Customer Loyalty: Rewarding Your Customers Larry O’Connor, GRS Development Manager

The choices we make about our food spending are changing rapidly... Restaurants in the western world began on post roads in medieval Europe In the old days, you built your restaurant, served good food, and waited for customers to come. McDonald’s changed the model forever We live a time when consumers “cocoon” - couch potatoes are staying home. When a customer does come to your location, it has to be EASY and REWARDING to do business. More businesses are competing for prepared food dollars all the time Fast Food restaurants Table service restaurants Supermarket grazing bars Convenience stores Book Stores Video stores

Who Are YOUR Customers? Business People On the Go Families looking for a meal cooked to order Singles with a microwave In-house diners Who See Your Place as Theirs “Friends” Groups looking for a place to gather Party organizers with friends in town

What Are YOU Doing To Bring Them Back? Buy 10, get 1 free Buy 9, get 1 free Buy 12, get 1 free See any pattern? Is your “Loyalty” program creating loyalty or just keeping you even with the competition? 10% senior discount is EXPECTED in foodservice today Isn’t buy X get one free just a standard procedure? How can you keep your customers YOUR customers?

Why Do Customers STOP Coming? Bad Service Experience Bad Quality (usually more than once) Economic Concerns BOREDOM! Customers are NOT IMAGINATIVE Have you noticed that MOST of your customers have a “Standard Order”? That’s good for FAST business, but bad over time for repeat business How can you keep your customers YOUR customers?

It’s All About Building Repeat Business Dine-A-Mate booklets “Meal Deals” Sub Clubs The modern restaurateur is looking for a way to get the customer in the door twice a month instead of once a month Ways to encourage you to order a side item or a dessert Ways to get customers to “share ownership” in their restaurants Increasingly, you compete against food operators of many stripes for limited discretionary dollars. Introducing…

The Intelligent Restaurant Not all of your customers fit the same profile. Everyone expects a reward for every X pizzas purchased or $ spent Not everyone that stops by is thinking about your : Appetizers Sandwiches Soups & Salads Wine Lists Store paraphernalia An automated system can do much more than keep track of card punches for you

Customer Loyalty Identify a customer by card, phone number or NAME Summary of each person’s purchasing history Detail history of prior orders The ability to reward your customers based on WHY they come to you Business People – encourage them to buy salads, not sandwiches for lunch Students – encourage them to ADD ON to the small purchases Families – encourage kids’ choices to get parents to bring the family Loyalty - Generate rewards for your loyal customers Based on total dollars spent Based on orders of specific item groups Award Loyalty by suggesting NEW item purchases Discount Sandwiches if you order pizza Discount Salads if you order sandwiches Find Reasons for your Customers to Return Web based tools to get lost customers back Web based tools for “thanks” s to stars

Customer Loyalty What they always get:

Customer Loyalty What can we offer: The “Try Something Different” Award

Customer Loyalty What can we offer: The “Instant Gratification” Award

Customer Loyalty What can we offer: The “Tell Others About Us” Award

Customer Loyalty What can we offer: The “You Spend Too Much Money” Award

How Else Do We Create Repeat Business Smart Phone Ordering for “Get It Quick” Ordering

Communicate with the Loyalists, Redeem the Lost

Gift Cards Mag or Bar Code Card based Loyalty - encourage repeat customers to “tell a friend” with instant award for Gift Card purchase Make it EASY to ALWAYS put the change from a cash payment BACK on the card Gift Cards/Certificates are a powerful way to talk about your store (and get others to do the same) On-line, real time issue and redemption for multi-store operations

Corporate Loyalty/Gift Management For multi-unit operations Each store can be on line Centralized data for multi-unit operations Software will consolidate activity from units Customer adds Customer new activity Gift Card Activity Generate batch mails/ s based on master criteria, usage history, lack of orders In store and above store can be identical OR complementary plans