how customer loyalty is broken — and how mobile can fix it (or make it worse)

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© THANX, INC. ALL RIGHTS RESERVED © THANX, INC. ALL RIGHTS RESERVED Why Customer Loyalty is Broken And How Mobile Can Fix It 2016 Restaurant Leadership Conference Wednesday April 6, 2016

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Page 1: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED © THANX, INC. ALL RIGHTS RESERVED

Why Customer Loyalty is Broken And How Mobile Can Fix It 2016 Restaurant Leadership Conference Wednesday April 6, 2016

Page 2: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

Zach Goldstein

CEO and Founder

Mindy Kaplan

Senior Director of Marketing

Page 3: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

1. The modern restaurant guest 2. Why restaurant customer loyalty is broken

3. How to fix restaurant customer loyalty

4. Key takeaways for restaurants looking to build loyalty

5. Analysis and Q & A

DISCUSSION FLOW

Page 4: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

MODERN RESTAURANT GUESTS ARE “PROMISCUOUS”

More restaurant benchmarks at thanx.com/marketing-report

~2/3 of restaurant sales comes from just 25% of

customers

62%19%

14%

5%

TOP

2ND

3RD

BOTTOM

69% of loyal restaurant guests haven’t returned in

the last 4 months

SUPER LOYAL

REGULARS

AT-RISK

Page 5: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED MOBILE IS TAKING OVER

Page 6: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED © THANX, INC. ALL RIGHTS RESERVED

Tremendous growth has put 1.5 million + unique apps in the App Store…

26Average number of

apps on phone:

84%Time spent in top 5

apps on phone:

…But you have to stand outJul$'08$

Sep$'08$

Apr$'09$

Jul$'09$

Nov$'09$

Mar$'10$

Jun$'10$

Oct$'10$

Jan$'11$

Jun$'11$

Oct$'11$

Mar$'12$

Jun$'12$

Sep$'12$

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May$'13$

Jun$'13$

Oct$'13$

Jun$'14$

Sep$'14$

Jan$'15$

Jun$'15$20152014201320122011201020092008

Page 7: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

1. The modern restaurant guest

2. Why restaurant customer loyalty is broken

3. How to fix restaurant customer loyalty

4. Key takeaways for restaurants looking to build loyalty

5. Analysis and Q & A

DISCUSSION FLOW

Page 8: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

TRADITIONAL LOYALTY PROGRAMS ARE FLAWED

Friction-filled customer experience

Uncertain basic program metrics

Too much hassle to maintain program

Page 9: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

GOALS FOR A NEW LOYALTY PROGRAM —  ONE THAT ACTUALLY BUILT LOYALTY

Effortless for customers

(and on mobile)

Actionable data — more than just

rewards

Zero integration, seamless operation

across systems

Page 10: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED © THANX, INC. ALL RIGHTS RESERVED

THIS IS NOT EFFORTLESS

Page 11: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED © THANX, INC. ALL RIGHTS RESERVED

CHECK -INS?

Page 12: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED © THANX, INC. ALL RIGHTS RESERVED

QR CODES?

Page 13: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED © THANX, INC. ALL RIGHTS RESERVED

RECEIPT PHOTOS?

Page 14: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

NO WONDER APP STORE RATINGS ARE SO BAD

Across a random sample of 150 branded restaurant apps, the average star rating was

2.9

Page 15: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

1. The modern restaurant guest

2. Why restaurant customer loyalty is broken

3. How to fix restaurant customer loyalty

4. Key takeaways for restaurants looking to build loyalty

5. Analysis and Q & A

DISCUSSION FLOW

Page 16: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

INTRODUCING —  THE LOU MALNATI’S BRANDED APP

Page 17: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

AN APP YOU DON'T HAVE TO OPEN

Page 18: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

3 PILLARS OF LOYALTY SUCCESS

EFFORTLESS CONSUMER EXPERIENCE

ACTIONABLE DATA

NO HASSLE FOR I.T.

Page 19: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

NO POINT-OF-SALE INTEGRATION AND NO ADDITIONAL HARDWARE

Page 20: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

ACTIONABLE DATA VIA 1-CLICK MARKETING CAMPAIGNS

Page 21: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

1. The modern restaurant guest

2. Why restaurant customer loyalty is broken

3. How to fix restaurant customer loyalty

4. Key takeaways for restaurants looking to build loyalty

5. Analysis and Q & A

DISCUSSION FLOW

Page 22: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

KEY TAKEAWAYS FROM LOU MALNATI’S

Effortless for you, effortless for your customers

Actionable data

Marketing accountability

Page 23: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

THE CUSTOMER LOYALTY RACETRACK

Learn more at tinyurl.com/thanxRLC

Make it easy to get out of the starting blocks

SIMPLE

1

Eliminate the hurdles all the way around the track

EFFORTLESS

2

Keep the finish line well lit

TRANSPARENT

3

Ensure that the race is the right distance

ATTAINABLE

4

Make sure the medal is big enough

MOTIVATING

5

Page 24: How Customer Loyalty Is Broken — And How Mobile Can Fix It (Or Make It Worse)

© THANX, INC. ALL RIGHTS RESERVED

[email protected]

Increase Sales. Improve Customer Satisfaction.

Effortlessly.