| Loyalty Programs | Gift Cards | Comp Programs | Email Solutions
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Finally, after nine years in business, there is definitive proof that loyalty works for Restaurants! What a relief – perhaps my kids will go to college after all!
In new research published by the National Restaurant Association, 9 in 10 respondents said loyalty programs gave them a competitive advantage. And, seventy-seven percent of respondents said loyalty programs helped drive business during the economic downturn. In essence, the research says that loyalty programs indeed work. Here’s a link to the article.
I am excited about this research because it confirms what we’ve been seeing in our client data for years. Coincidently, we recently published a White Paper, “Optimizing Your Loyalty Return” that analyzes how the loyalty program reward structure affects a program’s ROI. The paper is a bit long and I suggest reading it only while highly caffeinated. As a summary, we found that:
- Loyalty member checks were between 7 and 18 percent higher than non member checks.
- Loyalty members visit 15 to 25 percent more frequently than non members.
- All programs studied made money!
What the NRA study and our white paper lack are the stories and anecdotal evidence of how a loyalty program helps your restaurants compete. If you have a good story please share it with me by sending an email or give me a call. When we talk I can regale you with the work we are doing on Social Media and Mobile features!
Cheers,
Andrew
P.S. Congratulations to my 3rd place mini golf team - Amanda, Amy, & Matt C!
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Optimizing Your Loyalty Program Return
There are several factors that contribute to program return, including perceived reward value, buy-more rate, visit rate, member acquisition, and costs. Paytronix created a model that incorporates these influencing factors, basing it on client data. With this model, inputting a variable cost rate derives a reward-optimization curve that predicts the impact that changes in reward levels will have on program return.
Paytronix recommends targeting a zone that promises between 80% and 100% of the program benefits for a core loyalty program, while leaving room to enrich offers during short-term promotions. As an example, a restaurant with a variable cost rate of 40% should set its core loyalty-program reward level at between 11% and 18%.
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Hotmail Changes - A Sign of New Email Challenges
By Michelle Tempesta, Paytronix Email Product Manager
On July 26, 2010, Hotmail made it easier for users to arrange their inboxes so that subscribers can quickly see the emails they want, or need, to see. The two major changes are:
1) User Preference Filters and Views
2) Handling Silent Unsubscribers
Click here for more details on the changes and to read about what you can do to get attention in the inbox despite these changes. |
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Paytronix Rules the Mini Links
Eight foursomes battled it out on the green at Paytronix's first mini golf tournament. The grueling afternoon drove two teams, led by Vance Miller and Scott Walters, to a one-hole playoff. In the Cinderella-story of the day, Matt Shields, our newest engineer, shot a hole-in-one to raise Vance’s team to victory. “I felt the team was really in the zone all over the course. We were able to make shots when we needed them - all the members of the team made a strong contribution to our victory. I’m already bragging about this one!”, said Vance immediately following the competition. Vance’s Mickelson-like team members were Mike Arena, Hong Shao, and Matt Shields.
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| In This Issue |
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- Andrew's Notes
- Optimizing Your Loyalty Program Return
- Hotmail Changes
- Paytronix Rules the Mini Links
- Paytronix Personality |
Paytronix Personality:
Mark Donnellan |
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Mark joined Paytronix shortly after earning his BS in Business Administration from Babson in 2009 where he threw for the Babson Beavers as a left-handed pitcher for four years. The Beavers won the NEWMAC championship and made it to the NCAA tournament Mark’s senior year. He’s been a clutch player for our team supporting several of our customers by helping them launch and manage loyalty and gift card programs. Mark is an excellent troubleshooter and communicator.
When asked why he loves Paytronix, Mark said, “I love Paytronix’s commitment to excellence and being the best at what we do. No one here is ever satisfied with mediocrity. The support team’s selflessness and ingenuity really make our product and our clients’ programs better.”
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| Where Are We |
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The Paytronix Sales Team will be at:
- MUFSO - October 3rd - 5th, Orlando, FL.
- MEG - October 13th - 15th, Scottsdale, AZ.
- Micros Users Conference - October 24th - 26th, Baltimore, MD.
- Xpient Users Conference - October 26th - 28th, Charlotte, NC.
We can't wait to see you there! |
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