When this program rolled out a few years ago, it introduced an alternative concept for restaurant rewards programs built around the concept of surprise. Here’s some of the language used to describe the program at MyPanera.com:
MYPANERA IS ABOUT SHOWING OUR APPRECIATION AND REWARDING YOU IN UNEXPECTED AND SURPRISING WAYS.
Enjoying the surprises we’ve sent your way so far? We have lots more planned, and we think you’ll love what’s in store. From complimentary items in the bakery-cafe to exclusive tastings and demonstrations, MyPanera is always thinking of unique ways to thank you.
The more you visit, the more surprises you can get (just when you least expect them)!
Panera Bread Company emphasizes the strategic importance of their rewards program and the data derived from the program. The data is of strategic advantage in understanding guest behavior and using targeted and relevant communication and promotion to drive incremental revenue.
Using some excerpts from Panera’s 2011 annual report, following are examples of Panera emphasizing the strategic important of their rewards program – not just another short-term promotion:
“Specifically in 2011, we benefitted from our investments in five key areas: the quality of our food, our increased marketing expenditures, the rollout of our MyPanera loyalty program, the growth of our catering business, and the quality of our operations and our people.”
“The real value of the loyalty program is the customer data that we have been able to collect. We have begun testing the use of this data to increase frequency and are beginning the journey of moving to true one-to-one marketing. For example, we are creating individual reward tracks for all 9.5 million members of our loyalty program, and expect to send to our customers more than 6.5 million unique e-mails each month with dynamic content that changes based on their interests and buying patterns.”
Restaurant companies participating in the loyalty/rewards space or contemplating an entry into that space would be wise to study the strategic role of a loyalty/rewards program as an integral and potentially central element in their overall marketing mix.
SEE WHAT’S HAPPENING RIGHT NOW AT PANERA – via Twitter
For more information on MyPanera Rewards, visit the MyPanera Rewards website.
LevelUp is the free app that enables you to pay with your phone when you place an order at certain restaurants. Here’s an example of LevelUp and a restaurant adding value by creating a promotional offer that contains a rewards component.
Use LevelUp at Café de Boston and you’ll get 10% cash back when you spend $100. New customers receive $2 for your first time visit to Café de Boston.
Cafe De Boston is an all-purpose cafeteria for the “die hahhd” professional in Boston. When your feathers are ruffled from an episode of downtown parking wars, we’ve got two words for you: oatmeal bar. Served with fresh toppings like fruit, granola and almonds, the stuff is known to cure even the most severe cases of commute rage. When you’ve got 5 minutes to turn an afternoon meeting into a birthday celebration, Cafe De Boston also has your back with beautifully decorated cakes to make you look like the golden co-worker. And when the wind whips through the financial district and you need something to make you feel whole again, hit the build-a-bowl pasta station. With Cafe De Boston in their arsenal, the tie and pencil skirt crowd is bound to conquer!
Asheville, NC, January 15, 2013 – Loyalogy, provider of loyalty program consulting and analysis services to the restaurant industry, announced the results of its first annual LoyaltyPulse U.S. study tracking consumer attitudes and behavior regarding restaurant rewards programs. [Click here to view and/or download the study].
“The LoyaltyPulse study provides clear evidence directly from consumers regarding the effectiveness of restaurant rewards programs and the value associated with using the rewards program data to tailor and target guest e-mail communication,” said Dennis Duffy, President of Loyalogy.
The LoyaltyPulse study, based on detailed survey responses to 50 questions among 1,124 consumers from across the U.S., found that:
- Consumers estimate a restaurant rewards programs would increase their visit rate to a particular restaurant by an average of 35%.
- Nearly two-thirds of consumers (65%) report they would recommend a restaurant more to others if that restaurant offered an appealing rewards program.
- Four out of five consumers prefer a rewards program with a clearly-defined proposition in which they earn points for rewards than a program built solely on periodic, surprise free items.
- Consumers desire a simple reward program enrollment process in the restaurant and would prefer to supply additional information online after they have left the restaurant.
- Although consumer wallets are bulging with plastic cards, 60% of respondents stated that they don’t mind carrying a membership card for a rewards program if it’s necessary.
- While only 10% of respondents have paid a fee to join a restaurant rewards program, fully 50% state they would be willing to do so if the program offered adequate value.
- A single rewards program membership covering multiple restaurant brands has significant appeal to consumers. 73% of respondents agreed they would like to have one rewards program membership that was honored at multiple restaurant chains
ABOUT THE LOYALTYPULSE STUDY
The LoyaltyPulse study was conducted through an online survey of U.S. consumers between the ages of 25 and 65 with household incomes of $75,000 or more. The respondents were selected from an online research panel provided by The Sample Network. The survey consisted of 50 questions in categories that include:
- Restaurant visit rate and spending, including breakdown of those who visit restaurants just for pleasure or both pleasure and business.
- Participation rate in restaurant rewards programs.
- Relative appeal of 15 different reward program benefits.
- Attitudes about 12 different statements regarding carrying membership cards, using a phone number as identifier and receiving promotional e-mail messages from rewards programs.
- Attitudinal statements regarding the impact of rewards programs on behavior.
- Likely visit rate changes based upon different levels of rewards.
- Whether or not consumers have paid an enrollment fee to join a restaurant rewards program and what would motivate the payment of an enrollment fee.
- Demographic characteristics.
For more information about the LoyaltyPulse study, visit www.loyaltypulse.com.
Founded by Dennis Duffy, with more than twenty years of experience developing, managing and analyzing customer loyalty programs, Loyalogy provides loyalty program development, consulting, project management and database analysis services to restaurant companies. For more information, visit www.loyalogy.com.
Dennis Duffy – President, Loyalogy, Inc. at 828-333-5860 or firstname.lastname@example.org.
The Palm’s 837 Club is one of those restaurant loyalty programs that have been around so long that it’s been a model for other restaurants to use when contemplating and developing their own restaurant loyalty programs. The 837 Club is one of the early models that proved the viability of membership fees in rewards programs.
From the company’s website:
We often say that The Palm isn’t a chain – it’s a family. This is true for our staff members, our customers, and for the extended family of loyal patrons who participate in The Palm’s 837 Club.
The 837 Club is our way of giving back to the guests who keep coming back. Once you become a member, you’ll receive Club Points every time you visit The Palm that can be redeemed for special rewards ranging from a complimentary dessert to a weekend getaway for two. A one-time fee of $25 earns you membership and a $25 gift card towards your next Palm meal or happy hour bar visit. You’ll also receive our members-only newsletter, Just Rewards, an insider’s guide to The Palm featuring the latest news plus members only offers and events.
The structure of the program is a classic points to rewards model, in which points are banked and converted to rewards when the member decides to convert to rewards. You can save the points, you can redeem the points. Some members in programs like this accumulate so many points that they need high-end rewards as a target to save for. And there is no shortage of those high-end rewards in the 837 Club. Under the current program structure you can get anything from an appetizer or dessert at the 250 point level to a $200 Tiffany and Company Gift card at the 2,000 point level to a 4-day/3-night trip for two to France’s Baron Eric De Rothschild’s private chateau at the 150,000 level.
SEE WHAT’S HAPPENING RIGHT NOW AT THE PALM – via Twitter
For more information, visit The Palm 837 Club Website.
DOWNLOAD A PDF OF THE LOYALTYPULSE STUDY
Click here to download a PDF of the LoyaltyPulse Study.
The pursuit of long-term relationships with customers has been a focal point of business leaders for years. The restaurant industry is arguably the most vigorous and successful user of loyalty programs, generating increment visits and spending by boosting share of customer. And don’t forget the most important by-product of a loyalty program: mission-critical customer transaction data that provides a deeper understanding of customer behavior and the ability to communicate in a more relevant manner while measuring the effectiveness of marketing campaigns.