Category Archives: Loyalty Marketing

Dunkin’ Donuts to Rollout Loyalty Rewards Program

Dunkin Donuts Logo




News hit today about the intentions of Dunkin Donuts to rollout a national customer loyalty program sometime in 2013. Here’s an excerpt from the Wall Street Journal:

Dunkin’ Brands Group Inc. (DNKN) plans to launch a loyalty-rewards program at Dunkin’ Donuts later this year, a few paces behind Starbucks Corp. (SBUX) and Panera Bread Co. (PNRA), which have seen significant sales boosts from offering frequency perks in the past couple years.

Last year, Dunkin’ came out with a mobile-payment application, allowing customers to pay with their Dunkin’ Donuts account using their smart phones. The app, which was intended to preface a new loyalty program, was a major step in Dunkin’s new digital-marketing strategy.

“The real power of mobile and loyalty is the one-to-one marketing that they can enable,” said Chief Executive Nigel Travis. “I believe they will be significant drivers of our growth in the next few years.”

Dunkin’ Brands, which also owns the Baskin-Robbins ice-cream chain, reported that sales at established U.S. locations of both chains exceeded expectations in the fourth quarter. The company’s shares rose 3% to $36.88, nearly double the stock’s price of its initial public offering in July 2011.

A few years ago, Dunkin’ offered various rewards for using a Dunkin’ prepaid card through a partnership with American Express, such as adding $5 to customers’ Dunkin’ cards for every $25 that they automatically loaded using their Amex cards.

In April 2011, that was replaced with Dunkin’s first national loyalty program that was a bit less enticing, giving customers $1 for every $20 they spent on a Dunkin’ Donuts prepaid card, and double the reward if the card was auto-recharged at least once a month.

That program was phased out at the end of 2011, in anticipation of launching one compatible with its new mobile app and the new sales technology that it put in its stores.

“While it’s too early for me to outline in detail what you’ll see from us, I can tell you we will have a robust loyalty program focused on driving changes in consumer behavior in frequency, ticket, loyalty and how they pay,” Mr. Travis said.

We know from our nationwide consumer study on attitudes and behavior relating to restaurant loyalty/rewards program (LoyaltyPulse) that effective restaurant rewards programs may generate incremental sales of 35%. But sales generated by a loyalty program are just one aspect of the benefits of loyalty marketing. The data derived from restaurant loyalty programs becomes a strategic advantage in understanding guest behavior and using that data to deliver promotions that are more relevant to each guest, making those promotions far more effective.

Note this statement from CEO Nigel Travis:

The real power of mobile and loyalty is the one-to-one marketing that they can enable. I believe they will be significant drivers of our growth in the next few years.

No surprise from our perspective. Our proprietary research shows that consumers seek relevant promotion with respect to restaurant loyalty/rewards programs. In our nationwide survey of 1,124 consumers about their attitudes about loyalty programs:

• 69% state they would like to receive e-mails with discount offers on specific food and beverage items they have ordered in the past.
• 66% state that they would like to receive e-mails with offers of value relating to a rewards program in which they participate.

Also, we’ve previously seen and reported on comments made by Panera regarding the impetus behind the MyPanera Rewards Card program. This is an excerpt from Panera’s 2011 annual report:

“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.”

Watch for more developments in the restaurant loyalty/rewards space. Companies large and small will make the move, knowing restaurant rewards programs are not simply tactics, but strategies that, when approached properly and executive well, become ‘game changers’. Got game?

For more information, read the full article at the Wall Street Journal.

WHAT’S HAPPENING RIGHT NOW AT DUNKIN’ DONUTS?


Champps Americana MVP League Rewards












A little background on Champps:

The first Champps was founded in St. Paul, Minnesota in 1984 by midwestern restaurateur Dean Vlahos. Opened originally under the name Concourse 7, Vlahos’ restaurant was founded with a vision of providing made-from-scratch American food with uncompromising service. Dean oversaw the chain as it grew from a single restaurant in 1984 to selling the chain to Daka International in the mid-90s. Between the late 90s and 2000s, Champps grew to its current size of more than 50 locations nationwide, all-the-while continuing to provide the scratch menu and signature service that define Champps.

Champps American’s MVP League offers a straightforward, easy to understand value proposition. Earn one point per dollar spent and each time you accumulate 100 points, those 100 points convert to a $10 reward. Members may join the program in the restaurant or online.

For more information, visit the program website.

WHAT’S HAPPENING RIGHT NOW AT CHAMPPS


BJs Premier Rewards












BJs Premier Rewards is not your garden variety restaurant loyalty/rewards program.  The program includes some unusual features and we’re very BJs Card interested in watching this program carefully over time.  Some of the atypical features include redemption options that go beyond spending rewards in the restaurant (restaurant options include several choices – FREE Pizookie®, $10 and $25 off meals and “other BJ’s Experiences”).

BJs Premier Rewards also includes options to redeem for merchandise (the website states merchandise, but when we drilled down all we see are options to redeem points for FREE Pizookie®, $10 and $25 off meals and free admission to a VIP table at a BJs Beer Dinner) and to participate in online auctions. On the earning side, members may earn in the typical manner – in the restaurant – but also by engaging in social media (Facebook, Foursquare, Twitter) and purchasing BJs gifts and merchandise (caps, shirts, glasses).

For more information about BJs Premier Rewards, visit the program website.

Encouraging Results from Loyalogy’s LoyaltyPulse Study – Good News for Restaurant Companies

Happy Couple Enjoying a Meal and Earning Restaurant Rewards

We’ve received quite a bit of positive feedback regarding the results of our LoyaltyPulse research study which tracked consumer attitudes and behavior regarding restaurant loyalty/rewards programs. This is one of the latest bits of interpretation and feedback from Loyalty Truth and its principal Bill Hanafin, a loyalty-marketing veteran. Here’s an excerpt from the Loyalty Truth piece:

The challenges of creating customer loyalty in the restaurant business – especially the quick serve sector – are many. Businesses with high frequency visit environments lend themselves to traditional loyalty program structures, but a small average transaction size means that awarding a customer with a 1-5% rebate doesn’t add up to much. That’s part of the reason so many restaurant chains still rely on a punch card style solution for customer loyalty. Add in the complexities of a franchise system, where multiple business owners have to be convinced of the same customer engagement and retention plan, and even the a well prepared strategy can run into low adoption rates across the business.

Given the challenges, it was heartening to read the results of the LoyaltyPulse survey, which tracked consumer attitudes towards loyalty programs in the dining sector. The report was sponsored by Loyalogy, a provider of loyalty program consulting services and its principal, Dennis Duffy, is a highly credible source of knowledge and experience in the industry.

Read the full article at Loyalty Truth »

Restaurant Loyalty/Rewards Programs as a Consistent Anchor in Restaurant Marketing

Experts in Restaurant Loyalty Programs

A recent article in Restaurant Hospitality points out that restaurant loyalty programs are effective at generating incremental business. We know from our research and experience that loyalty programs are an important ‘anchor’ in a restaurant marketing mix. There is always a place for promotions and depending upon the brand, deals. But promotions and deals in the absence of a longer-term approach to marketing that also generates behavior insights (visits and spending) leave one wondering ‘what did that do for us?’ and ‘what’s next?’.

An excerpt from the Restaurant Hospitality piece:

Full-service operators know that short-term specials and deals will give their restaurants a temporary revenue boost. But findings from a new study indicate that restaurants can use tried-and-true customer loyalty programs to build and retain a customer base without relying on costly dollars-off promotions.

Read the full story at Restaurant Hospitality Here ».

Hard Rock Rewards

Hard Rock Rewards Logo




An integrated loyalty/rewards programs that provides opportunities to earn at participating resorts, hotels and cafe’s, potential room upgrades in hotels, potential priority seating at cafe’s and more. This program just launched at the beginning of 2013. Here’s an excerpt from the press release at PR Newswire [click here to read the full release].

Hard Rock International – with locations from London to New York, Singapore and Dubai – today announced the launch of its new global loyalty program, Hard Rock Rewards™, a unified guest affinity program developed to recognize and reward Hard Rock’s dedicated fans with exclusive privileges, when they stay and play at participating Cafes, Rock Shops, Hotels and Casinos worldwide. With two levels of participation available, Hard Rock fans have the choice of joining Hard Rock Rewards for free, or upgrading to the VIP level of membership for exclusive perks and benefits fit for a rock-star. All new members have the chance to win one of a kind experiences that rock, such as an all-expense paid trip to Hard Rock Hotel Orlando – to enjoy the Hotel California-inspired vibe and VIP access to Universal Studios theme park.

There’s a free level in Hard Rock Rewards and a VIP level that requires a $24.99 fee. Below is a comparison chart that provides a snapshot of the benefits associated with the free and VIP levels:

Hard Rock Rewards Comparison Chart

For more information, visit the Hard Rock Rewards website.

SEE WHAT’S GOING ON AT HARD ROCK RIGHT NOW – via Twitter


Landry’s Select Club










Landrys Select Club Banner

This is the epitome of the multi-brand loyalty/rewards program, spanning venues in the restaurant, hospitality, entertainment and gaming categories. Landry’s Select Club features a value proposition that is integrated with all brands, allowing consumers to enjoy the benefits in many locations around the United Stated.

LANDRY’S SELECT FEATURES/BENEFITS (from the Landry’s Select Website)

We have a saying at Landry’s that “there are no spare customers.” We value each and every guest and appreciate your loyalty. We do everything we can to ensure that you are taken care of every time that you visit any one of our participating restaurants in 31 states across the country.

As a member of the Landry’s Select Club, here are some of the benefits you will receive.

  • Earn Points – 1 point for every dollar spent at participating Landry’s locations.
  • Welcome Reward – $25 Reward automatically added to your account upon registration.*
  • Birthday Reward – $25 Reward which can be redeemed during your birthday month.
  • Priority Seating – Receive seating privileges, seven days a week.
  • Retail Benefits – Receive a 10% discount or earn points on your purchases (benefit based on retail location)
  • Gift Cards – Earn points when you purchase gift cards.
  • Online Access – 24-hour access to your account to review transactions, point balances and rewards.
  • Email Notifications – You will receive information about rewards and other important club news.
  • Faster Delivery of Rewards – Rewards are automatically added to your account, so no more paper gift certificates!
  • Member-only access to special offers and promotions, including our entertainment and hospitality venues.

We want to make it easy for anyone to enroll and enjoy being a Landry’s Select Club member.

To enroll at a restaurant, ask a host, hostess or server for a Landry’s Select Club card. A $25 enrollment fee will be charged to you at the restaurant at the time you receive your card. Once you are given your card, you can start earning points immediately!

A $25 Welcome Reward will be added to your account once it has been registered online through the Landry’s Select website.

BRANDS IN LANDRY’S SELECT CLUB

Aquarium Restaurants
Babin’s Seafood House
Big Fish Seafood Bistro
Brenner’s Steakhouse
Bubba Gump
Cadillac Bar
Charley’s Crab
Chart House
Claim Jumper
Gandy Dancer
Golden Nugget
Grand Concourse
Grotto
Harlow’s
Kemah Boardwalk
La Griglia
Landry’s Seafood
McCormick & Schmick’s
Meriwether’s
Morton’s The Steakhouse
Peohe’s
Pleasure Pier
Rain Forest Café
River Crab Blue Water Inn
Rusty Pelican
Saltgrass Steakhouse
Simms Steakhouse
T Rex Café
The Crab House
The Oceanaire Seafood Room
Tower of the Americas
Vic & Anthony’s Steakhouse
Willie G’s Seafood & Steaks

For more information, visit the Landry’s Select Website.

Morton’s the Steakhouse – Landry’s Select Club

Mortons the Steakhouse Logo




Morton’s has a great reputation and legacy in the fine steakhouse category.  Along with a diverse collection of other restaurants in the Landry’s family, Morton’s operates within the Landry’s Select Club – a restaurant loyalty/rewards program. With such a broad assortment of restaurant brands in the fold, the Landry’s Select Club offers what we know from research (The LoyaltyPulse Study) to be a very appealing proposition to consumers: the opportunity to earn rewards using one program across many restaurant brands.

Landry’s Select is a fee-based program. Members pay $25 to join and receive a $25 reward immediately. Membership fees are effective at gaining commitment to a restaurant rewards program. When members are considering their choice for a dining event, the fact that they have paid a fee to join a rewards program at one restaurant is a considerable factor when making that choice. It serves as one of the ‘tie-breakers.’

We also know from our research (The LoyaltyPulse Study) that just 10% of consumers have paid a fee to join a restaurant rewards program. However, among those consumers who dine for business (either business exclusively or business and pleasure), nearly one in four have paid a fee to join a restaurant rewards program (22%). Consumer acceptance rate increases with respect to the payment of an enrollment fee if there is an immediate incentive in place.

WHAT’S HAPPENING AT MORTON’S NOW?


MORTON’S and LANDRY’S SELECT CLUB – From the Website

We have a saying at Landry’s that “there are no spare customers.” We value each and every guest and appreciate your loyalty. We do everything we can to ensure that you are taken care of every time that you visit any one of our participating restaurants in 31 states across the country.

As a member of the Landry’s Select Club, here are some of the benefits you will receive.

  • Earn Points – 1 point for every dollar spent at participating Landry’s locations.
  • Welcome Reward – $25 Reward automatically added to your account upon registration.*
  • Birthday Reward – $25 Reward which can be redeemed during your birthday month.
  • Priority Seating – Receive seating privileges, seven days a week.
  • Retail Benefits – Receive a 10% discount or earn points on your purchases (benefit based on retail location)
  • Gift Cards – Earn points when you purchase gift cards.
  • Online Access – 24-hour access to your account to review transactions, point balances and rewards.
  • Email Notifications – You will receive information about rewards and other important club news.
  • Faster Delivery of Rewards – Rewards are automatically added to your account, so no more paper gift certificates!
  • Member-only access to special offers and promotions, including our entertainment and hospitality venues.

We want to make it easy for anyone to enroll and enjoy being a Landry’s Select Club member.

To enroll at a restaurant, ask a host, hostess or server for a Landry’s Select Club card. A $25 enrollment fee will be charged to you at the restaurant at the time you receive your card. Once you are given your card, you can start earning points immediately!

A $25 Welcome Reward will be added to your account once it has been registered online through the Landry’s Select website.

For more information, visit the Morton’s website or the Landry’s Select Club website.

Del Frisco’s Double Eagle Steak House Rewards

Del Frisco's Double Eagle Steak House Logo




Here’s a description of Del Frisco’s from the restaurant’s website:

Del Frisco’s Double Eagle Steak House planted its roots in Dallas more than 20 years ago. We embody the rich tradition of fine American steak houses, amazing guests through our impeccable chef-driven cuisine, extensive award-winning wine list and unparalleled hospitality. We offer our guests an unforgettable experience in a stunning, energetic atmosphere perfect for special occasions, business affairs or a grand night on the town.

Del Frisco’s is part of the Del Frisco’s Restaurant Group which also includes Sullivan’s Steakhouse and Del Frisco’s Grille. This restaurant loyalty/rewards program that spans three brands charges a one-time membership fee. A couple of important notes about loyalty program membership fees:

  • Members pay a one-time fee to join.  Membership fees are effective at gaining commitment to a restaurant rewards program.  When members are considering their choice for a dining event, the fact that they’ve paid a fee to join a rewards program at one restaurant is a considerable factor when making that choice.  It serves as one of the ‘tie-breakers.’
  • We know from our research (The LoyaltyPulse Study) that just 10% of consumers have paid a fee to join a restaurant rewards program.  However, among those consumers who dine for business (either business exclusively or business and pleasure), nearly one in four have paid a fee to join a restaurant rewards program (22%).
  • We also know that consumer acceptance rate increases with respect to the payment of an enrollment fee if there is an immediate incentive in place.  That immediate incentive exists in this program in the form of a $25 dining credit issued electronically once the member has paid the $25 enrollment fee and enrolled.

With three different restaurant brands participating in this program (Sullivan’s Steakhouse, Del Frisco’s Double Eagle Steak House, Del Frisco’s Grille) the Del Frisco’s Restaurant Group has the opportunity to drive incremental business beyond a single-brand program. We know from our research (The LoyaltyPulse Study) that 73% of consumers find a program that spans multiple brands to be appealing.

PROGRAM DESCRIPTION FROM DEL FRISCO’S WEBSITE

Everyone likes to get something back. As a Del Frisco’s Restaurant Group Rewards Program member, you get to do just that. Simply present your card each time you dine at either Sullivan’s Steakhouse or Del Frisco’s Double Eagle Steak House to earn rewards points. For every dollar spent, you will receive a rewards point. Once accumulated, points can be redeemed for Rewards Dollars, which can be spent in any Sullivan’s, Del Frisco’s or Del Frisco’s Grille across the country.

Our rewards program is just another way we take care of our loyal guests. Sign up today for a one-time fee of $25 and we will load your Rewards Card with $25 in Rewards Dollars upon registration.

TIERS BASED UPON TWELVE-MONTH POINTS EARNING

Levels are calculated monthly and adjusted every 12 months. Points can be accumulated at every Sullivan’s and Del Frisco’s restaurant location.

Silver Card Level – 10,000 Points
Once a valued guests reach this level, they become Silver members. Silver members will receive 1.1 points for every dollar spent.

Gold Card Level – 25,000 Points
Once a valued guests reach this level, they become Gold members. Gold members will receive 1.2 points for every dollar spent.

Platinum Card Level – 50,000 Points
Once a valued guests reach this level, they become Platinum members. Platinum members will receive 1.3 points for every dollar spent.

REWARD REDEMPTION OPTIONS

350 points – $25 Reward
700 points – $50 Reward
1,400 points – $100 Reward
1,850 points – Dinner for 2 Sullivan’s ($130 Value)
2,800 points – Dinner for 2 Del Frisco’s ($200 Value)
3,700 points – Dinner for 4 Sullivan’s ($260 Value)
5,600 points – Dinner for 4 Del Frisco’s ($400 Value)
20,000 points – Sullivan’s Wine Dinner for 10 ($1,400 Value)
40,000 points – Del Frisco’s Wine Dinner for 10 ($2,800 Value)

For more information, visits the rewards section at the Del Frisco’s website.

WHAT’s GOING ON AT FRISCO’S RIGHT NOW?