25 September 2018 – London, UK: Tiered loyalty schemes serve up almost 3 times more value per customer for food and beverage (F&B) brands when compared to ‘one off’ email offers or discounts according to new data from Coniq, Europe’s leading provider of CRM and loyalty solutions.
The research, which analysed over 169,000 transactions made by 57,000 loyalty customers across bars, grab and go F&B outlets and restaurants, identified that brands offering tiered loyalty schemes, which unlock rewards based on levels of spend, drove 2.6 times more in average yearly spend (£58.36) than those driven by one time offers (£22.29).
Coniq suggests that the higher quality of customer data and insight that loyalty schemes are able to gather, allows for greater levels of personalisation enabling brands to tailor rewards based on demographics, buying behaviours and key information such as a customer’s birthday or preferred time of day.
Even simple loyalty mechanics such as traditional stamp cards were found to perform significantly better than blanket, discount-led strategies. The research identified that stamp cards led to more than double the visitor return rates when compared to ‘one off’ discounts, with tiered loyalty schemes again the most successful mechanic at 2.3 times higher.
Sean Curtis, Chief Commercial Officer at Coniq, explained: “Our latest research found that 61% of customers who sign up to a database never return to that restaurant, which starkly highlights the importance of identifying and targeting the 39% who do. In addition, there is huge variation in customer lifetime value, underlining the need to identify, nurture and reward your most valuable and loyal customers.”
“Critical to this is a robust customer engagement strategy; whilst traditional ‘stamp cards’ can support repeat custom by providing incentives to return, they lack the insight needed for brands to forge meaningful – and profitable – relationships with customers that will keep them coming back and incentivise them to spend more. F&B brands need the capability to leverage data to create moments that win engagement and in turn create brand advocacy – this is where technology truly adds value,” he concluded.
Coniq will be showcasing the latest ways F&B and hospitality brands can boost their customer engagement capabilities with the latest loyalty and CRM innovations at Restaurant & Bar Tech Live, 25 and 26 September at the Excel Centre, on stand 2870.
For further information contact Rhena Bunwaree: ConiqPR@fieldworksmarketing.co.uk
Coniq is Europe’s leading CRM and loyalty provider for restaurants and retail destinations.
Coniq operates in 16 countries providing mobile-enabled programs for 750+ restaurant and retail brands in 3,000 locations; its programs are used by over 15 million loyalty shoppers, driving additional consumer spend of €1 billion per annum.
Coniq provides loyalty and CRM services to many of UK’s leading restaurant chains.
Coniq’s loyalty and data platform allows restaurants, shopping centres, business districts and retailers to launch loyalty programs that identify who is spending, where, when and why.
Coniq is proud to be working with some of the most respected F&B chains; our clients include Starbucks, MEATliquor and Cabana as well as large shopping destination groups such as Value Retail, Unibail Rodamco and VIA Outlets.