute and Monkey Media Software to join Paytronix in a discussion on building lifetime loyalty, with a focus on the guest engagement tools helping today’s brands earn loyalty and repeat business. The conversation explored which brands are the best at leveraging technology to keep customers engaged. We discussed how the strategy must evolve to follow guests through the various stages of their lives.
Erle and Mo provided a playbook for tapping into today’s unprecedented consumer demand for takeout, delivery, and catering—the off-premise paradigm shift. […]
Loyalty programs are a great way to retain customers and keep them coming back to the store time and time again. In fact, by increasing customer retention by just 5 percent, brands can increase profits by 25 to 95 percent, which is why loyalty programs are a go-to marketing source. But there is one major problem with today’s loyalty programs – there has been a 2 percent decline in overall active member rates which leads to slower growth and profits for brands.
What is causing this decline in active participation, and how can brands turn it around to fix this problem?
There are a couple of new insights that help shed a light on the cause of this decline and the tactics that can mitigate and even turn around loyalty programs so they are profitable and engaging to customers. […]
Reward programs have been around for years. Airlines, hotels, and restaurants adopted these programs decades ago. Convenience stores, on the other hand, seem to prefer club programs and simple promotions like 3 cents off per gallon or short-term, low-value programs.
At a high level, mass promotions are a great business strategy, driving more visits and spend. Most of the time they are also paid for by the CPG vendors, so the cost of running these promotions is minimal to the convenience store. Mass promotions and eblasts get brands quick wins and compel customers to make purchases with the incentive of getting an item for free.
Most mass eblast promotions are the standards “Buy 1 coffee, Get 1 coffee Free.” Let’s think about this from the customers’ point of view, a very frequent customer who comes in every day for their morning coffee before they head off to work could get a free coffee just like the customer that has maybe come in once or twice would be able to get the free coffee with their purchase. The fact is, the customer that comes in every day would have been willing to purchase that cup of coffee at full price. You are essentially rewarding the frequent customer with a free coffee for not changing their behavior or driving an incremental visit or spend and eroding the revenue you did get from driving the customer who has not come in as much and did change their behavior. […]
The convenience store industry is going through a transformation where retailers are becoming competitors in the foodservice space, but there is still a lot that c-stores can learn from restaurants when it comes to customer engagement. By learning more about their customers and leveraging the data, c-stores can build loyalty and earn increased visits and spend from their customers.
How can c-stores achieve the level of customer engagement that restaurants have been able to get? There is a shift in the way brands think about their marketing, moving from category-centric to customer-centric, meaning instead of thinking about how to sell more of a product you think about who is buying those products. A customer-centric approach still revolves around selling more products, but it also means delving into who is buying them and why.
To move to a customer-centric approach, c-store marketers need to think about three main things: […]