That “We Miss You” Offer Could Be Making You Lots of Money!

A weekly email is sent out to a chain’s loyalty program members who have not visited any of the restaurant locations in the past 90 days. The message contains an offer for a free entrée, which can be redeemed within 30 days.

Producing about $1.7 million per year in sales, the strategic campaign has been paying off handsomely. As an organization, this chain considers loyalty accounts that have been dormant for more than 90 days to be lost guests. In other words, if no action is taken, these guests are viewed as having a future lifetime value of $0. Between 12 and 13 percent of the chain’s dormant users respond to this campaign by visiting a restaurant and redeeming the offer for a free entrée. On average, responders visit 1.2 times during the monthlong promotion. Prompting visits within the month is just the beginning of the stream of spending that this campaign inspires. It turns out that 70 percent of these members continue to stay active (each visit occurs within 90 days of the previous visit) in the months following the promotion.

This Paytronix-powered promotion was easy to set up and had several other benefits, including:

No drain on resources: An automated campaign runs weekly without involving the chain’s marketing or IT staff.

Useful guest behavior data: Reports detailing the campaign’s results help the corporate marketing team articulate the promotion’s true financial benefit to franchisees.

Less fraud: Through the integration with the merchant’s POS, Paytronix limits fraudulent guest activity by making the reward available only one time. Plus, on the campaign’s expiration date, the system automatically removes any unredeemed rewards from accounts.