Explore Opportunities for Restaurants, Grocery and C-store Chains to Improve Loyalty Program Capabilities & Experience

Customers have proven they expect and value loyalty programs from the restaurants and retailers they frequent. Brands that don’t offer a digital loyalty program or have loyalty program software are missing out on a major opportunity to capture valuable customer data and along with that – wallet share. 

By bringing customer data together into one unified view through your loyalty solution —your brand can uncover insights and jump on opportunities that your less-informed competitors are only dreaming about.

In order to understand the important factors that drive customer loyalty today, Punchh commissioned a study conducted by Incisiv of 150 convenience, grocery and quick service restaurant leaders to assess their digital capabilities that address 78 program features aligned with key shopper expectations and emerging expectations.

Multi-industry Loyalty Study Highlights

For brands with a loyalty program, membership enrollment is a top priority. Existing shoppers tend to spend 67% more than new shoppers and as such brands have to incur huge costs for new customer acquisition. To attract members brands must take an omnichannel approach to provide easy, quick sign-up opportunities. Program entry is a critical component of a well-designed loyalty program and brands that make this first experience for their customers seamless and convenient are rewarded with greater profitability.

Years ago a mobile app may have been a differentiator for brands, but today it’s table stakes. Not only do QSRs, c-stores and grocery stores need a mobile app to encourage customer acquisitions, it also gives them the opportunity to address consumers’ expectations for a superior omnichannel experience. A branded mobile app gives customers access to personalized offers, loyalty programs, and the ability to pay for purchases, not to mention order online. Features customers have come to expect from their favorite brands. 

Study Spotlight: Customer Expectations Driving Personalization

Over three fourths of shoppers say that loyalty programs should offer personalized rewards. With data-driven experiences gaining prevalence, retailers are trying to increase the use of loyalty data to provide relevant customer offerings like promotions, product recommendations and in-store discounts. Personalization is a major building block of brand loyalty. The research shows that over 70% of today’s shoppers prefer loyalty programs which offer personalized offers as well as the ability to manage loyalty accounts on their mobile apps. Less than 50% of the retailers and restaurants assessed offer this capability. 

Brands need to focus on continuing to increase their level of personalization to keep customers engaged and encourage participation with their business. Customer data is the key to delivering personalized experiences. Brands across every industry need the ability to understand their customers in real-time and execute on their preferences. Yet, according to the Incisiv Report, less than half (46%) of QSRs and only 32% of grocery and 26% of convenience stores provide personalized communications about program membership.

When you take advantage of powerful integration capabilities, the customer “story” told through your data begins to come to life. Each layer of data adds a new dimension to the picture you’re creating, so every data source makes a difference, bringing you that much closer to a more holistic, 360-degree view of each individual customer. And it’s this view of the customer that informs the most effective, ROI-driving marketing initiatives. That’s because you’ll have all of the insights you need to:

• Uncover customer preferences, from what they order and at which locations to whether or not they place online orders and how much they spend.
• Develop effective loyalty offers that are likely to resonate with them and drive action (e.g. sales and brand engagement).
• Deliver personalized marketing campaigns that connect with them “where they’re at” and when they’re most likely to engage.
• Improve your speed and real-time interactions with customers, boosting sales and loyalty and creating a better experience.

As customer loyalty becomes harder to attain, Punch helps brands across QSRs, convenience and grocery not only identify high impact improvement opportunities, but also provides the solutions for their customer loyalty and engagement programs. Learn more about the State of Loyalty Program’s Digital Maturity in the full report.