Fast casual and full-service restaurant operators are utilizing loyalty programs to entice customers to dine more frequently and spend more each visit. With countless loyalty success stories it’s no surprise that loyalty programs are one of the industry’s marketing trends in 2014. In this 30 minute webinar, we’ll discuss why loyalty programs work and share an inside view of successful programs in restaurants just like yours. We’ll also review the key components of a successful loyalty program and tips for getting started with a custom loyalty program for your restaurant.

1. Reward
your Customers
Reward Your
Restaurant!
How Loyalty Programs Are Making An Impact
1/24/2014
1

2. A
Quick Introduction
Restaurant Experts
Fred Dilkes
Mobile & Kiosk
Customer Loyalty
Point-of-Sale
Online Ordering
1/24/2014
Business
Intelligence
2

3. A
Quick
Introduction
Restaurant Experts
Fred Dilkes
Mobile & Kiosk
Customer Loyalty
Point-of-Sale
Online Ordering
1/24/2014
Business
Intelligence
3

4. A
Quick
Introduction
Restaurant Experts
Fred Dilkes
Your “One
Throat To
Mobile & Kiosk
Choke”
Tech Provider
Customer Loyalty
Point-of-Sale
Online Ordering
1/24/2014
Business
Intelligence
4

5. Loyalty:
A feeling of devoted
attachment and affection
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6. The Lifetime
Value Of
One Customer To
Your
Neighborhood
Pizza Joint?
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7. $25,000
-says Forbes Magazine
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8. REPEAT
CUSTOMERS =
70% OF SALES
@ MOST
CASUAL DINING
RESTAURANTS
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9. Expansion of
Restaurant
Loyalty
Programs:
Restaurants Surveyed
NRA 2010
None
12%
Have One
41%
Planning One
47%
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10. Why Loyalty?
9
10
out of
Restaurant Owners say
their loyalty program
gives them a
Competitive
Advantage
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11. Why Loyalty?
60
%
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Of Consumers Say A
Loyalty Program is
IMPORTANT in
their buying decisions
-AC Neilsen
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12. Why Loyalty?
Consumers spend
46
%
More, on
average, with
companies that have
loyalty programs
Source: Total Research Corp & Custom Marketing Corp’s
Loyalty Monitor Study
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13. Why Loyalty?
Of consumers would
RECOMMEND a
restaurant more to
others if it offered an
appealing reward
program.
Source: http://loyalogy.com/loyaltypulse-consumerresearch-study-on-restaurant-loyaltyrewards-programs/
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65
%
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14. Loyalty Benefits:
Identify Your Customers Personally
Increase customer frequency
Turn new customers into regulars
Learn About Your Customers
Gain Referrals
Increase ticket averages
Reduce indiscriminate discounts
Prevent customer loss
Quickly Drive Business At Any Time
Save time & money on marketing
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15. The
ROI
of
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Loyalty
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16. Our Experience:
• Helped hundreds of restaurants implement
loyalty with our tool, SalesBuilder
• Automates e-mail, direct mail & text
communication based on customer behavior
• Integrates with POS & Online to track spending &
offer redemptions – or use our iPad app.
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17. ROI Examples
Increase Enrollments
Case Study: 5 store pilot at a fast casual/delivery national pizza chain. Previously used a
web-based e-mail only system. Switched to SalesBuilder with integrated POS sign ups
& rewards.
29
Average E-mail club new members, per month,
per location
Average Loyalty new members, per month, per
location, over 8 months
98
3.38x
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Higher enrollments than e-mail club alone
A Large, active customer database can not only
help your marketing program, it can add to your
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business valuation!
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18. Increased Ticket Averages
ROI Examples
Case Study: 4 locations analyzed over a 3 month period, 4 order types compared.
Dine In
To Go
Pick Up
Delivery
Loyalty Member
(4 store ticket av.)
$12.23
$14.71
$25.17
$37.60
Non Loyalty
Member
(4 store ticket av.)
$8.83
$10.89
$24.50
$36.92
$2.14
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Higher ticket average for loyalty
customers vs. non loyalty customers
(even with loyalty discounts)
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19. ROI Examples
30
%
Chance that a 1st time
customer will become
a regular
If they buy 3x
quickly, that chance
goes up to
Source: LoyaltyMagic
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67
%
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20. ROI Examples
Turn New Customers
into Regulars:
Case Study: 10 store fast casual/delivery pizza chain. We analyzed their POS
records to see how many new customers are coming back.
27%
Average # of NEW Loyalty customers
who returned at least once after initial
order (3 mo. period studied)
Average # of NEW NON-loyalty customers
who returned at least once after initial order.
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The loyalty messages are really helping bring new
customers back for another visit!
20
12%
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21. ROI Examples
Turn New Customers
into Regulars:
And in the same study …
14%
Average # of NEW Loyalty customers
who returned at least TWICE after
initial order.
Average # of NEW NON-loyalty customers who
returned at least TWICE after initial order.
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3%
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22. ROI Examples
Turn New Customers
into Regulars:
And in another, similar study of 4 locations, we looked at all the new customers in
their POS database from January – May, 2013.
Ordered 2+ times
Ordered 3+ times
Loyalty Customers
41%
22%
Non-Loyalty Customers
12%
4%
New customers who joined this loyalty program were over
order 3+ times than new customers who didn’t join!
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5x more likely to
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23. ROI Examples
Increased Customer
Frequency:
Case Study: 5 store fast casual/delivery pizza chain. We analyzed their POS
records to see how frequently their customers are ordering.
1.63
Average transaction count of new
Loyalty customers in first 60 days.
Average transaction count of new, non-loyalty
customers in first 60 days.
.54
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1.09
Difference every 60 days . Loyalty ticket
average of $29.91 = $96.90 added value per
loyalty customer per year.
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23

24. ROI Examples
Increased Customer
Frequency:
Case Study: 5 store fast casual/delivery pizza chain. Another way to look at how
often loyalty customers order
54
Loyalty customers order, on average,
once every 54 days.
Non loyalty customers order, on average,
once every 72 days.
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72
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25. Adding Up the ROI:
With Just 1500 Reward Members, adding 100 per month:
$204
More New
Customers
Converted to
Regulars
$7812
Loyalty Customers
order 2.5x more
per year
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$385
Loyalty Members
Have Higher
Ticket Averages!
Wasteful
marketing $$
saved
$750
Net ROI (after food cost & loyalty
program cost) : $6632!
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26. Loyalty
Misconceptions
“I Already Have An E-mail Program”
Your Loyalty Program:
• Sends the right message to individual customers at the right time
• Rewards customers for their loyalty
• Helps reduce the blanked couponing / discounting in mass e-mails
• Automates the process so you don’t have to think about it.
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27. Loyalty
Misconceptions
“I Already Have A Punch Card System”
Your Loyalty Program:
• Motivates customers to return by communicating with them.
• Increases the value of your business because you have a customer
database with detailed information.
• Lets you reach out to your best customers at any time to stir up
business.
• Is easier for customers – no punch card to keep track of.
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28. Loyalty
Misconceptions
“My Customers Don’t Want A Loyalty Card”
• You don’t need a card to have a loyalty program – phone # is fine.
• 60% of consumers don’t mind carrying a loyalty card if needed.
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29. Loyalty
Misconceptions
“I Don’t Want to Give Discounts To
Loyal Customers”
Your Loyalty Program:
• Lets you reduce blanket discounts across all marketing channels
• Improves the security of discounts you offer
• Loyalty customers retain higher ticket averages – even with discounts
• Other, value-add rewards & perks are also powerful motivators
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30. Loyalty Program
Keys to Success
•
•
•
•
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Enrollment
Communication
Rewards
Go Viral!
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31. Key #1: Enrollment
Be Clear About
Benefits!
>What do I get now?
>What do I get after enrolling?
>What do I get long term?
80%
Of Consumers find points for rewards more
motivating than periodic free surprise items
http://loyalogy.com/loyaltypulse-consumer-research-study-on-restaurant-loyaltyrewardsprograms/
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31

32. Key #1: Enrollment
In-Store Publicity
• Signage at register
• QR Code
• Script your staff
• Staff Incentives
• Box Toppers
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33. Key #1: Enrollment
Join
Text To Join
Thanks for joining XYZ
Rewards. Click Here
to activate!
• Enroll with mobile
• Option to reply with e-mail
• Or receive via text
83%
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Of texts are read within 1 hour.
SMS is preferred communication method
for under 25
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34. Key #1: Enrollment
High Tech Tablet . . .
Or Low Tech Fishbowl . . .
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35. Key #1: Enrollment
Featured on your
website
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35

36. Key #1: Enrollment
And frequently on
Facebook
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37. Key #1: Enrollment
Online Orders:
Integrate with your
online ordering site.
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38. Key #2: Communicate!
66%
Of consumers wish to receive emails with offers of value relating to
their restaurant rewards program
http://loyalogy.com/loyaltypulse-consumer-researchstudy-on-restaurant-loyaltyrewards-programs/
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38

39. Key #2: Communicate!
Personalized Messages:
• Welcome
• Birthday
• Anniversary
• After a transaction
• Near A Reward
• Earned A Reward
• Haven’t Seen You
• How’d We Do?
• Refer Someone
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General Messages:
• Holidays
• Sports Events
• New Menu Items
• New Service Offerings
• Special Deals
• Contests
• Recipes
• Community Involvement
• Telling Your Story
• Personalize with reward
status!
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39

40. Key #2: Communicate!
Direct Mail?
E-Mail?
Text?
!
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Social
Media?
Let Your Customer Choose Their
Preferred Method of
Communication!
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41. Key #3: Rewards
70%
72%
Of consumers would find an
unexpected free appetizer as a
benefit of a rewards program
appealing
Would like to receive a special
birthday reward
http://loyalogy.com/loyaltypulse-consumer-research-study-on-restaurantloyaltyrewards-programs/
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42. Key #3: Rewards
How Often & How Much?
• About 4-7 visits to earn
• Average is 10% value ($5 after $50 spent)
• $ off vs. Free Item
• Purchase required?
• Lifetime spend rewards
• Change your rewards sometimes!
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43. Creative Reward Ideas:
•Hold a grand prize drawing & award entries
• Give “experiences”
• Lunch for 2 @ school or the office
• A Dinner A Month For A Year
• In store Events
• T-shirts, hats, logo items
• Team up with partners
• Post your prizes visibly!
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44. Key #3 Rewards:
54% Would like to move to the head of
the line when its busy as a benefit
of the rewards program.
Would like to be able to donate
31%
their rewards to charity.
http://loyalogy.com/loyaltypulse-consumer-research-study-on-restaurantloyaltyrewards-programs/
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45. Key #4: Go Viral
Social
Media
Post transaction data & reward news on customer’s
Facebook page to share with their friends & gain referrals
Referrals
Bonus points for referrals, ongoing rewards based on your
friend’s spending
Affiliates
Involve & reward community organizations for member
referrals & spending. When I eat at your restaurant, my
local PTA benefits!
Advocates
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Survey customers & give the best responders extra perks;
invite their reviews on social sites.
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46. Getting Started
Choose A Loyalty Program Provider:
Restaurant Experts
• Give Customers A Choice – E-mail & Text in one program
• Easy to capture transaction data
• Automatic communications
• Flexible reward triggers
• Viral components – affiliates, social media, surveys
•
We Can Help!
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47. Building
Blocks of
Point-of-Sale
Success
Easy
Check Out Our
Integrated
All-Inclusive
Affordable
Packages!
1/24/2014
Mobile & Kiosk
Online Ordering
Customer Loyalty
& Feedback
Business
Intelligence
47

48. Take The
Next Step
Schedule A Personal
Demo
Watch Your Email:
Thank you gift
Slide Show
1/24/2014
www.granburyrs.com
800-750-3947
48

49. Questions?
Fred Dilkes
fdilkes@granburyrs.com
800.750.3947
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