August 28, 2013
Preston Restaurant Lounge a restaurant located in business district of Vancouver targets revenues through adding clientele from both business and leisure activities. The restaurant is mostly popular for driving footfalls during the lunch hours. The management faced problems in retaining customers during post work hours and also on the weekends.
RewardLoop a mobile loyalty startup, approached Prestons to take part in a pilot test project which involved usage of a new mobile loyalty program. RewardLoop designed a loyalty program which rewards customers based on spend per transaction through tapping into data from Prestons existing POS system.
The busiest POS station was chosen for the trial, which handles roughly around Prestons’ 60% daily transactions. A POS adaptor which is a hardware device was installed between the POS system and the receipt printer to listen in on the data stream. The adaptor reads each line of the receipt and uses the sum of the total bill to insert a unique QR Code into the bill’s footer which customers scan to collect and redeem rewards set by Prestons.
The entire loyalty program acted as a virtual stamp card that was accessible by the smart phone of the customers. Each visit to Prestons and a transaction meant customers collected stamps through the QR code. The stamps collected acted as loyalty points. To redeem those points a QR reader was used by the customers to get a redemption QR code. Post verification of the stamps a new transaction number is generated on the screen of the smart phone. Through this transaction number customers were able to redeem it for goods or services of their choice at Prestons. This entire cycle of sign-up, stamp collection and redemption of stamps was a self serve one and didn’t need any assistance from the existing staff, freeing up staff during peak or non peak hours to handle other manual activities.
Average spend of a customer prior to implementation of this program was $19. Customer engagement through post the launch of loyalty program went up multi folds and this was evident in their sales numbers. Their most frequent customer visited Prestons over 200 times and spent over $9,600 since signing up during the first week of the program. The top 10 customers have collectively spent more than $26,000 and visited more than 600 times. Average spend per customer on a single visit among Prestons rewards program members is currently around $37 i.e. almost a two fold increase in sales numbers since its inception in August, 2011.
On similar lines a mobile loyalty program tracking and measuring customer behavior and purchasing trends will help restaurant owners optimize their resource and truly offer a warm experience to their customers. Customer service is an important metric in the restaurant industry, a similar mobile loyalty program tied up to the customer service and customer retention will certainly affect customer engagement and drive sales.