By: Daniel Rubinstein, Chief Business Development Officer, LoyaltyPlant
The data is in and the proof is clear: mobile apps increase same store revenue through engagement and can help turn a restaurant into a well-oiled profit machine. One of KFC’s most innovative franchisees in Europe recently got several international awards (i.e. International Loyalty360 Platinum International Degree award and the Gold for Return on Customer Experience) for achieving astounding results with its customer loyalty program using mobile technology — double-digit growth of the same store revenue.
While restaurant marketing leaders are trying to launch mobile pilot projects and find the recipe for success, KFC, operated by AmRest in Europe, got the answer. KFC set out to build a new personalized communication channel to drive customer frequency by building true loyalty instead of functional loyalty. Their specific goal was to increase foot traffic and to take advantage of a dynamic CRM system, loyalty program and a leading-edge mobile app.
To achieve this goal, KFC focused on customer experience in their mobile app generating impressive results in just a few months:
- 25 percent of customers used the app during their visit with KFC driving engagement through a combination of personalized communication and proximity-based rewards;
- The customer win back campaign with a giveaway of a free and premium Colonel Sanders sandwich to lost customers had a high open rate of 34%, helped grow revenue with a 14% “win back” conversion rate;
- The restaurant increased visit frequency by performing other simple steps including automated birthday greetings;
- Mobile marketing helped grow same store revenue by 12%.
What KFC proves is that restaurants seeking improved customer loyalty and increased same store revenue should take a closer look at mobile. According to Google Shopper Marketing Agency Council, 90% of smartphone owners use their device for pre-shopping and shopping activities while Customer Insight Group highlights that 73% of customers actually want a loyalty card on their device. This means that mobile is a preferred method of building loyalty and brand engagement when it comes to restaurant customers. It’s also crucial to reach mobile users at key moments when they are deciding on a place to eat. The right mobile app will work to get more foot traffic in specific locations, grow the CRM database, make ordering for customers more efficient, and provide staff quality control.
LoyaltyPlant is a mobile platform that helps restaurant owners and marketers build rewarding customer relationships and harness mobile apps and CRM to elevate customer loyalty and revenues. LoyaltyPlant originally started with a few chains in Europe and now supports 500 clients and 9 million users in 8 countries globally. From the big name fast casual chains like KFC and Pizza Hut to regional chains like Balance Grille in Toledo, OH. For more information visit www.loyaltyplant.com
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