Going beyond the discount with new approaches to spur brand loyalty

mobilepaymentstoday.com

Retailers seeking to reward shoppers can tap new loyalty program trends that will also attract new customers, boost revenues and provide memorable experiences for all consumers.

So how does a retailers go beyond traditional discounting to provide an enhanced consumer experience?

"It’s all about how the consumer wants to interact with you, so that’s where we focus our marketing efforts," said Megan Flynn, executive vice president of strategy and business development for Excentus’ Fuel Rewards program, during a session Oct. 20 at the Fast Casual Executive Summit in Miami. Fast Casual is a sister publication of Mobile Payments Today and owned by Networld Media Group.

Fuel Rewards is a loyalty marketing company focused on lowering the cost of everyday life. Its cents-per-gallon discounts at gasoline stations provide recency and frequency of redemption.

Flynn gave examples of customers using a Shell fuel rewards program. In a 36-month period, there were 22 million transactions by 6 million Fuel Rewards members who pumped 2.3 billion gallons of gas but also saved $650 million by being a rewards member.   

"The most important customers are the ones you have," Flynn said.

Michael Mabry, COO of Mooyah Burgers, Fries & Shakes, believes in a customized, one-to-one approach when it comes to loyalty programs, with personalized discounts in which his restaurant can learn more about each customer from every interaction.

"As we interact with each guest, they can interact with us, and we get to know more about them," Mabry said.

He used the "relationship goal" as an example. In this approach, people go from strangers, to acquaintances, to friends, to lovers, he explained.

"How do we get people to be raving fans of our brand?" Mabry asked. "Guests come in for the experience."

Mabry emphasized using mobile technology with Mooyah Burgers’ loyalty programs in order to learn more about guests and their preferences and lifestyle. Mobile loyalty programs collects data and that can be invaluable for fast casual operators.

"Talking to a loyal guest is finding out who they are," Mabry said. "Consumers want a one-stop shop on their mobile device. Whatever loyalty program you use, if you can’t use it in the palm of your hand it’s not much good."

The goal for Mike Mohammed, CEO of Chronic Tacos, was to position his restaurants' marketing materials to match the quality of the product, which creates loyalty and value versus the discount or the deal that comes with the loyalty program.

"Deal-seeking guests are loyal to the deal and not loyal to the brand," Mohammed said.

He believes regular, loyal guests will take advantage of a deal if it's presented, but they’re not seeking it out, so Chronic Tacos is giving away profits on these guests.

"We needed our franchisees to know this was good for their business, and for the front-line guys to know it’s important to the customer experience," Mohammed said. "We want to create value for our product versus discounting it. We highlight the quality of the food."

The result of this approach is an increase in the average ticket size, no decrease in the number of tickets and a sales boost when a particular menu item is featured without a discount.

"Being able to treat a guest as an individual is key to any loyalty program," Mohammed said.