California Pizza Kitchen (CPK) just announced their new customer loyalty program called “Pizza Dough.” The program has an easy to understand value proposition – spend $100 at CPK and earn $5 in “Pizza Dough” that you can apply towards the payment of your check (with certain exclusions). A simple, easy to understand proposition is an important characteristic to maximize consumer acceptance – one of the key findings of our national consumer loyalty study – LoyaltyPulse.
CPK has jumped in along with a growing number of casual dining restaurants that realize the value of a customer loyalty program as a “tie-breaker” when guests have multiple options, all of which are appealing, and need something to tip the scales in favor of one brand over the others. That’s what effective loyalty programs can do. Pizza Dough also allows CPK to understand guest behavior at the level that enables the development and measurement of effective targeted marketing programs (read more about this in our Roadmap for Sagging Restaurant Sales).
This program has a bit of a cautious feel. The value proposition (spend $100 and receive $5 – a 5% face value proposition) is lower than what we see in many casual dining programs. Also, the Pizza Dough Rewards expire in 90 days. In many programs, rewards survive for a year or more. There is a tipping point with the value proposition. Some companies launch their first loyalty program with a cautious reward structure and, while we are strong advocates of carefully considered action, an excessively cautious value proposition may generate cautious response on the part of consumers.
Read more at the California Pizza Kitchen Pizza Dough Rewards website.
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