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Study: Customer Loyalty in the Restaurant Industry

[Source: Deloitte]

A recent Deloitte study,  “Second Helpings: Building Customer Loyalty in the Fast Service and Casual Dining Restaurant Sector,” surveyed more than 4,000 patrons of quick-service restaurants to find out attitudes and behaviors regarding loyalty and rewards programs at these establishments. The study found that the loyalty program adoption rate is lower in the restaurant industry compared with other sectors, with 50% of surveyed respondents belonging to at least on restaurant program, versus airlines (78%) and hotels (70%).

More stats from the study include:

  • 25% of customers consider loyalty programs an important factor when choosing a restaurant
  • 74% of respondents indicate that they do not participate in their favorite restaurant’s loyalty program, citing no program or knowledge of one offered.
  • 33% felt that they had developed a personal relationship with their favorite restaurant’s brand and people.
  • 61% said that they never or rarely wanted restaurants to contact them for personal feedback.

“Although restaurant loyalty program participation is lagging, the study indicates that consumers do not have an inherent aversion to such programs,” Scott Rosenberger, principal at Deloitte Consulting LLP, said in a press release. “These programs can drive value if promoted effectively, as a restaurant’s most frequent patrons are more inclined to join that restaurant’s program and use it more than any others.” Additionally, he said, Deloitte found that those core customers who do belong to their most-visited restaurant’s program are more satisfied stronger brand advocates than those who do not.


The Buzz: Ben & Jerry’s Loyal Customers, Building Loyalty in the Digital Age

Loyalty marketing news, tips, trends and best practices.

Below is our roundup of the latest noteworthy customer relationship marketing news, article, information and trends.

It comes down to its commitment to linked prosperity, writes Brad Edmondson, the author of Ice Cream Social: The Struggle for the Soul of Ben & Jerry’s. Read more

Safeway shoppers will never again be able to use their club card. According to Safeway, the card is being scrapped largely because customers don’t like carrying so many cards in their wallets. The company says those savings will now be passed on without the card. Read more

A growing number of savvy chains are turning to YouTube and posting informational or instructional videos designed to inform and amuse diners — and keep their brand top of mind. From there, if a brand is lucky, social-media sharing spreads their “useful” videos far and wide. Read more

Consumers interact with marketing messages the same way they interact with other people — through emotion. Here’s how to tap into basic human triggers. Read more

Retail brands that have gained the most value are stretching beyond their core businesses, nimbly bridging the divide between brick-and-mortar stores and online/mobile shopping. Read more

To better reach this group ranging in age from 18 to 33, retailers can turn to Pew Research Center’s extensive survey released last month, “Millennials in Adulthood. Read more


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Study: Brand Loyalty of Millennials

[Source: Adroit Digital]

A recent report from Adroit Digital surveyed 2,000 Millennials to gain a better understanding of how they view brands and their general feelings about brand MILLENNIALS THE NEW AGE OF BRAND LOYALTYloyalty. Results indicate that they see themselves as loyalists, but in a different manner than their Gen X siblings or Baby Boomer parents.

A big difference in the way Millennials determine brand loyalty is that they have much higher expectations about how a brand should behave. “They (Gen Y) are really leaning into corporate conscience,” Glenn Humble, director of marketing at Adroit, told Marketing Daily. “They expect brands to be eco-friendly, to care more about the planet. They expect them to be willing to change.”

Part of the survey looked to explore which advertising medium most influences millennials. While TV is still the most influential at 70%, social media is close behind at 60%. Surprisingly, mobile influence is 33%, lower than most marketers might expect.

Some other findings of the report include:

  • 20% use most of the same brands as their parents
  • 24% feel they are even more brand loyal than their parents
  • 56% say they would change brands if they experienced a change in their finances, citing money as the biggest reason for switching loyalty
  • 52% say that for brands to maintain relevance, they have to be willing to change based on consumer preferences
  • 44% expect brands to have open dialogue through social channels



In regards to where Millennials place their loyalty by industry, 59% said they are most loyal to their cell-phone providers, followed by fashion at 56%. Hotels and airlines fared much worse, coming in at 16% and 25% respectively.

How does your company go about gaining the trust and admiration of the next generation of consumers?

Small Business Owners Shift Investment From Customer Acquisition to Customer Engagement

Small businesses are investing more of their time, money and resources in strengthening relationships with existing customers versus acquiring new ones, according to a recent report from research firms Manta and BIA/Kelsey.

The report, titled “Achieving Big Customer Loyalty in a Small Business World,” details findings from approximately 1,000 small business owners who belong to Manta’s online community, surveyed in January 2014. The survey inquired about the business owner’s habits and focus on new and existing customers, as well as their current and future plans for implementing and managing customer loyalty programs. BIA/Kelsey reported in 2012 that small business owners prioritize customer acquisition over retention at a seven-to-one ratio. But business owners have apparently shifted gears, and of those surveyed 61% reported more than half their annual revenue comes from repeat customers rather than new, with repeat customers spending 67% more.

Other findings from the study include:

• 14% of small business owners are earmarking the majority of their annual marketing budget to acquiring new customers, with 20% investing more time and effort to acquire new customers.

• 34% of small business owners operate a loyalty program, but the majority of programs put in place are offline, failing to take advantage of technologies that offer analytics and customer insight.

• 46% of small business customer loyalty programs are digitally run and managed, but 50% of small business owners rely on word-of-mouth or paper-based programs.

Source: Manta and BIA/Kelsey

The Buzz: Nordstrom, Williams-Sonoma and 4 Loyalty Marketing Trends

Loyalty marketing news, tips, trends and best practices.

Below is our roundup of the latest noteworthy customer relationship marketing news, article, information and trends.

Nordstrom is a 123 year young company. Its management is innovative and looking for future growth. While many competitors speak about omnichannel, this company has done it for many years. Read more


“When weather is bad, customers go to the website. They leverage big data more effectively than anyone I’m aware of. Read more


When the brand launched Papa Rewards program, there was a large promotion done on the store level, offering perks like free pizza for sign-ups. Now, the brand is working to leverage all the data it has collected, creating more sophisticated segmentation schemes to deliver more targeted rewards and offers for customers. “We’ve got their loyalty and now we want to evolve,” says Kraut. “The next generation of marketing is leveraging big data.” Read more


From one-to-one to peer-to-peer, the relationship between consumer and brand has been tipping over the past few years, and the consumer is the one gaining scale. Read more


In overall marketing spend by small business owners one of the more interesting numbers was that the average amount spent on Internet or mobile marketing for small businesses is 46 percent of their total budget, and for 20 percent of businesses 81 percent to 100 percent of their budgets are allocated to Internet and mobile marketing. Read more


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The Buzz: Office Depot Puts Customer Experience at the Center of its Marketing

Loyalty marketing news, tips, trends and best practices.

Below is our roundup of the latest noteworthy customer relationship marketing news, article, information and trends.


“We have access to more data than any other retailers who came before us. Then what’s holding us back?” The answer is a lack of customer centricity. Read more


Innovative, incentive-driven points program to reward active users of AARP. org with virtual currency. Read more


Customer intelligence holds tremendous value for retailers, no matter their location or market. Leading retailers know how to manage their customer data, gain insights and personalize the engagement with their customers. Where do you stand? Read more

Companies marketing to millennials have found doing business with this generation is no easy feat.  Read more


Popular mattress and bedding manufacturer Serta is launching a customer loyalty program that will let shoppers save as much as $1,000 toward their next Serta mattress purchase. Read more


It may not seem sexy, but consistency is the secret ingredient to making customers happy. However, it’s difficult to get right and requires top-leadership attention. Read more


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Study: Consumers Want a More Personalized Retail Experiences

Nearly 90% of Americans repeatedly buy products retailers have on promotion, according to a new survey conducted by Synqera. Within the survey, 85% of respondents said they would return to brick and mortar stores when alerted to upcoming sales of previously purchased items.

“We know there’s an appetite for customer engagement and retention through clear communication of promotions and sales both prior to the visit and throughout the in-store experience,” said Filipp Shubin, COO of Synqera. “Consumers are still immersed in the brand experience while at the checkout desk and are ready to receive more information that’s relevant to them.”

Other findings from the survey:

  • 96% of adults like to receive some sort of information from stores they frequent.
  • Over 4 out of 5 Americans are more likely to return to a retailer if they were made aware of upcoming sales on products they previously purchased.
  • Impulsive shoppers are most impacted by discounts when making unplanned purchases; nearly half are influenced by in-store ads.
  • Most shoppers prefer to be made aware of relevant information through email or traditional mail; nearly half like to be made aware at the store entrance.
  • 80% of Americans are interested in seeing/doing something while waiting to pay for their purchases; Most would be interested in seeing coupons/in-store specials; nearly one-third would be interested in relevant partner/retailer promotions.
  • 85% of Americans believe that their grocery shopping experience could be better.
  • Nearly 2 out of 5 believe grocery stores would benefit from new item suggestions that are in their price range.
  • Nearly one-third would enjoy self-help kiosks where loyalty program accounts could be accessed.


Study: Confidence and Trust Are Building Among Bank Customers

EY's 2014 global consumer banking survey.After a number of years of sharp decline, confidence in the banking industry is on the rise, trust in individual banks is high and most customers across the globe are satisfied enough to recommend their main banking provider, finds EY’s 2014 global consumer banking survey. The study, Winning through customer experience, which surveyed over 32,000 banking customers in 43 countries, shows banks are providing traditional banking services well but are viewed as falling short on important aspects of the customer experience, and are also increasingly vulnerable to competition from new providers of banking services.

Heidi Boyle, EY’s Principal of Financial Services Customer Practice, says: “Despite another challenging year in the banking industry, consumer confidence has actually gone up. But banks still have some way to go to improve this – for example, increasing transparency around fees and charges. Additionally, improving how they deal with resolving problems or complaints will be critical if banks are to continue to win confidence and build trust.”

Confidence and trust are building among bank customers. Globally, one-third of customers reported an increase in confidence in the banking industry compared to a year ago. This is a marked increase on the figures from the previous survey in June 2012, when just 22% reported an increase in optimism. The number of customers whose confidence in the industry has declined in the last 12 months is at 19% – down from a high of 40% in 2012. Around the world, confidence is increasing most in India, where 77% of respondents expressed increased confidence, followed by Saudi Arabia (68%). To the contrary, overall confidence fell most markedly in Spain (by 60%) and Ireland (62%). Most customers (93%) said that they trust their primary financial services provider; naming, “the way I am treated” as the most important reason for having complete trust in their bank after “financial stability.” Recent articles or news stories are in fact one of the lowest influences of trust, with just 8% of customers taking them into account as a reason that impacts how much they trust their bank. “The survey finds customer experience to be a main driver of trust, and customer experience is also the single most common reason that customers open and close accounts – it is more important than fees, rates, locations, press coverage or convenience,” says Boyle.

Customers are on the move. Fifty-two percent of customers have opened or closed at least one product in the past year and 40% plan to in the coming year. Of the 60% of respondents not planning to close or move their accounts, it is not necessarily because they are confident that they are with the right provider: Twenty-two percent of those who plan to maintain their current relationships feel all companies are the same and 17% say it is just too difficult or time consuming to change. “Bank customers are not being actively retained; they simply remain with their current provider through inertia and are therefore vulnerable to competitors. Meanwhile, new types of financial services providers with new technologies and customized services are penetrating the global marketplace and cannot be ignored.” adds Boyle. Despite improving confidence, customers feel that banks do not always have significant advantage over newer types of banks and technology companies, even when it comes to providing financial advice. More than 30% of respondents believe alternative banking providers are better able than traditional banks to improve how customers conduct business and reach financial goals. “Traditional banks are performing well on basics like branch access and ATM availability but they are most vulnerable in areas with the highest growth potential. There is real opportunity for alternative providers to dominate the digital offering, personalize the experience and become primary providers,” Boyle says.

Complaint levels are high but handling problems well wins customers.  Approximately one-third of bank customers contacted their bank about a problem in the past 12 months with 25% feeling very satisfied, 42% feeling satisfied and 33% feeling less than satisfied with the outcome of their complaint. Of customers who were very satisfied, 58% gave the bank more business, while 32% of customers very dissatisfied with the problem-resolution experience closed some or all of their accounts. Transparency about fees, charges and guidance on how to avoid them are consistently one of the biggest issues for banks across the globe to tackle. They represent 15% of all problems reported and are second only to denials of credit/loan requests and charges when making a purchase as a source of dissatisfaction. “The high level of customer complaints is a strong signal that banks need to get better at communicating their fees and charges with their customers. The good news is that solving a problem or addressing a complaint creates a critical customer interaction, which, if done well, can actually increase a customer’s business,” says Boyle.

Taking a fresh approach to segmentation. The extensive survey examines 31 core elements of customers’ banking expectations and preferences. In the report, the 35,642 customers were grouped into consumer segments sharing behavioral characteristics, products, channel preference and reasons for trust – rather than only traditional age, geography or income metrics. See the infograph below to learn more about the eight customer segments that were identified.




Study: Consumers Are Now Habitual Deal Seekers

#Infogaph: Let's Make A Deal Study Results
Parago’s second shopper study, “Let’s Make a Deal,” revealed that regardless of income, shoppers now seek out the very best prices and are willing to go out of their way to save even a small amount. Amidst the lagging economy, new deal-seeking activities are becoming the norm among UK consumers, with high-value cashback rebates programs a top attractor.
Parago’s study found that shoppers are using circulars, fliers and the internet to research deals before they shop. Finding the best value is a practice now cemented in consumers’ path to purchase due to several factors: greater price sensitivity, reduced perceived purchasing power and easier access to deals on mobile phones, online and via social networks. The shopper survey was conducted by parago, a global incentives and engagement company.Key findings from the “Let’s Make a Deal” shopper study include:

  • Price sensitivity is up: Nearly 3 out of 4 shoppers are more sensitive to price this year due in part to 44% of those surveyed feeling their purchasing power has decreased.
  • Shoppers will got out of their way for discounts:More than 75% of consumers would drive 5-10 minutes out of their way for a £10 discount on a £50 product. A full 93% of shoppers would drive 5-10 minutes out of their way for a £20 cashback discount.
  • Price is the top purchase influencer: The large majority of shoppers (65%) report that price is the primary influencer on purchase decisions, above store (13%), quality (12%) and other factors.
  • Preference for cashback rebates is growing: When given the option of a lower-value instant discount or a cashback rebate, the majority of consumers prefer the rebate. This is a strong win for marketers, as the instant discount and cashback rebate have the same net promotional cost. Additionally, most shoppers are interested in seeking out rebates (72%) and feel they offer great savings opportunities (79%).
  • Deal-seeking behaviour is booming: Before shopping, 90% of consumers look online for the best deals and 89% look for sales, deals, cashback rebates and best advertised prices.
  • Demand for deals in social networks: 1 out of 3 shoppers would participate in a social media contest to receive an exclusive cashback rebate.

Caribou Coffee Launches Loyalty Program, “Caribou Perks”

[Source: Caribou Coffee]

Caribou Coffee launched its new loyalty program, Caribou Perks, created to enhance the overall guest experience at Caribou coffeehousesCaribou Coffee Loyalty Program nationwide and reward the brand’s passionate fans. Through this program, Caribou guests will be able to enjoy their favorite Caribou menu items and earn perks along the way. Rewards can be everyday items, special treats or great offers from Caribou.

Those who join the program and complete all the optional questions in their online profile will be rewarded with a free medium beverage of their choice, perfect to pair with any of Caribou’s wide array of delicious menu items such as a savory breakfast sandwich or a sweet baked good.

“After a successful pilot for Caribou Perks at select Caribou Coffee locations, we are excited to announce the full rollout of the new loyalty program,” said Mike Tattersfield, president and CEO of Caribou Coffee. “Our guests are extremely loyal and passionate about our product offerings, and so we are thrilled to be able to reward them for simply being our fans. We believe this program will enhance the guest experience and is the perfect complement to our premium menu items and warm coffeehouse environment.”