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Loyalty Trends 2024: Loyalty Gets Personal with Experiences
Key Takeaway: Taking loyalty programs to a new level of personalization with advanced personalization tools helps operators maximize customer...
5 min read
Of course, effective personalization strategies require unified customer data and advanced analytics muscle. Many brands are now leveraging AI to identify patterns, extract insights, and automate smart segmentation.
Primanti Bros. uses Paytronix AI to calculate “Missed Visit scores.” With this information, the brand automatically re-engaged lapsed or at-risk loyalty members with targeted win-back offers aimed at reducing churn.
The ongoing campaign segments guests who miss one or more visits into three groups that get offers for $5, $8, or $10 off their next purchase within seven days, no strings attached. The campaign has lifted frequency (90%) and spend (50%), and has achieved an impressive average reengagement rate (16%) compared to similar industry campaigns (13%).
With personalization and analytics as the foundation, leading brands are reimagining loyalty itself through innovative new program models designed to drive deeper engagement.
HuHot Mongolian Grill rethought guest stickiness by introducing a subscription element—the “BOGO Grill Pass.” For $9.99 monthly, participating guests earn a free grill meal with every meal purchased. Despite the high-value discount, the resulting frequency and spend increases generated a significant lift in customer lifetime value and revenue: Compared to regular HuHot Rewards members, BOGO Grill Pass members spend 6 times as much during their first six months.
Taking a different approach, convenience store chain Break Time redesigned its MyTime Rewards program through an automated, multi-tier structure that awards members based on their individual buying behavior. Personalized messaging guides members along the loyalty path, encouraging them to reach new program benefit or tier levels and celebrating when they do.
Soon after launch, 12,000 guests achieved top-tier status and loyalty members were responsible for 42% of all transactions. A 25.6% spend increase and a 2% increase in gas gallons pumped have been attributed directly to the program.
With strong personalization and program design as the backbone, brands are layering on innovative engagement tactics like gamification to forge even deeper customer bonds.
Original ChopShop creatively combined targeted incentives and challenges within their loyalty program. Highlights include a 21% breakfast sales lift from a "Rise + Shine" campaign and more than 63,000 app downloads—with $116,794 in pre-loaded funds—from a six-week "Fuel the Season" initiative.
Jimmy John's took gamification to new levels with an audacious "Try Everything" promotion, challenging Freaky Fast Rewards® members to purchase all 25 core menu sandwiches. Those who completed the task received a special Achievement Badge called The Gauntlet, as well as a Jimmy Chips beanbag chair.
Fast-casual chain Sweetgreen revamped its entire loyalty program, under the “Rewards + Challenges” umbrella, engaging members to complete tasks (e.g., spending $20 or adding a side item) for offers such as a $4 credit or a free beverage. Sweetgreen Co-Founder and CEO Jonathan Neman says, “We see Rewards + Challenges as a way to double-down on owned digital relationships and create a more personalized experience for our customers.”
Of course, even the most brilliantly personalized and gamified loyalty innovations require clear communication to drive adoption and engagement. Strategic messaging is key for these pioneering brands.
Great Harvest Bread Co. uses Paytronix AI to create exciting 1:1 challenges for members. By making goals attainable and nudging guests with fun and aspirational prompts, the program grew visits, frequency, and spend by 35%.
"Before Paytronix, we struggled with slow seasons," says CEO Mike Ferretti. “By leveraging 1:1 campaigns, we engaged customers on a personal level and increased sales in ways we hadn't thought were possible. More campaigns and opportunities like this will only help grow our business and the future of our guest engagement strategy.”
Again and again, we see communication playing a vital role in loyalty success, from Dutch Bros's impressive onboarding to Primanti Bros.'s perfectly timed win-back flows.
As this comprehensive case-study roundup demonstrates, restaurant and c- store brands are compounding business impact by combining innovative loyalty trends like data-driven personalization, game-changing program models, inventive engagement tactics, and cohesive, impactful messaging.
Paytronix's advanced loyalty solutions make it easy to orchestrate this powerful loyalty convergence. To learn more, contact us now or download our complimentary loyalty guides for restaurants and convenience stores.