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Pizza Ranch Achieves 780% ROI with Black Friday Double-Points Promotion

Pizza Ranch launched its Paytronix-powered “Ranch Rewards” program in 2011, which now has more than 797,000 members across all its restaurants. Points are the currency of the Ranch Rewards program: members earn one point for every dollar spent, and upon reaching 75 points they are awarded with five dollars.

 
The Challenge

Many of the Pizza Ranch restaurants are situated in rural areas, which makes them a great destination for local guests, but a problem on days when the general population is out and about. To drive up sales on Black Friday-which had historically weak sales, Pizza Ranch needed a real motivator to get people to stop by when they returned from shopping.

 
The Solution

Pizza Ranch leveraged a double-points promotion that rewarded guests at double the usual rate of earning points for the purchase of both menu items and gift cards during the single-day promotion.

 

Five days before the Black Friday event, Pizza Ranch sent an email message designed to compel loyalty members to visit and take advantage of the double-points opportunity. Then, on Thanksgiving evening, when people were likely on their devices, looking at ads and planning their shopping strategy, they sent a reminder email to guests about the special promotion to entice them to plan their meal and/or gift card purchases for the pseudo holiday. They also promoted the event on their social channels rather than spending marketing dollars on POP materials.

The Results

67.6% lift in total spend compared to the previous Friday’s sales. ROI of 780% -- Since the offer was a faster point accrual rate, the only cost to Pizza Ranch was the value of possible redemptions from rewards earned with the “extra” points. Increased Gift Card Sales -- Many guests used the timely promotion to purchase gift cards which increased Pizza Ranch’s market share of holiday gift card sales and ensured future visits from gift card redemption.

 
Takeaways

Pizza Ranch continues to run similar double-points promotions when they were seeking to boost visits during holidays and seasonal events.

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