More than just the basics. This puts a lot of pressure on industries that have traditionally relied solely on the quality of their products to make people happy—like the restaurant industry.
At 4% of U.S. GDP in 2019, the restaurant industry is a significant part of the economy. The problem is that people are always behaving in new ways. Adopting technology and digital communication has been a big part of a restaurant operator’s strategy to engage them, but with limited resources, upfront costs and thin margins, it can be hard to choose the right approach to keep them.
That’s where loyalty and rewards programs come in. They help businesses attract and keep the attention of customers who have more and more choices every day. But expectations for those programs are changing, too. Especially in today’s climate, there are many reasons to add a loyalty and rewards programs to your restaurant business. The primary reason? Consumers are seeking personalized, 1:1 interactions, especially from their favorite brands. And delivering on them is key to success.
Several factors have influenced this change:
- Industry trends - External conditions and dynamics are creating an urgency for operators to adapt their customer engagement model.
- Technology - Cutting edge companies are investing in algorithms and data collection methods for more precise marketing to their customers.
- Consumer behavior shifts – People want products tailored to their personal tastes. This helps them sift through the noise from all the advertising and messages that are coming at them every day.
- Competitive pressures - Practices across all industries are compelling operators to use tactics that differentiate their business from all the traditional and disruptive competitors in the industry.
Marketers spend a lot of time trudging through data forests trying to find insights into their customer’s lifecycle. Some spend more time analyzing spreadsheets than connecting with their guests. To compete, restaurant operators must cut through the noise and expose actionable information from their raw data—they have to understand what they’re looking at and how to use it to create personalized experienced that deliver value to consumers and results to the business.