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Paytronix Finds Cultivating Less Frequent Guests Key to Loyalty Program Impact

Ease of joining and continued recruitment builds membership and helps brands get to financial breakpoint where more than 15 percent of checks are attributed to program 

Newton, MAMay 22, 2017 — Paytronix Systems, Inc., a leading provider of reward program solutions to restaurants and retailers, today explains that targeting low frequency guests is the key to loyalty program impact in its latest brief, “Target low-frequency guests. Here’s why.” Defining critical mass as the point where more than 15 percent of checks can be attributed to the loyalty program, the Paytronix Data Insights report reveals that, as a good program matures, the majority of new members come from low frequency and infrequent guests. This guest segment presents the marketer with the largest opportunity for increasing the number of times these guests visit a brand - resulting in more incremental visits won from competing brands. 

Read the Paytronix Research Brief:Target low-frequency guests. Here’s why.

As the Paytronix Data Insights report explains, medium to high-frequency guests will be the first to join a brand’s loyalty program. However, by month four, the proportion of new members who have medium-to-high visit frequency drops to nearly one-sixth, with the majority of new members falling within the low and infrequent segments.

The Paytronix Data Insights team has determined that a brand usually cannot reach 15 percent penetration by enrolling only its best guests. And to achieve higher levels of penetration, it is even more important to be skilled at enrolling lower-frequency members. According to the Paytronix brief, getting low frequency guests into your program requires:

Target the program design to the right segment – Focus the design on low-frequency guests. They will need to understand the value proposition quickly and be compelled to join on the spot.

Make it easy to join the program – Offer multiple ways to join the program, such as through mobile apps, text-to-join, mobile-friendly registration web pages, kiosks, iPads in the store, and even paper registration forms.

Always be enrolling – Your servers are the programs’ best ambassadors. They must understand how it benefits them, it must be simple for them to use, and it must be easy for them to explain the benefits to guests. Falling short in any of these three areas will likely discourage your servers from inviting guests to join the program.

“When setting goals for the organization, be aggressive and aim for at least a 15 percent loyalty penetration rate,” said Lee Barnes, head of Paytronix Data Insights. “Getting to this level means you will need some lower-frequency members, which is also the key to producing incremental revenue. Experienced partners know how to design the program to attract this group of clientele, employing ongoing enrollment campaigns that are designed to compel the infrequent group to join the ranks of the brand’s most engaged customers.”

Paytronix Data Insights

Paytronix embraces Big Data, bringing together POS, loyalty, social media, and other disparate data sources to discover new opportunities for compelling visits and spending. The team answers the question, “what should we do and why?”  This report from the Paytronix Data Insights research team is provided to help brands uncover actionable insights for more effective use of their marketing investment.

Pick up a copy of this brief at The NRA Show, booth 6070.

Catch up reading Prior Paytronix Briefs, Extracting Customer Insights from Big Data:

 
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Insights to boost your gift card sales
Annual Gift Card Sales Report: 2019

Designed to identify the latest trends in restaurant gift card sales and help restaurant marketing executives compare results to others in the industry, use trends for planning inventory, and gain insight into how channel sales contribute to the growth of gift card sales programs, the Paytronix Gift Card Sales Report analyzed more than 190 restaurant brands and 550 stored value program data.