Sponsored by Punchh
Takeout and 3rd party partners became a critical part of consumers' routines, with 68% of customers switching to takeout during the pandemic and 53% saying that it will continue to be essential moving forward. While the industry struggled to keep up with this new channel of demand, what became abundantly clear was that outdated and antiquated restaurant systems were not set up to expand with the business. Restaurants that were forced to close permanently were those unable to quickly pivot with their technology.
However, for many restaurants, the pandemic enabled them to integrate solutions into existing platforms and quickly evaluate new technology options. The winners of 2020 were the organizations that embraced a new wave of digital innovation through personalized mobile apps, online ordering platforms, and the latest in loyalty technologies to ensure a contactless guest experience that was truly seamless, convenient, and memorable.
So what were the key learnings coming out of 2020, and what do restaurant brands need to know heading into the back half of 2021?
MORE WAYS TO ENGAGE
The restaurant business has and always will be based on the simple concept of hospitality, but with the new contactless reality, new definitions had to be embraced by operators. At its fundamental core, a good customer experience comes down to a seamless, positive, and rewarding interaction at every touchpoint with a brand. Where once this was confined to the four walls, now guests are expecting the same level of service off of their digital devices, apps, in their social media feeds, and in their loyalty programs.
Thanks to 2020, the restaurant industry is currently in the wake of moving towards adopting an omnichannel loyalty approach that delivers convenience, relevance, and value the customer craves from all channels. And while consumers are slowly starting to dine out once more, insights say that the trend towards digital engagement will continue to be part of the restaurant industry's DNA. In fact, 64% of delivery customers prefer to order directly from a restaurant, while only 18% preferring third-party services. Brands will need to learn how to continue to connect with these "on the go" consumers in a unique way, offering an easy-to-use digital platform, personalizing their engagement, and offering loyalty options customized to their lifestyle. With time being a factor, those that quickly find an integrated solution that resolves these experiential touchpoints will be the brands that thrive amid their competitive space.
LOYALTY AS A NON-NEGOTIABLE
Prior to 2020, most traditional loyalty programs were card-based, coupon-focused, and single channel. They often rewarded for spend over engagement and typically did not award for behaviors that lead to accruable purchases, nor were they real-time. Sound familiar? It did to the industry as a whole, and in 2021, over 42% of restaurants announced that they planned to invest in customer loyalty programs.
In this new reality, many brands are shifting to AI-powered cross-channel loyalty, maximizing the consumer's preferences to interact with the brand in new ways. With the rise of Amazon, Netflix and Starbucks came a desire from customers for personalization and messaging relevant to them. Consumers are open to sharing their information with brands they love, as long as the concept is willing to invest the time in providing that personalized experience. Bottom line, if you are not investing in being top of mind to your customer base, you won't be able to keep up with the 42% that is.
CURATED EXPERIENCES WILL TOP DISCOUNTING
Tight margins and a continually shifting competitive landscape have kept many restaurant marketers chained to the same offers, seasonal LTO's, and outdated campaigns. While once these tactics had proved tried and true, in today's climate, brands need to learn to be more nimble. To truly offer relevant experiences across all of your channels, you need to understand what multiple streams of data are saying about your guest experience and what kind of customization has value to them.
Designing a purchasing journey is one way that brands can pivot from typical couponing. Consumers overwhelmingly have grown away from offers like "a free item for every ten purchased". Instead, they would rather have access to special rewards that "money can't buy" like customized swag, secret menu items, and exclusive dining experiences. You also can map their purchasing behaviors and expose them to new dayparts, merchandising options, or LTO offerings that match their profile. This is the future of your loyalty program, unique, consumer-focused, and engaging.
Contact us today to learn more about customizing a loyalty program with the Punchh Loyalty, Offers, and Engagement platform.
Brittany Maroney is the Sr. Product Marketing Manager for the premier loyalty software solution, Punchh. With 15 years of experience in the restaurant industry, Brittany brings unique insight into the challenges and opportunities of restaurateurs nationally. Based in Scottsdale, AZ has been a published author for over a decade, often contributing thought leadership to national publications and industry trade journals.
