People are creatures of habit. We get out of bed at the same time, start our day by visiting the same website, and go to the same place for our morning coffee on the way to work.
Although consumers’ habits may be hard to change, doing so can have a significant impact on your business.
While the number of trips per week that consumers make to convenience stores decreased between 2014 and 2017, dropping from 3.6 to 2.6, consumers continue to frequent c-stores for coffee purchases.
These coffee purchases can be the key to reversing that trend in visit frequency, as well as increasing spend.
After all, if people become accustomed to getting their morning coffee from you, it’s natural for them to make that a regular—perhaps even daily—habit. And if they’re already visiting your c-store for coffee, it would make sense for them to fill up an empty tank, buy a sandwich for lunch, or make another kind of purchase too.
Coffee seems like such a small purchase, but it can really be a catalyst for changing customers’ behavior and generating more revenue.
So how can you perk up your coffee program? […]
The future of restaurant marketing is happening right now. At this year’s Paytronix users’ conference, PXUX 2018, presentations from both Paytronix and its customers told stories of innovation and exceptional guest experiences. A path toward true machine-based one-to-one marketing has officially been plotted. Here are 13 ways to change the game – all from PXUX 2018.
Several exciting learnings were presented on the first day, when Andrew Robbins discussed the big picture in his annual PaytroNEXT session. The way guests want to be engaged is changing and we have three active initiatives that marketers need.
- One-to-One – True one-to-one marketing is difficult but provides huge value for the brand. Machine learning enables our proprietary algorithms to find the right offer for an individual and deliver it at the proper time to motivate the next visit. A visit challenge could feature a universal offer: “Visit 5 times in the next 4 weeks and get a free coffee.” Or every portion of it could be tailored to each guest: “Visit X times in the next Y and get a Z.” There are thousands of permutations of this, and an effective one-to-one solution can have five times the impact.
- K100SM – We’ll be getting data from many sources to round out customer profiles, whether they are program members or not. When we know 100% of our guests, we can deliver a 20% impact. This solution will be respectful to the consumer so that it is accepted as the new norm.
- Self-Driving CRMSM– The new world of one-to-one CRM is complicated, with computers and automation being used to determine what is right for each guest. Just as self-driving cars will safely and quickly get us from point A to point B, the same is true for self-driving CRM. The combination of machine learning and marketing automation will produce greater visit frequency and more spend. Paytronix not only focuses on what brands need today, but also develops the technology for what they will need in the future.
It’s likely you don’t need to be sold on the efficacy of loyalty programs. But, just in case you need a little reminder, a recent study found that just a 5% increase in customer retention can boost profits anywhere from 25% to a whopping 95%. Clearly, loyalty and retention are still exceedingly important parts of your business.
But, at the same time, another study has found that active loyalty program members—those who are engaged and regularly participate in a program—has decreased 2% over the past few years.
And while 2% isn’t a huge number, there are a couple things to note. First, that tiny little 2% can represent millions in the industry and perhaps even hundreds of thousands of dollars to a restaurant or convenience store business.
Next, that 2% only reflects the recent trends. If it’s the sign of a downward trend moving forward, it could spell big trouble for loyalty-dependent businesses.
So why are customers becoming less active in the loyalty programs they signed up for?
Convenience store forecourts haven’t changed much in the past 50+ years…which means that they’re the ripest with possibility.
Certainly, pay-at-the-pump options and TVs embedded in the pumps themselves have added ease and entertainment to the experience for customers, but there is much more that convenience store owners could do to optimize the experience for both their loyalty programs and their revenue.
With technology making it easier than ever to add more facets to our promotions and programs, it’s well worth exploring exactly why the digital landscape can meet up well with this traditional, drive-up-and-pump interaction. […]