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The Real Value of Online Customer Loyalty

Value of Online Customer Loyalty

The High Business Value of Online Customer Loyalty

A recent study by Harvard Business Review revealed that on average, businesses lose nearly 50 percent of their customers every five years. Metrics from the same study showed that new customer acquisition can be up to five times higher than retaining current customers. A five percent customer defection rate can have a financial impact equivalent to increasing business costs by 25 percent. Breaking down these figures by their impact in areas related to improving online customer loyalty demonstrates the high value created by customer loyalty.

Loyalty Customers are More Willing to Purchase Other Product Lines

A characteristic of loyal customers is their willingness to purchase product lines which cross product category boundaries. For instance, a loyal customer of a clothing product outlet is more than 70% likely to be willing to purchase a product as different as furniture from that same outlet. Online stores that carry many different product lines are best situated to take advantage of this benefit of loyal online customers.

Loyalty Customers Spend More and Generate Larger Transactions

It should come as no surprise that loyal online customers are also more willing to spend more during their purchases and increase the size of their transactions. Studies have revealed that customers who have been retained for between two and half to 3 years are spending between 23 percent and 67 percent higher than they had during their purchases in their first 6 months. Breaking it down further, analyzing their purchase by purchase numbers revealed that customers had increased their online purchases transaction levels by 40 percent over their initial purchase size, doubling to nearly 80 percent by the 10th purchase. Customer loyalty demonstrates increased value in purchase transaction amounts dynamically over time.

Loyalty Customers Generate Higher Referrals From New Customers With Higher Spending Habits

With today’s online consumer highly dependent upon word of mouth recommendations in the form of online reviews, social media network posts, texts, emails, etc., it would seem critical to the expansion of your business sales, in terms of customer number volume alone, that a loyal customer base synergistically enhances internal marketing efforts.

In fact, online purchase figures reveal that on average a satisfied customer referred 3 to 4 customers following their initial purchase, and that increasing to between 7 and 13 referrals (on average) by their 10th purchase. Not only that, but further study of the spending habits of these referrals revealed that this customer base spent between 50 and 75 percent more than the original customer from whom they were referred. Loyal customers can be worth several times their initial purchase in terms of referrals alone.

Customer Loyalty Strategy for Sustainable Results

Given the high importance of online customer loyalty as demonstrated by these three categories alone, it becomes critical that businesses implement proven practices that improve customer loyalty, thereby deriving the above-mentioned value benefits. Some of these practices include:

Recognizing customers as assets versus as transactions. Prior understandings of online customer activity focused on aggregate customer data. Your customer is a valuable asset as a loyal individual, with high upside return exponentially correlated with their level of satisfaction with their purchase experience(s) from your business. There’s no better way to determine what will drive customer behavior then to go directly to the source. Ask your customers what they want, what they like and dislike via online surveys. In addition, conduct focus groups with your best customers and potential high value customers to generate ideas that will enhance the customer experience.

Look at the customer from a holistic perspective then segment customers that are similar. Segment your customers by their value to your company, and then differentiate them by their customer lifecycle and needs. The segments should include a 360 degree view, combining customer relationship elements of purchase behavior, customer attitudes, satisfaction, demographics and lifestyles. Once you’ve created the loyalty segments, prioritize them to focus on their potential economic impact.  Next, develop a communication plan that delivers the right message to the right customer at the right time.

Measuring customer retention and satisfaction along key retention drivers. Programs and sales efforts designed to demonstrate your business’ loyalty to your customers including: satisfaction surveys, strong customer service and other areas which demonstrate to your customers that they are valuable and unique individuals will further this objective. While some customers are moved by price, service, convenience and personal recognition are important factors in customer loyalty for many others. By understanding your customer’s attitudes, behavioral drivers and needs, you can develop marketing strategies that pushes the most appropriate levers to help you build profitable, long-term customer relationships.

Keeping tabs on competitors and other industry leaders, especially in terms of their customer loyalty programs. It’s important to understand how your competitors’ customer loyalty strategies differ from yours. An exercise as simple as visiting your competitors’ websites can provide valuable information for winning new business in areas in which their processes are weak.

Investing in areas that strengthen opportunities for making the customer’s life easier. Simplifying the purchasing process, improving order processing, shipping and customer service, as well as clarifying product descriptions so they create realistic customer expectations and creating loyalty programs can return heftily in terms of customer satisfaction and loyalty.

Why Restaurant Loyalty Programs Work

Repeat Customers

Menu for Success

“Where do you want to eat tonight?” may be a popular question asked among couples and families, but it may be one that is already answered before being asked. How can this be? Simply because so many customers are already loyal to particular restaurants that they enjoy eating at. In fact, a staggering fifty-four percent of restaurant customers say that they are loyal to a particular restaurant. If you are in the business, you certainly want to have a strategy to engage new diners and to foster their customer loyalty.

Loyal customers are not only great for the revenue that they produce themselves, but also as unpaid marketers for their favorite restaurants. The vast majority of loyal customers say that they would recommend a restaurant to their friends or family. They do this because they like the service and the food that they receive while they are there.

State of Customer Loyalty — Restaurants

Infographic: The value of loyal customers

The Power of Repeat Customers

On occasion restaurants may lose customers due to a variety of factors. When asked, customers most often said that the expense of the food was their reason for leaving. However, becoming bored of eating at the same place all the time also became a factor. Fortunately, there are ways in which a restaurant can win back those wayward customers. This usually starts with a customer win-back strategy that is integrated into the restaurants overall customer loyalty program. Afterall, it is a lot easier and cheaper to win-back a lapsed customer than it is to acquire a new customer.

Restaurant Customer Loyalty

A small business in particular relies heavily on customer loyalty as they attempt to compete with the big boys and stay afloat. It is not easy to be in the business environment when you are just starting out, so try to do as much as possible to encourage customers to return frequently to your establishment. In the Deloitte study, Second helpings: Building consumer loyalty in the fast service and casual dining restaurant sector, reported:

“We found that the overwhelming majority (71 percent) of the 26 percent who said that their most-visited restaurant offered a loyalty program both joined that loyalty program and used it more than any other loyalty program. What such a high conversion rate means is if you will build it, they will come. Even more promisingly, our survey results suggest that a restaurant’s best customers who belong to and actively use its program are more satisfied with the restaurant than those who do not. We also found that they are more apt to evangelize the brand to their friends and family. And membership in and usage of a loyalty program offers an additional benefit that is as important as any other—a way to track the behaviors of all of the customers who use it, whether or not they are a restaurant’s best customers. Loyalty membership databases are overflowing with information about customer demographics, purchase behaviors, and profitability, and such information can help restaurants shape individualized product offerings and heighten customer engagement.”

Keep Them Coming Back

Your loyalty program does not have to be complex to be effective. Here are a few tips:
  • Create a loyalty program that’s unique to your brand, one that your competitors can’t copy.
  • Focus strategically to generate incremental visits, and build profitable customer loyalty.
  • Use social media to advance your restaurant’s value proposition and to drive foot traffic.
  • Use personal recognition and rewards to create aspirational spending and passionate brand loyalists. Even a small gesture—such as a free beverage or dessert can help garner goodwill and drive brand affinity.
  • People can’t join a your loyalty program or you it if they don’t know about it or the value to them personally. Create an integrated communications plan across all touch points to ensure that customer’s know about the program and understand the value in participating.

Building Customer Loyalty in Your Restaurant

Why wait? Call today and learn how Customer Insight Group can help you turn your customers into your biggest advocates and most loyal fans.  There is no obligation.  303-422-9758. 

The Future of Mobile Wallets



The ability to pay for store purchases using your cell phone is quickly becoming a widely accepted practice. The new medium, which is called a mobile wallet, is quickly becoming a strong preference for many individuals over digging through a traditional leather wallet to find a credit card or debit card to pay for their store purchases. Imagine the convenience of being able to pay for your coffee at McDonald’s with just simply a few taps on your smart phone? The technology is still in its infancy, but it’s already a $200 plus billion industry that is expected to grow to $700 Billion by 2017. A recent study noted three different takeaways from experts about the future of this nifty new technology. These would include the following:

Mobile Wallets Delivers Value to Marketers Even Today

Marketers are always looking for the next big thing in order to help them increase their bottom line. Even today, mobile wallet technology can offer some value to them because it can enable marketers to aggregate offerings and entice new customers by offering loyalty points and coupons. Marketing professionals will find that their customers can get a more streamlined process where they can easily access information about their favorite products. Moreover, the convenient payment function of mobile wallets will enable marketers to offer extended brand promise functions, strong conversion rates and the ability to drive an exponential amount of traffic and sales conversions. Consumers want an expect their mobile wallet to deliver a better shopping experience. In particular, the top five things US consumers smartphone users are interested in accessing on their phone:

  • 57% Loyalty programs points and rewards
  • 56% Coupons, discounts and special offers
  • 52% Price comparisons for items I want to by
  • 50% Product information for items I want to buy
  • 50% Make a reservation at a restaurant

Mobile Wallets Will Become Powerful Marketing Platforms Within the Next Five Years

Mobile Wallets are primed to become much more than just a payment program. Platforms such as PayPal and Apple will offer their buyers a contextualized customer loyalty program, so it is up to entrepreneurs and marketers today to test the mobile wallets now. In September 2014 during the launch of the new iPhone 6 devices, the Apple Watch, and Apple Pay services, Tim Cook, CEO of Apple, summarized the potential opportunity by saying, “The vision is to replace the wallet. And the starting point is payments.”

Leaders Should Look at Mobile Wallets’ Potential Beyond Payments and Offer Contextual Programs

Mobile wallets expand far beyond just payment programs, marketers should look at new strategies to use those mobile payment processors. Experts in this field highly recommend that marketers mobilize their loyalty programs and update content on a regular basis. As pointed out in the Forrester report, The Future Of Mobile Wallets Lies Beyond Payments, “Apple’s Passbook can be integrated with existing marketing campaigns leveraging current mobile email or SMS campaigns without necessarily having to develop a specific program test. Such campaigns will let marketers know the most efficient distribution channels (e.g., SMS, email, direct mail, or mobile ads) to engage customers within mobile wallets.”

Sears Canada Announces Updates to Loyalty Program

Sears Canada New Loyalty Program

Sears Canada Inc. announced it is updating and modernizing its customer loyalty program, Sears Club, which will bring it more firmly into the digital age.  The enhanced Sears Club loyalty program, set to launch before the Holiday shopping season, will offer improvements to the customer experience.  Members will now earn valuable Sears Club points on purchases made in cash as well as with any debit or credit card accepted by Sears Canada.  Customers can earn points on purchases made in store, through the Catalogue, online at www.sears.ca, or on mobile devices.

New Loyalty Program is Payment Agnostic

Under the new multi-tender loyalty program, Sears Canada will:

  • Provide existing Sears Club customers with a new Sears Club membership card, independent of any credit card
  • Deliver to customers the new Sears Club membership card and program kit in time for the Holiday shopping season
  • Transfer all existing Sears Club points to a new Sears Club membership card in the customer’s name
  • Maintain the value of all existing points
  • Feature enhanced bonus points programs, and even more brands for which to redeem points
  • Offer customers the option of redeeming any Sears Club points earned, including those transferred from the previous Sears Club loyalty program card, towards any purchases made at Sears Canada, whether in cash, or with any debit or credit card accepted by Sears Canada.

All of this will happen without the Sears Canada customer having to do anything at all other than continuing to shop at Sears Canada using their new Sears Club membership card.

As part of the modernization and ongoing improvement to Sears Canada products and services, the company is also in the process of updating the look and feel of its Sears Club brand identity elements.  Sears Canada is excited to share more information on these initiatives in the near future.

For Sears Canada’s retail business, the enhanced Sears Club loyalty program allows the Company to better control its own promotional strategies, and provides more flexibility for future program innovations.  The conclusion of the existing relationship between Sears Canada and JPMorgan Chase will also result in Sears Canada receiving up to CAD $174 million if a sale of the Sears Card and Sears MasterCard credit card portfolio occurs.  Such payment would further strengthen our balance sheet, thereby enhancing our ability to compete and win the business of Canadian shoppers.  There is no assurance that such a transaction will be achieved or that the necessary conditions for the payment will occur.

More Customer Data and Greater Understanding

Credit loyalty programs only reward a subset of customers that are willing to apply for a credit card. As a result, they don’t recognize and reward the other 60% to 70% of customers that are buying with cash, check or third party credit cards. This new program enables Sears Canada to collect information on the customer’s purchase behavior regardless of channel and method of payment. With a holistic view of the customer relationship, Sears Canada can identify their “best” customers and reward them for their loyalty. Plus they are able to understand a great deal more about what their customers are purchasing, how often they buy and their total purchases, which enables them to make their marketing efforts much more relevant.

Customers Earn Rewards For Any Method of Payment

“We are excited to launch the enhanced Sears Club loyalty program which allows customers to earn and redeem points on purchases using their preferred method of payment,” said Brandon G. Stranzl , Executive Chairman, Sears Canada Inc.  “Existing Sears Club members can be assured their points will be transferred to the enhanced program at the conclusion of the agreement between Sears Canada and JPMorgan Chase.  Our customers already have a meaningful direct one-on-one relationship with us, and this relationship will be further enriched through the launch of the improved Sears Club loyalty program, in combination with future credit card or similar financial products.  These program enhancements provide us an opportunity to reach out and speak directly with millions of our customers, and to increase the number of recurring touchpoints between us and our customers so we can provide them with an outstanding retail experience that helps them outfit their lives with brands they love.”


Need help getting your loyalty program to reach it’s potential?

Customer Insight Group is a industry leader in customer reward programs and loyalty marketing. Call 303.422.9758 to learn how we can help enhance your loyalty program so it is driving your key business metrics successfully.


CiCi’s Pizza Engages Customers with Mobile Customer Loyalty App

CiCis-Pizza Customer Loyalty

CiCi’s Customer Loyalty App

CiCi’s, a Coppell, Texas-based buffet-style restaurant famous for its unlimited pizza, pasta, salad, soup and dessert, has announced a partnership with Punchh. Punchh will develop a loyalty app that will allow CiCi’s fans to collect punches each time they visit and earn a free buffet at any of the restaurant’s nearly 450 locations.

“CiCi’s is moving into the digital space as part of our new feeding individuality positioning. We are working to connect with our guests in ways that makes it more convenient to them,” says Sarah McAloon, CMO of CiCi’s. “The mobile app is one of our first launches along with a new website and our first year of digital media.”

Paper Punch Cards to Digital Punchh Cards

With its cloud-based, POS-integrated mobile CRM platform, Punchh will help CiCi’s to better engage guests more frequently. The Punchh platform paints a detailed picture of clientele including who they are, what orders they are placing, which friends they are referring, and offers they are redeeming. By providing CiCi’s with segmentation capabilities, this partnership hopes to achieve an incremental boost in sales, increased engagement on social media, word of mouth referrals, and return traffic.

Consumers and Retail Brands Love Shopkick App

Shopkick App

Shopkick, the shopping companion app that makes in-store shopping more rewarding, personal and enjoyable, has blown past 15 million users worldwide, doubling its user base in one year. Shopkick’s passionate users also spent almost two hours per month in the shopkick app during July 2015, according to data from Nielsen’s Electronic Mobile Measurement Panel. This made shopkick the top app in the Commerce & Shopping category in terms of time spent per person*, far exceeding time spent on other similar apps, which together averaged 36 minutes of engagement per user that month.

Shopkick App

If you stacked all of the gift cards that users have received from shopkick, the pile would be 18 Empire State Buildings, or over four miles, high. That’s 15 billion Kicks, or $60 million, that we’ve rewarded to shopkick users just for shopping how they want to shop,” said Cyriac Roeding, co-founder and CEO of shopkick. “From saving time, money and earning rewards, to discovering the things you are looking for or otherwise would have missed without shopkick, we are reinventing the shopping experience by transforming a store, into your personalized store.”

Along with overwhelming consumer satisfaction and retention, shopkick now has more than 300 large brand partners including Procter & Gamble, Unilever, Kraft and Pepsi, as well as 25 retail partners, including Macy’s, Best Buy, American Eagle, Sports Authority and JCPenney.

How Shopkick Works

Not familiar with shopkick? Here’s an article that explains how shopkick works.

By dramatically improving the shopping experience for consumers, shopkick’s retail and brand partners have seen directly measurable increases in engagement and sales. Independent third party studies proved that 52% of all sales driven by shopkick have been purely incremental, i.e. would not have occurred without shopkick. Said another way, shopkick doubled the sales from its user groups for the participating retailers. Of this impressive incremental spend, 74% came from new customers that shopkick introduced to its partners, who had not made purchases there for at least one year. The remaining 26% come from increased loyalty of stores’ existing customers, who spent 26% more per person and more often at shopkick partner stores, compared to exactly matched customer control groups that did not use shopkick.

In total, shopkick generated a cumulative $1 billion in assisted revenue for its retail and brand partners from 2010 to 2014. In 2015 alone, shopkick expects to drive an additional $800 million to $1 billion in sales.

Beacon Technology

As a pioneer of beacon technology, shopkick has more than 20,000 shopBeacons® installed at more than 14,000 large stores, allowing users to be rewarded for the simple act of visiting a store. These Apple iBeaconTM-compatible devices emit a patented, encrypted signal, using a combination of Bluetooth Low Energy (BLE) and ultrasound technology, which shopkick users and retailers’ own apps can pick up. Shopkick has driven over 90 million store visits and 140 million direct product engagements from users scanning its products from among the aisles at stores.


Fee Based Rewards Programs Deliver Value to Millennials

Consumers Embrace Fee Based Rewards Programs

This may come as a surprise to some marketers who tout the appeal of “free,” but not all successful loyalty programs are fee-free! In fact, two of the most all-time successful such programs are fee-based….and the fees aren’t cheap.Creating a loyalty program – fee-based or free of charge – is all about adding value. You are asking for a customer’s time and attention, and in return you had better be offering something worth the same. In fact, according to a recent article in Direct Marketing News, busy 20- and 30-somethings are happy to part with some cash if the program delivers what they want and need.For most “millennials,” (those in the 18-35 age group), what they want and need most is more time. Fee-based rewards programs can deliver extra time by offering convenience, curated shopping lists, relevance and – most importantly – more time freed up for other things. Here are examples of two wildly successful fee-based loyalty programs.

Amazon PrimeAmazon Prime

Amazon Prime charges its members $99 per year in one lump sum. This works out to $8.25 per month for members who count their pennies.

What do Prime Members Receive?
The biggest perk is Prime’s famous two-day free shipping service which applies to most products. But Prime members also receive access to hundreds of thousands of free movies, television programs, books, deals and curated sales. There are also bundled extra programs for moms and college students that wrap in with a Prime membership.

Why is Prime So Popular?
Prime delivers on all the perks shoppers today want most – free shipping, fast delivery, discounted products and more free time to do other things. And Amazon also gets what it wants – the average Prime shopper spends more than twice what the non-Prime Amazon shopper spends per year ($1,500 versus $625, to be exact). [Consumer Intelligence Research Partners, 2015]

IRewardsIndigo iRewards

Indigo makes up half of Chapters, the most successful and profitable bookstore chain in Canada. Chapters and Indigo merged in 2001 and the chain has just kept gathering strength since then. Indigo/Chapters actually has two rewards programs: iRewards and Plum Rewards.

Plum Rewards Versus iRewards
Plum Rewards is free and points-based – a more traditional rewards program complete with special birthday rewards. iRewards carries an annual fee of just $35 per year ($2.92 per month) and includes discounts on books and everything else the chain carries both in-store and online.

Why Does This Two-Tiered Program Work?
By giving customers the option of two different rewards programs with two different sets of benefits, Indigo leaves the final choice in its customers’ own hand – a perk in its own right and one today’s customers want and expect. iRewards also includes curated shopping lists, another expected perk for today’s online customers in particular. Ultimately, this system works because Plum attracts shoppers who spend less than $750 per year and iRewards attracts shoppers who spend $750+.

Fee Based Loyalty Program Infograph

Fee Based Loyalty Programs Infograph

Chico’s is Profiting from Customer Loyalty

Why is the Passport Loyalty Program Working?

The psychological concept known as “Endowed Progress Effect” is so deeply ingrained in the mind of consumers that loyalty programs are essentially hardwired for success. This principle simply means that people love seeing they’re making progress towards a goal. When they do, their commitment increases and they continue on with their behavior.

Chico’s tiered program structure, for example, shows consumers tangible proof that they are getting somewhere. Everyone can participate in the Passport program, but only those customers spending $500 or more earn the 5% reward. This strategy enables Chico’s to allocate its marketing dollars to only those customers that are loyal and growable. This strategy can be very successful. In a recent loyalty study, 50% of respondents said they increased their spending or changed other purchasing behavior in order to achieve a higher tier status in a rewards program. At Chico’s, 90% of sales come from customers in the loyalty program though Robert Atkinson, vice president of investor relations says its objective isn’t to make them spend more than they intend. [MarketWatch]

Chicos Passport Loyalty Program Benefits

Customer engagement and brand loyalty are the cornerstones of Chico’s strategic goals. During the company’s November 25, 2014  third-quarter financial results conference call, CEO Dave Dyer discussed Chico’s strategic initiatives. “On omni-channel, we remain focused on creating a truly customer-centric experience,” Dyer said, according to a Seeking Alpha transcript.

Need help developing your loyalty program? 

You need look no further than Customer Insight Group’s proven proprietary systematic new loyalty program development process to help you build an optimal program that is financially viable, sustainable and achieves your business objectives.

Understanding The Brand and Customer Data Exchange

 56% – believe that brands collect personal information from them without their explicit consent.New global research from Microsoft uncovered fresh insights into consumers’ attitudes towards the exchange of personal data with brands. The Consumer Data Value Exchange Study, which is part of Microsoft’s bi-annual Digital Trends report, found that while 41% of global consumers consciously share personal information with brands, a larger percentage – 56% – believe that brands collect personal information from them without their explicit consent. This 15% gap in understanding of the brand-consumer data exchange can potentially put brands at risk of losing the trust of consumers over the use of their personal data.

The Consumer Data Value Exchange Study, which covered 16,500 respondents across 13 global markets including Australia, Brazil, Canada, Colombia, Egypt, Germany, Kenya, Mexico, Nigeria, Spain, South Africa, United Kingdom and the United States, also revealed the following findings:

  • Consumers are more willing to share personal information such as their date of birth and address (56%) as well as basic demographics such as age, gender and marital status (53%) compared to biometrics such as facial recognition and fingerprints (11%).
  • When it comes to the type of rewards consumers expect in exchange for their personal data, cash rewards are top of the list (64%), while ‘significant discounts’ also ranked as highly desirable (49%). In addition, more than one quarter (26%) of consumers are willing to exchange their data for services that help them discover new ideas, content and products, or for more streamlined processes (29%).
  • On the cost that consumers are prepared to incur to get added value from brands, a third (34%) of consumers prefer to see more ads in return, while around the same amount (30%) say companies should offer services for free when personal data is being collected. In addition, a quarter (27%) would opt to share more information rather than pay for services.

“There is certainly a shift in consumer perception and attitudes. Our intuitive and emotive relationships with technology have created a world where sharing data leads to benefits for the user. Privacy is now less of a focus, instead, consumers are aware of the value of their data and are open to sharing this data with brands provided that there is a fair exchange of rewards in return,” said Natasha Hritzuk, Senior Director of Global Consumer Insights, Microsoft.

“Brands need to open about what information is being collected and how it is being used. This transparency, when combined with clear benefits, will help to alleviate consumer anxiety about the sharing of personal data. Though consumers today are much more demanding when it comes to the benefits they derive from brands in exchange for the use of their personal data, there are also huge opportunities for brands to engage with consumers at a deeper level when consumers’ trust in brands is not compromised,” Hritzuk continued.

Here are three key takeaways for brands from the Study:

  • Be transparent. Consumers are more likely to see value in sharing data when there are obvious mutual benefits. Inconsistency in data policies and visibility of data usage can make the exchange seem one-sided. In the absence of transparency of information or clear value, the company appears to receive more benefit from collecting the data than what the consumer receives by sharing it.
  • Respect boundaries. Brands must respect the nuances between different consumer groups. Different types of consumers will have different levels of comfort with the type of data they will share, and what they expect for it in return. For example, nervous data sharers tend to be more open to sharing more information if brands remove unnecessary steps and make their online activities simpler. On the other hand, savvy data sharers are much more open to sharing personal information in exchange for a range of rewards.
  • Add value. With behavioral data topping the list of data types that consumers are willing to share in exchange for new services or offerings, brands can prioritize leveraging this data for more effective campaign targeting and engagement. For example, brands can provide content that is based on the target consumers’ interests, or a service that helps to simplify their lives.

Source: Microsoft APAC News Center

Infograph: View and download the Customer Value Exchange Infograph.


HuHot Mongolian Grill Launches HuHot Rewards

HuHot Rewards

HuHot Loyalty Program Executed Across Franchise

HuHot Mongolian Grills, LLC announces a system-wide rollout of its HuHot Rewards loyalty program that leverages Sparkfly’s transaction data capture and promotion tracking capabilities. The new program enables HuHot’s 57 locations to offer customers highly relevant digital promotions that are targeted based on purchase behavior. Franchisees can now replace paper coupons with fraud-proof mobile offers and track their performance at the point of sale (POS).

“The digital promotion capability improves operational efficiency at the restaurant level because guests can easily redeem offers from their mobile phones with single-use codes. Managers no longer need to approve paper coupons,” says Stephanie Krause, HuHot’s vice president of marketing.

Sparkfly’s platform enhances and combines HuHot’s CRM and loyalty capabilities, allowing the marketing team to capture transaction data and segment loyalty users based on purchases. HuHot is then able to extend segment-specific offers to guests via email.

“Thanks to Sparkfly, we now have a single platform for loyalty and CRM data. This opens the door for us to identify ‘surprise and delight’ offers to that are suited to our guests’ interests and purchase habits,” says Stephanie Krause, HuHot’s VP of Marketing. “In addition, the digital promotion capability improves operational efficiency at the restaurant level because guests can easily redeem offers from their mobile phones with single-use codes. Managers no longer need to approve paper coupons.”

With HuHot Rewards, guests provide their loyalty card number or phone number to add and redeem points at checkout. For every 12 adult grill meals purchased, guests enjoy a free grill meal, amongst other rewards and offers via email. Data obtained via Sparkfly offers HuHot a line of sight into how many guests are transitioning from “low frequency” diners to “high frequency” diners. HuHot can use offers to influence these trends.

Need help getting your loyalty program to reach it’s potential?

Customer Insight Group is a industry leader in customer reward programs and loyalty marketing. Call 303.422.9758 to learn how we can help enhance your loyalty program so it is driving your key business metrics successfully.