Focus on Loyalty Guest

The guest's experience is essential to every brand to build a loyal consumer base that spreads the word and provides consistent revenue. The cost of acquiring a new guest can be 5 to 25 times higher than retaining an individual, which is why loyalty members have a radiating positive effect that is of immense value (Brooke, 2016). A recent study by RJ Metrics summarized that the top 10 percent of loyalty guests spend three times the amount of the bottom 90 percent (Brooke, 2016). If the average, loyal guest pays $40 per month and the top 10 percent spend three times, which is $120 per month, it results in a $960 difference per year per person. Considering the size of some companies, it can be in the hundreds of millions of dollars per year. The competition landscape is very high in the QSR industry, forcing companies to focus on their loyal guest and improving that experience.

Companies are looking at technology to help drive customer lifetime value, as brands recognize that rewards systems and personalization are of the essence. Virtual Incentives released a study in 2016 that emphasized reward systems and the benefits of personalized incentives (2022). Fifty-six percent of participants said they were more likely to consider a brand if it received a personalized incentive. The majority agreed that it makes the brand look smart and caring (Virtual Incentives, 2022). McDonald’s invested heavily in technology in the past few years and bought a system that can personalize the menu board based on what item you chose and many other factors. Personalized advertisement has been around for years, but QSR restaurants have not captured much of this possibility. As research proves the benefits behind personalization for rewards, companies build their capabilities to capture the market in a more individual style.

• Brooke, C. (2016, December 20). 9 Key Customer Lifecycle Stats for 2017. Business 2 Community. https://www.business2community.com/marketing/9-key-customer-lifecycle-stats-2017-01736233

• Virtual Incentives. (2022, June 28). New Research Study Reveals Consumer Preferences for Incentives and Rewards. https://www.virtualincentives.com/new-research-study-reveals-consumer-preferences-incentives-rewards/