5 Ways QSRs Can Increase Revenue and Margins for 2019
As leading QSRs look to stay competitive, it’s time to do more with data. For too long, restaurants have used punch cards – first physical then moving into the digital realm with mobile campaigns – to reward loyal customers. While punch cards are a great engagement and repeat purchase tactic, they don’t collect the most important customer data. Your competition is beginning to invest in next gen retention strategies and technology to collect customer data to deliver personalized experiences across each customers’ journey. Once you have critical customer data in hand, you can look across verticals and adopt the tactics other brands are using to increase engagement and retention.
#1 Build Out Holistic Customer Profiles
Today’s QSR loyalty programs lack the personalization trends growing in other verticals. While digital punch card loyalty collects frequency and some purchase information, it doesn’t attribute this data to a person and it leaves out valuable transactional and interaction data.
Personalization starts with building out a data-rich customer profile from the transactional, behavioral, and emotional interactions a member has with a brand across hundreds of touchpoints, what we call the GoldenProfileTM. One of the best conduits to personalization is a loyalty program, which by its nature requires customers to opt-in and volunteer their information to brands. In exchange, customers ask for relevancy – they don’t want blanket emails filled with discounts or persistent promotion of products they have no interest in. Building out data-rich customer profiles not only gives you information customers say is important to them, but it collects the behavioral, transactional and emotional data that tells you where their true loyalty lies. Having a holistic view of your customer means you can cultivate the experiences, campaigns and communities that drive brand loyalty. We’ve seen as much as a 250%+1 increase in spend for members who are engaged beyond transactions.
#2 Curate Personalized Engagement and Enhanced Cx
Personalization goes far beyond putting a name on an email. Personalization means the member is being guided along the milestones of their individualized loyalty journey through the campaigns and experiences that demonstrate how well the brand knows and appreciates them. Over time, unique member journeys cultivate the emotional bonds and dependence on a brand until, inevitably, your restaurant becomes embedded in the member’s lifestyle – holding top-of-mind real estate and making visits and purchases nearly automatic. This habit-building behavior leads to increased customer lifetime value and a lift in RFM.
#3 Focus on Making Your Acquisition Efforts Stick
The disparity between the cost to acquire a new customer versus the cost to keep a customer is well documented. You’re spending a great deal on new acquisition every year. With the ability to suggest an ongoing relevant value exchange with new customer, you’re giving them a reason to come back. With this strategy, you’re able to evaluate their behavior through minimal interactions. With this behavioral and transactional data, you can build a relevant dialog between your brand and the customer – you make an offer, you gather feedback information, and refine the next offer, guiding the member along those stages of their journey toward maximizing their customer lifetime value to the brand. You can even refine your acquisition efforts through this data – by identifying and knowing your highest value customers, you can develop an acquisition strategy that attracts those who resemble them, and are able to invest in these customers for a higher return, keeping the cycle of increasing numbers of customers incorporating your brand into their daily lifestyles, to build out your revenue and add to your bottom line.
#4 Think Outside the Points with Recognition
More and more loyalty marketers are thinking beyond points when it comes to program design. While they may still include points in their program construct, these progressives are focusing on recognition, richer experiences and surprise rewards to build out custom loyalty journeys for their members.
#5 Make Data-Backed Business Decisions
Through predictive analytics, knowing and recognizing the value of your customers at each point along their individualized journeys means you can calculate the future direction of your brand. CMOs take this information to decide on the trajectory of the business with other stakeholders. Does it mean incorporating more innovative technology? Opening up strategic locations? Adding back to the value of your product? The possibilities are endless.