Leaders from IHOP, Potbelly, The European Pizza Company, and vPromos shared insights on the success factors of their loyalty programs at the Restaurant Franchising and Innovation Summit.
In today’s market, loyalty programs are abundant, as restaurants vie to attract and retain customers through reward offerings. While brands like Starbucks have mastered loyalty programs, many others struggle to engage their customers effectively.
During a panel at the Restaurant Franchising and Innovation Summit in Kansas City last March, experts in the restaurant industry delved into the strategies for creating compelling loyalty programs and avoiding common pitfalls. The event, organized by Networld Media Group, brought together leaders to share best practices in restaurant management. Networld Media Group oversees Fastcasual, Pizza Marketplace, and QSRweb. Their upcoming event is the Fast Casual Executive Summit scheduled for October 13-15 in Denver, Colorado.
During a breakout session titled “Why Your Loyalty Program Isn’t Working,” Stacey Kane, a fractional chief marketing officer, led a discussion with speakers Nathan Casey, VP of digital marketing at IHOP; David Daniels, SVP and CMO at Potbelly; Tommi Tervanen, CEO of The European Pizza Company; and Peter Vogel, CRO at vPromos.
Successful Loyalty Programs
Reflecting on IHOP’s loyalty program, Casey noted its significant success since launch, with positive guest feedback and increased transactions and spending as direct outcomes of the program.
Discussing the industry shift towards loyalty programs, Casey highlighted how restaurants, inspired by the likes of Starbucks and Domino’s, began embracing loyalty initiatives, especially with the changing marketing landscape and the importance of data-driven strategies.
Tervanen emphasized that understanding consumer perspectives on loyalty programs is crucial before implementation. The European Pizza Company’s program in Finland witnessed remarkable results, with a significant portion of households joining and driving online orders and revenue.
Personalization
Daniels stressed the importance of personalization in Potbelly’s loyalty program, tailoring offers to match customer preferences and behaviors to drive engagement and repeat visits.
Vogel highlighted the automation aspect of vLoyalty, simplifying the process for both merchants and customers by seamlessly integrating loyalty rewards at payment terminals.
Enrollment Strategies
Addressing the challenge of encouraging app downloads for loyalty programs, Daniels discussed Potbelly’s approach of promoting exclusive perks for loyalty members to incentivize sign-ups, including a free sandwich offer and unique app-only menu items.
Casey emphasized the critical role of employee enthusiasm in promoting loyalty programs and enhancing the overall guest experience. IHOP’s app features, such as mobile bill payments, further incentivize enrollments with sign-up bonuses.
