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Loyalogy
Consumer Study Finds That
Restaurant
Rewards Programs May Increase Guest Visits By 35%
|
Asheville,
NC – March 2014 / Newsmaker Alert / Loyalogy,
leading provider of loyalty program analysis, data mining, reporting and
consulting services to the restaurant industry, announced the results of
its second annual U.S. study tracking consumer attitudes and behavior regarding
restaurant rewards programs.
“Our
latest study provides consistently clear evidence directly from consumers
regarding the effectiveness of restaurant rewards programs and the importance
of such programs to restaurant guests,” said Dennis Duffy, President of
Loyalogy.
The
study, based on detailed survey responses to 55 questions among 1,100 consumers
from across the U.S., found that:
-
Consumers
estimate an appealing restaurant rewards programs would increase their
visit rate to a particular restaurant by an average of 35%. This figure
is consistent with the 2013 study.
-
Nearly
three-fourths of consumers (73%) report they would recommend a restaurant
more to others if that restaurant offered an appealing rewards program.
This figure is up from 65% in the 2013 study.
-
86% of
consumers prefer a rewards program with a clearly-defined proposition in
which they earn rewards based on spending or visits rather than a program
built solely on periodic, surprise free items.
-
43% prefer
a program that offers points which convert to rewards which may be spent
like cash at the restaurant.
-
43% prefer
a program that is based upon visits, such as 8 visits spending a minimum
amount each visit would generate a free meal.
-
14% prefer
a program that offers surprise free menu items that may be used for a certain
period of time with no pre-defined criteria for receiving that free item.
-
Consumers
desire a simple reward program enrollment process in the restaurant and
would prefer to supply additional information online after they have left
the restaurant.
-
Although
consumer wallets are bulging with plastic cards, 60% of respondents stated
that they don’t mind carrying a membership card for a rewards program if
it’s necessary.
-
A single
rewards program membership covering multiple restaurant brands has significant
appeal to consumers. 75% of respondents agreed they would like to have
one rewards program membership that was honored at multiple restaurant
chains. This figure is up from 73% in the 2013 study.
-
Consumers
participate in an average of 3 restaurant rewards programs, up 15% from
the 2013 study which found participation at an average of 2.6 restaurant
rewards programs.
-
Consumers
are visiting restaurants more frequently with an average of 13 times per
month, up 26% from the 2013 study which found an average of 10.3 visits
per month.
-
The 25
to 34 year-old age segment, which includes the oldest members of the Millennial
Generation, demonstrates a more intense use of restaurants and rewards
programs. In our study we refer to this group as Millennials with Means
because they fall into the Millennial age range and have a household income
of $75,000 or more.
-
Millennials
with Means visit restaurants 40% more (18.5 visits per month versus 13
visits per month for the overall population).
-
Millennials
with Means participate in more than twice as many restaurant rewards programs
(6.5 restaurant rewards programs versus 3 restaurant rewards programs for
the overall population).
-
Millennials
with Means are more responsive to rewards programs. They estimate that
an appealing restaurant rewards program will yield a visit increase of
43% versus 35% for the overall population.
-
Millennials
with Means are much more interested in managing all aspects of their rewards
program participation with a smart phone app. A total of 57% of this group
expressed a desire to do everything using a smart phone app versus 35%
for the overall population.
About
the Loyalogy Consumer Research Study
The
Loyalogy consumer research study was conducted through an online survey
of U.S. consumers between the ages of 25 and 65 with household incomes
of $75,000 or more. The respondents were selected from an online research
panel provided by The Sample Network. The survey consisted of 55 questions
in categories that include:
-
Restaurant
visit rate and spending, including breakdown of those who visit restaurants
just for pleasure or both pleasure and business.
-
QSR.
-
Fast Casual.
-
Full-Service
Casual.
-
Full-Service
Fine Dining.
-
Visit
rates in certain categories such as:
-
Coffee
shops.
-
Traditional
delivery/carry out pizza restaurants.
-
Gourmet
pizza restaurants.
-
Take and
bake pizza usage from specialty brands and gourmet grocers.
-
Gourmet
burgers - also referred to as ‘better burgers.’
-
Bar and
grill.
-
Participation
rate in restaurant rewards programs.
-
Usage
of online services (website or mobile app) such as Open Table, Yelp, Urban
Spoon and Trip Advisor.
-
Usage
of online ordering (website or mobile app).
-
Relative
appeal of 14 different reward program benefits.
-
Attitudes
about 9 different statements regarding carrying membership cards, using
a phone number as identifier and receiving promotional e-mail messages
from rewards programs.
-
Attitudinal
statements regarding the impact of rewards programs on behavior.
-
Demographic
characteristics.
Results
of the study and detailed datasets for additional analysis are available
at no cost. Download the results of the study and detailed data at www.Loyalogy.com.
About
Loyalogy
Loyalogy
was founded by Dennis Duffy who has more than twenty years of experience
developing, managing and analyzing customer loyalty programs. Loyalogy
provides loyalty program data analysis and data mining services, online
dashboard and reporting tools, loyalty program development and consulting
services and workshops for companies contemplating a customer loyalty program.
For more information, visit www.Loyalogy.com.
Contact:
Dennis
Duffy
President,
Loyalogy, Inc.
828-333-5860 |