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Chain Drives 21% Lift in Member Spend with Instant-Win Promotion

THE CHALLENGE Faced with a perennial dip in sales due to winter weather and school vacations, a multi-unit, franchised, quick service client asked what it could do to drive incremental sales in February. With the resource of its long-established loyalty program in place, the restaurant chain knew it had the opportunity to tap into its guest database to achieve this goal.

After collaborating with Paytronix, the client decided to take advantage of an Instant Win promotion, which was designed to randomly surprise and delight members with rewards.

Adding a layer of excitement to its existing program is just what this client needed to engage its loyalty program members. The client publicized its new promotion, “Love is Just a Swipe Away,” by strategically placing point-of-sale signage in each location and sending its monthly email newsletter to its members with a message about the promotion.

With Paytronix software operating behind the scenes, guests were pleasantly surprised when, at random, they were selected to win one of four prizes during the month-long promotion.

The Paytronix Rules Engine enabled the client to select odds for winning each of the four prizes – lower-cost prizes had higher odds, while higher-cost/higher-perceived-value prizes had lower odds. Each prize was a menu category – free chips and queso, a free taco, a free burrito, and the grand prize of a free burrito every week for one year.

This Paytronix-powered promotion kept guests excited and engaged with:

  • Rules that randomly selected contest winners in real time and placed rewards directly on the members’ accounts, automating the promotional campaign
  • Integration that enabled a pop-up window to display on the POS so that the cashier could congratulate the winner within earshot of other guests
  • Custom receipt messaging that displayed the rewards the guest won along with reward expiration date

THE RESULTS AND FINANCIAL RETURN By adding the element of chance to its program, this client not only countered the typical dip in sales during the month of February, but it also created a renewed zeal in guest loyalty that lasted far beyond the promotion’s 28-day life.

Year-over-year sales for the month of February were up - way up. While non-member spend remained relatively unchanged, member spend was up 21%, driving an overall sales increase of 8%. Members were able to redeem rewards issued as part of the promotion in February through mid March. Therefore, March sales were impacted by this promotion too! Member sales in March of Year 2 were up 7% (net of rewards redeemed) over March of Year 1 sales.

Because of the point of sale materials and in-store excitement, this promotion produced the extra benefit of a sizable spike in enrollment and registration rates. When compared to the monthly enrollment and registration averages for the three months prior to the promotion, enrollment was up 30% and registration was up 21%.
Overall, management was thrilled with the promotion and viewed it as an innovative way to counteract the chain’s predictable drop in February sales.

To learn more about how you can counter seasonal dips in sales, please call 617-649-3300, ext. 5 or visit www.paytronix.com


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