Mo’ Bettahs created a new loyalty program with data collection in mind.
With customer data becoming paramount to a restaurant’s success, several brands are updating their loyalty programs to capture critical information.
It’s been a main focus for Zach Goldstein, founder and CEO of Thanx, which specializes in building such programs. Most recently, Thanx helped fast casual Hawaiian brand Mo’ Bettahs launch its new loyalty program, with the data goal in mind.
“The general problem we see is that most brands are lacking in customer data and therefore, it’s difficult for them to deliver personalized marketing,” Goldstein said. “We have seen massive growth in launching and upgrading loyalty programs because of that.”
The process to do so, Goldstein said, includes fixing problems with loyalty programs from the past, one of them being the level of user participation.
“There are a lot of programs that have people scanning codes, checking in with their number or any number of things,” Goldstein said. “Some customers are willing, but most are not, and you end up capturing only a small portion of your customers.”
Kelsey Vincelette, Salata’s senior director of marketing, says incentives are helping grow the brand’s loyalty user base.
Other issues, according to Goldstein, include the focus on discount rewards and the lack of cohesion between loyalty programs and online ordering.
“Many restaurants run a loyalty program, but the digital ordering experience is not well integrated,” Goldstein said. “Brands that have embraced digital ordering are able to massively grow their loyalty program, but those have to be interwoven.”
Thanx did just that at Mo’ Bettahs, making loyalty participation easier with rewards awarded automatically when customers used digital ordering. The program also offers non-discount rewards such as passes to skip lines and access hidden menus.
Rob Ertmann, CEO of Mo’ Bettahs, said the timing for a new program was right, as the 40-unit brand is also in a period of growth.
“We’re trying to get into new markets and we were really looking at the loyalty program,” Ertmann said. “We said, we need to have a way to better connect and engage with our customers.”
The new program, Ertmann said, has created a seamless experience, with customers able to receive offers with efficiency. As time goes on, Ertmann said the program will continue to evolve.
“We’ve just kicked it off, so we’re looking at how we can find creative ways to add new loyalty tiers potentially,” Ertmann said. “At the end of the day, the beauty is the data, and utilizing that data to find creative ways to engage with the customers and get them to come back. The measure of success is going to be how big our database gets.”
Ever-evolving systems
Another restaurant brand working with a partner for its loyalty program is Goodcents. The Kansas-based sub sandwich concept worked with Punchh to launch its new program in February. It’s the latest in a line of upgrades Goodcents has implemented since it first launched loyalty seven years ago.
Like Mo’ Bettahs, Goodcents’ new program is centered on data, and how it can be applied to repeat customers.
“It’s a more effective way to communicate with customers,” said Jami Bond, vice president of franchise development. “For example, when we wanted to tell people that we were having kids meals, a message would go out to everyone. Now it just goes out to the people who have kids.”
As for rewards, Bond said Goodcents is utilizing discounts while also pushing for more online ordering.
“Guest checks are higher online, and we know that’s because pictures sell, and the computer doesn’t forget to upsell,” Bond said. “We don’t want to have the most generous program out there, but we also don’t want the least generous. We’re right in that sweet spot, getting a return for our franchisees, but also doing the right thing by our guests.”
For some brands, getting rewards to the customer quickly has been the most effective strategy. Ninety-unit salad concept Salata, for example, has had success with its loyalty program, launched in 2019, by offering rewards from the start.
“I think the biggest thing is providing an incentivizing offer where they get rewarded right away,” said Kelsey Vincelette, Salata senior director of marketing. “The guest earns 85 points right away when they sign up and get points after their first order, so they automatically get a reward. I think when they see that, it encourages them to come back and get another salad sale.”
According to Vincelette, in 2022 the incentive helped grow loyalty program membership by 26 percent.
