Article

For the love of loyalty: How mobile drives customer engagement

Enabling the mobile channel — perhaps through loyalty, ordering, payment or other capabilities — is the next big step for fast casual leaders looking to remain competitive and build customer loyalty.

April 29, 2016

By Andy Sirmon, NCR

Mobile guest engagement is becoming an expectation by consumers, especially where convenience and unified brand experiences are highly valued. In fact, it is the next big step in creating an omnichannel experience. Enabling the mobile channel — perhaps through loyalty, ordering, payment or other capabilities — is the next big step for fast casual leaders looking to remain competitive and build customer loyalty. A unified mobile experience will empower operators to drive interactions, convenience, sales and repeat business as well as increase guest satisfaction.

It's important to recognize that many trends are shifting consumer expectations and the ways restaurants serve their guests. For example, a report released by NRA/LevelUp last year stated that consumers who have placed an order online visit the restaurant 67 percent more frequently than customers who haven't.

In addition, Forbes.com stated, "Customers are in the driver's seat now and many businesses that don't have the technology and systems in place to support an omnichannel customer experience will be forced to take the backseat."

So mobile is clearly growing as a key channel for restaurant operators and is an important path towards enabling a true omnichannel experience for their guests.

The experience trumps all

Keeping the latest consumer trends in mind, operators find that it makes good business sense to implement a mobile channel, but they may not know what the right next steps are to take. Many brands may choose to "go mobile" with the end point in mind being the app itself rather than the experience the app offers. Some operators set their sights on mobile ordering and think "let's get an app out there" without thinking through the guest experience. But it's important to keep in mind that the key to generating greater revenue and higher guest satisfaction is by keeping the consumer experience paramount.

In short, consumers expect their mobile interaction with a brand to be seamless. But what does "seamless" mean? A seamless mobile experience can mean many things. For example, is it easy for consumers to log in? Is the app experience fluid between its ordering and loyalty capabilities? Are offers and rewards presented in a way that's easy for the guest to consume and redeem? Is it easy for guests to collect rewards for their purchases? If your app answers these questions in the affirmative, then you've set your mobile channel up for greater success.

Mobile helps drive revenue, efficiency

Today's consumers want increasing control over their transactions. You've probably seen this in the rising consumer demand for mobile ordering capabilities. While consumers love the convenience of mobile ordering, restaurant operators too are seeing the connection between the higher sales and greater guest satisfaction that a well-crafted mobile experience enables.

Consider this: recent studies have found that consumers who order on their smartphones spend incrementally more than those consumers who place their orders in the store. Why? One reason is that a mobile channel gives operators the ability to influence consumer behavior in ways that aren't possible in the store itself, whether it be through targeted offers, easier menu navigation, or suggested upsell opportunities.

In addition to an increase in average ticket value, mobile also helps optimize the labor force for greater efficiency. For example, each time an order is placed through a mobile app, that's one less customer occupying an employee's time at the counter. By spending less time interacting with customers at the counter, staff can focus on preparing and delivering orders for quicker service times and a better in-store experience.

For the love of loyalty

While mobile can drive efficiency for restaurant operators, it also can help create a better consumer experience through loyalty and rewards programs. And earlier this year loyalty research firm Colloquy reported a 107 percent increase in new restaurant loyalty program members over the previous year – so it's clear that loyalty programs are here to stay.

However, it's not just about a punch card. Consumers today are increasingly drawn to brands that interact with them, offer a personalized experience (i.e., "know them"), and reward them for their loyalty "automatically" as part of their experience in visiting the restaurant. Leading brands have recognized this and are finding creative ways to engage with their customers in even more personal ways — through their mobile devices. 

And as with mobile ordering, operators gain additional benefits from taking loyalty programs into the mobile channel. By enabling mobile loyalty capabilities, operators gain access to massive amounts of consumer data. Utilizing segmented and targeted consumer data allows operators to create a unique experience that is tailored specifically to the individual consumer. For example, now that you know that John prefers a chocolate milkshake with his entree, you can offer him a free milkshake with his next in-store visit. John leaves happy, and you solidify a repeat customer.

Boosting your brand presence

However, key components of a strong loyalty and rewards program are the consumer and the brand. Consumers tend to actively participate in loyalty and rewards programs for restaurants they frequent and with which they have a strong brand affiliation. Fortunately, fast casual operators have long understood the importance of developing their brands, resulting in a variety of authentic, unique experiences across the industry.

Operators should take the same care in building out their mobile channels. Remember, mobile is a channel that should be reflective of the brand, and should also provide a seamless way for guests to interact with the restaurant. Specifically, operators should work with their technology providers to leverage a platform that shares the same unique characteristics as their in-store brands.

The mobile user experience requires deep thought to connect with the in-store experience. When operators and technology providers work together strategically, the result is more than just ordering; it's a holistic brand experience that encourages repeat customers and increased loyalty. By combining this with the in-store labor efficiency improvements mobile enables, savvy operators will find themselves one step closer to owning a true omnichannel experience.