Archive for the “Loyalty” Category

What Chipotle Did Right (and Wrong) in Its First-Ever Loyalty Program

For a quite a while, Chipotle executives didn’t believe loyalty programs were for them. In fact, Mark Crumpacker, CCO/CDO of Chipotle, said in September 2015*, “We don’t believe the general supposition that loyalty will make less frequent customers more frequent.”

However, from the fourth quarter of 2015 into the early second quarter of 2016, Chipotle had a few health scares that contributed to its stock prices — and sales — to take a tumble.

In summer 2016, Chipotle was ready to rethink its stance on loyalty programs and launched its Chiptopia Summer Rewards, a three-month tiered loyalty program.

It’s reasonable to assume, based on the structure of the program (that we’ll cover next) and the business challenges they were experiencing, that
Chipotle’s motivation in creating its loyalty program was to increase visits.

Note: Before we go any further, we want to make it clear that Chipotle is not a client of Paytronix. This blog post is designed to analyze the Chiptopia program, share what worked and what didn’t, and help you think — or rethink — your own loyalty program.

The Chipotle Loyalty Program Structure: How It Worked

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What Are Brands Getting Wrong About Content Marketing?

An Interview with Content Marketing Professor Neil Feinstein

Content marketing professor and consultant Neil Feinstein has helped brands like Disney, American Express, and The New York Times improve their marketing efforts via social media, email, and mobile. In a recent interview, Neil provided insights from his years of experience that you can use to leverage content to bolster your own marketing efforts.

Paytronix: What are brands getting wrong about content marketing?

Neil: Too many brands align their marketing strategies with themselves, and not their customers. For a consumer interaction to be meaningful, it needs to be based on a consumer insight. What does the customer care about? Why should the customer care? Before marketers push out content, before they start tweeting or blogging or gramming, they need to understand the customer and then build a strategy that aligns with his/her expectations – not the business’s.

Paytronix: If that’s the case, what are most brands getting right about content marketing? […]

Think Like Domino’s – Become a Tech-Focused Brand

Keeping your guests engaged in 2017 and beyond means having the right technology to provide a seamless digital customer experience. These days, it’s said that you need to be more than a restaurant, you also need to be a technology company. There are steps your restaurant can take to enter the technology realm and provide the digital experiences that will compel guests to choose your brand.

Domino’s Pizza® has earned its reputation as a technology company by innovating the way it connects with its customers. In 2010, a change in leadership brought forward a tech-minded philosophy, and the results speak for themselves. Domino’s same store sales grew by 12 percent in 2015 alone, and the stock price has grown from $3.15 in late 2008 to $177.94 as of the writing of this article, so it’s safe to say its technology investments are paying off!

So what does Domino’s Pizza do so well? Here are three critical elements of Domino’s digital-focused guest engagement strategy that you can follow: […]

Why is the Beloved Open Rate Failing Marketers?

pinkberryA cornerstone of email marketing is testing. Perhaps it’s the day of the week that you send the message, or even the imagery and text inside the message. Arguably the
most prevalent element marketers test is the subject line. The appeal of doing so is clear: You have approximately two seconds to get the reader’s attention in their inbox as their finger hovers over the delete button. Optimizing those seconds is mission critical. Search for “subject line testing” on Google and you’ll be consumed by over 6.4 million results. The majority of that content will tell you that the “winning” subject line hinges on one key metric: the message’s open rate.

One of our clients, Pinkberry, performed an A/B subject line test. With an open rate that was 12 percent higher than subject line A, subject line B outperformed its counterpart. Based on conventional wisdom, Pinkberry should have gauged subject line B as the clear winner, right? Wrong. Most email marketers […]