Loyalogy, leading provider of loyalty program analysis, data mining, reporting and consulting services to the restaurant industry, announced the results of its latesy U.S. study tracking consumer attitudes and behavior regarding restaurant rewards programs.
“Our latest study provides consistently clear evidence directly from consumers regarding the effectiveness of restaurant rewards programs and the importance of such programs to restaurant guests,” said Dennis Duffy, President of Loyalogy.
The study, based on detailed survey responses to 55 questions among 1,100 consumers from across the U.S., found that:
- Consumers estimate an appealing restaurant rewards programs would increase their visit rate to a particular restaurant by an average of 35%.
- Nearly three-fourths of consumers (73%) report they would recommend a restaurant more to others if that restaurant offered an appealing rewards program.
- 86% of consumers prefer a rewards program with a clearly-defined proposition in which they earn rewards based on spending or visits rather than a program built solely on periodic, surprise free items.
- 43% prefer a program that offers points which convert to rewards which may be spent like cash at the restaurant.
- 43% prefer a program that is based upon visits, such as 8 visits spending a minimum amount each visit would generate a free meal.
- 14% prefer a program that offers surprise free menu items that may be used for a certain period of time with no pre-defined criteria for receiving that free item.
- 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.
- A single rewards program membership covering multiple restaurant brands has significant appeal to consumers. 75% of respondents agreed they would like to have one rewards program membership that was honored at multiple restaurant chains.
- Consumers participate in an average of 3 restaurant rewards programs.
- Consumers are visiting restaurants an average of 13 times per month.
- The 25 to 34 year-old age segment, which includes the oldest members of the Millennial Generation, demonstrates a more intense use of restaurants and rewards programs. In our study we refer to this group as Millennials with Means because they fall into the Millennial age range and have a household income of $75,000 or more.
- Millennials with Means visit restaurants 40% more (18.5 visits per month versus 13 visits per month for the overall population).
- Millennials with Means participate in more than twice as many restaurant rewards programs (6.5 restaurant rewards programs versus 3 restaurant rewards programs for the overall population).
- Millennials with Means are more responsive to rewards programs. They estimate that an appealing restaurant rewards program will yield a visit increase of 43% versus 35% for the overall population.
- Millennials with Means are much more interested in managing all aspects of their rewards program participation with a smart phone app. A total of 57% of this group expressed a desire to do everything using a smart phone app versus 35% for the overall population.
ABOUT THE LOYALOGY CONSUMER RESEARCH STUDY
The Loyalogy consumer research 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 55 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.
- Fast Casual.
- Full-Service Casual.
- Full-Service Fine Dining.
- Visit rates in certain categories such as:
- Coffee shops.
- Traditional delivery/carry out pizza restaurants.
- Gourmet pizza restaurants.
- Take and bake pizza usage from specialty brands and gourmet grocers.
- Gourmet burgers – also referred to as ‘better burgers.’
- Bar and grill.
- Participation rate in restaurant rewards programs.
- Usage of online services (website or mobile app) such as Open Table, Yelp, Urban Spoon and Trip Advisor.
- Usage of online ordering (website or mobile app).
- Relative appeal of 14 different reward program benefits.
- Attitudes about 9 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.
- Demographic characteristics.
Loyalogy was founded by Dennis Duffy who has more than twenty years of experience developing, managing and analyzing customer loyalty programs. Loyalogy provides loyalty program data analysis and data mining services, online dashboard and reporting tools, loyalty program development and consulting services and workshops for companies contemplating a customer loyalty program. For more information, visit www.loyalogy.com.
When it comes to ice cream, it seems that loyalty and rewards programs are almost redundant. Everybody loves ice cream. People write songs about ice cream. The stuff practically sells itself. Nevertheless, the dedicated scoopers at J.P Licks have introduced the Cow Card which serves as both a gift and rewards card for any and all who believe in the “magic of ice cream.”
As a gift card, the Cow Card is fairly standard. Customers can prepay and reload their Cow Card with cash either in person or online. Where the Cow Card stands out is with the auto-reload feature, which will automatically put money on a card once available ice cream funds dip below a preset level (you know, just in case).
When customers use their Cow Card (either as a gift card or as a loyalty card), they will earn one point for every dollar they spend. Customers who earn 50 points at any J.P. Licks location will earn a $5 gift card, which customers can use to buy “ice cream, home roasted coffee, espresso beverages, birthday cakes, anything J.P. Licks!” To sweeten the deal, J.P. Licks even offers a smartphone app for those who prefer to go cardless. For more information, visit the J.P. Licks website.
Kabuki Restaurant has been offering modern Japanese cuisine to customers on the West Coast, and now they have the Red Mask Club to compliment their food and atmosphere. For those unfamiliar with Kabuki Restaurants, the company’s website admirably sums up the mission of the restaurant:
Our mission is to be the leader in the Japanese restaurant industry. We are committed to satisfying our customers completely with the best quality food, excellent service and great value while providing the most pleasant, clean ambiance.
Welcome to Kabuki Japanese Restaurant, the people behind sushi for all mankind. Never tried sushi or Japanese cuisine? Try us and we guarantee you will walk out hooked on our food. That’s what we do best; making non-believers into believers that Japanese cuisine is the new comfort food.
When you walk into a Kabuki you won’t be overwhelmed with Asian decor and music. What you will encounter is a casual atmosphere with today’s hottest music playing, people smiling and our friendly staff welcoming you through the doors. Look for the Red Mask. Come Eat & Drink. Have Fun.
With the Red Mask Club, customers will receive a point for every dollar they spend at Kabuki. Once customers save 500 points, they will receive a $25 “thank you reward.” Customers will also receive periodic emails about promotions, events, and new menu items. For more information, visit the Kabuki website.
Teppanyaki restaurants deserve great applause for their approach to dinner entertainment. Teppanyaki restaurants–more commonly known as Japanese steakhouses in the U.S.– are one of the few places where the entertainment is your dinner. Diners may never have another chance to see a volcano built from fried onions; flipping knives in any other setting is usually condoned, yet here it is celebrated.
Kobe Steakhouse, one of the most recognizable Teppanyaki restaurants in the U.S., has built a reputation for excellent food and dazzling performances by their chefs. To give their customers one more trick to ooh and ahh about, Kobe Steakhouse has introduced Kobe Rewards. The Kobe website outlines the benefits of Kobe Rewards:
10 Rewards Points just for signing up!
1 Reward Point for every $1 spent.
Maximum of 200 points redeemable per check.
For every 200 points accrued, $10 Reward Dollars
will be loaded onto your card for you to redeem on
your next visit. Reward dollars expire after 1 Year.
Rewards members will also receive a $30 birthday reward, which makes the Kobe Rewards program an even better deal for customers. For more information, go to the Kobe Rewards website.
Loyalogy readers will quickly recognize Landry’s Seafood as a member of the Landry’s Select loyalty program. Landry’s Seafood, as the company’s website reports, is the first restaurant in the Landry’s brand and it “remains the flagship restaurant for a company with more than 400 properties around the world.”
As Loyalogy has written many times, the Landry’s Select Club is a comprehensive multi-brand loyalty program. When customers sign up for the Landry’s Select loyalty program, they will receive rewards and benefits at hundreds of locations. From the Landry’s website:
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.
For more information about Landry’s Select Club, visit the Landry’s website.
LOYALTY PROGRAM TUNE-UP SERVICE
The Tune-Up service is something we’ve provided for years but there’s been so much demand for it most recently that we’ve announced it for companies who need such a service but may be unaware that it exists. We find that companies who operate a loyalty program for a period of time reach the point after a year or so at which they need an in-depth assessment of how their program is working with comparisons to industry benchmarks and best practices. The result is a comprehensive report and roadmap that clients find incredibly enlightening and helpful.
The eight-step process requires four to six weeks and involves the following:
- Obtain access to program data. Depending upon how long the program has been in existence, we prefer to have at least two years of member and detailed transaction data.
- Discuss management’s perceptions of the program. Pros and cons along with a discussion of your original expectations regarding the program and the current reality of the program’s performance. Categories include but are not limited to:
- Strategic – how does it contribute to your business?
- Tactical/operational – what operational and/or logistical burdens are created by the program on staff?
- Review/discuss past and current methods of communicating the program to guests:
- Social media.
- Any targeted promotions that may have been deployed to members.
- Conduct in-depth data analysis.
- Interim discussion with management. This allows us to get some reality-checks based on what we see in our analysis and have some discussion about the causes and implications of what we see.
- Final analysis and development of recommendations.
- Recommendations regarding the overall structure of the program.
- Recommendations regarding program communications, operations and rules.
- Recommendations regarding specific data-driven tactical promotions that are likely to profitably generate incremental sales.
- Recommended strategy/process for implementing any significant changes to the program. This includes outlining the potential outcomes from such changes and a step-by-step methodology to maximize the success of the change implementation.
- Final presentation of analysis and recommendations.
- Follow-up changes to analysis and recommendations based upon discussion.
The Cadillac Bar, a member of the Landry Select group of restaurants, has been serving authentic Tex-Mex cuisine for over a quarter century, and their unique brand of Mexican tradition and Texas flair should be enough to keep them in business for the next quarter century. For the Texans lucky enough to live in Houston or Kemah (or for the fortunate tourist who just happens to wander in), the Landry’s Select Club allows customers to earn points and receive rewards just for ordering the Cadillac Bar’s signature dishes and famous margaritas.
Customers will get a dose of Texas hospitality when they sign up for the Landry’s Select Club at the Cadillac Bar; all new members receive a $25 dollar gift certificate that they can use at the Cadillac Bar or at any restaurant in the Landry’s Select Club network. Once customers begin using their Select Club card, they will earn one point for every dollar they spend. Earning 250 points gets members an additional $25 gift certificate.
Members of the Cadillac Bar’s loyalty program will also receive rewards outside of the point system. The Landry’s Select Club gives members a $25 birthday reward, exclusive email offers, priority seating, and discounts on products at Landry’s retail locations. With all of these benefits (not to mention the tequila selection), signing up for the Cadillac Bar’s loyalty program is a no brainer. For more information, mosey on over to the Cadillac Bar’s website.
The Bubba Gump Shrimp Company has always fascinated me. Not every movie gets its own restaurant franchise, but one has to imagine that the idea would make for some successful (or at least entertaining) ventures. Not that you would necessarily want to sign up for the loyalty program at the Soylent Green Cafeteria or Clapet’s Delicatessen, but the restaurants might lure in customers based on camp value alone. In the meantime, the world has Bubba Gump, which has its own (presumably benign) rewards program.
The Bubba Gump Shrimp company is part of the Landry’s Select Club, which has been profiled at various times before on Loyalogy. Members of Landry’s Select Club can take advantage of Landry’s extensive network of participating restaurants and entertainment venues to get the most out of the rewards program.
When customers enroll in the rewards program at The Bubba Gump Shrimp Company (or at any participating Landry’s restaurant), they will receive a $25 dollar gift card that can be used at any participating Landry’s location. Once customers begin using their rewards card, they will earn 1 point for every dollar spent. Customers who earn 250 points will receive a $25 dollar gift card for any participating restaurant.
Members of the Landry’s Select Club will also receive some rewards which are independent of the point system. Club members will receive a $25 birthday gift, special email offers for their favorite restaurants, and 10% off of certain retail purchases at Landry’s restaurants. Select club members can also enjoy preferred seating at participating restaurants, as well as special offers at some of Landry’s entertainment and hospitality locations. For a complete list of perks, visit the Landry’s Select Club website.
Diners in Houston are undoubtedly familiar with Brenner’s Steakhouse and the top quality steaks that they serve. Now fans of Brenner’s have one more thing to be excited about— Brenner’s is part of the Landry’s Select Club.
Loyalogy has covered restaurants that are part of Landry’s Select Club before, and as noted before, customers who sign up for Landry’s Select Club can take advantage of the extensive list of restaurants that are part of the group:
Babin’s Seafood House
Big Fish Seafood Bistro
McCormick & Schmick’s
Morton’s The Steakhouse
Rain Forest Café
River Crab Blue Water Inn
T Rex Café
The Crab House
The Oceanaire Seafood Room
Tower of the Americas
Vic & Anthony’s Steakhouse
Willie G’s Seafood & Steaks
Customers who enroll in the Brenner’s Steakhouse loyalty program will immediately enjoy a $25 welcome gift which can be used at any participating Landry’s restaurant. As customers eat and spend at participating locations, they will receive 1 point for every dollar they spend. Once customers reach 250 points, customers automatically receive $25 in restaurant rewards.
The perks of being a Select Club member don’t stop there. Members also receive a $25 birthday gift, special email offers for their favorite restaurants, and 10% off of certain retail purchases at Landry’s restaurants. Select club members can also enjoy preferred seating at participating restaurants, as well as special offers at some of Landry’s entertainment and hospitality locations. Given the breadth of options available to Landry’s Select Club members, one can expect that customers will be eager to sign up. For a complete list of rewards, as well as the terms and conditions, please visit the Landry’s Inc. website.
At Loyalogy we specialize in loyalty program management with an emphasis on intelligent data analysis to help companies find useful and actionable insights from the tons of data that loyalty programs yield. Over the years we’ve found that many companies have sparse loyalty program metrics they monitor consistently over time. Others produce a variety of spreadsheet reports with loyalty metrics that are e-mailed around their company on a weekly or monthly basis but have no consistent or effective tool for looking at trends over time. To fill this gap we’ve just released the first version of the Loyalty Program Dashboard for Loyalty Rewards Programs.
Our Dashboard tool was developed specifically with location-based loyalty programs in mind. Since we’re heavily focused on the restaurant industry, we were focused on the needs of restaurant loyalty program operators in the development phase. However, this tool is also quite relevant to other location-based business categories that operate customer loyalty programs such as retailers and hotel chains.
The Dashboard consists of four interactive components to help monitor what’s going on with a loyalty program. Two are location based modules that look at location metrics for a specific week or to drill down and review the trend at a specific location over a range of weeks. The other two modules are segmentation based and look at active members for a specific month or a range of months and group those members into a visit-based segmentation.
The metrics available from the Dashboard include:
- New members per location.
- Registrations per location.
- Registration rate by location.
- Spend per visit.
- Visits per member.
- Segmentation percentages – percent of total members and percent of total spending.
The Dashboard tool is accessible online and companies who use the tool may have as many registered users as they need. Instead of searching around for spreadsheets, marketers and managers have one place to go to find all of the historical data in an interactive format. Data is presented in tabular and graphic form with options for “on the fly” interactive sorting and downloading data in CSV format for offline analysis and reporting. We make it easy for marketers to use the tool by handling all of the data imports (we get the data from their loyalty platform/system using credentials provided by the client) and updating the Dashboard on a periodic basis (we have weekly and monthly options).
We have a demonstration version of the dashboard that interested marketers may access to see how the Dashboard tool works in action. It’s populated with 12-months of fictitious data for a fictitious loyalty program. It consists of the basic modules, but most companies need their own variations and customizations of these basic modules or new custom modules. All of these variations and customizations are addressed during the initial system setup phase.
Interested in using the demonstration version? Simply visit http://dashboard.loyalogy.com and set up a free account (name, company, e-mail address, password). You’ll be able to login right away and evaluate the Dashboard to your heart’s content. If you’d like to discuss the Dashboard or any other loyalty program related services or have questions, please feel free to contact us.