Technology

Thanx adds automated dashboards to measure loyalty programs

Provided

August 2, 2023

Thanx, a loyalty and guest engagement platform for restaurants, has created four automated reporting dashboards —Thanx Capture Rate, Thanx Activation Rate, Thanx Retention Rate and Thanx Effective Discount Rate — designed to measure and improve loyalty program performance and drive more incremental revenue.

These innovations help brands uncover more sophisticated insights from their loyalty program to achieve Starbucks-like penetration and profitability, according to Zach Goldstein, CEO and founder of Thanx. Whereas legacy platforms often focus on surface-level metrics such as program signups or loyalty member average check, Thanx helps brands more comprehensively analyze true program performance:

"Loyalty programs continue to be a critical part of the overall revenue strategy for restaurants," Goldstein said in a company press release. "But it's also a big investment that must explicitly demonstrate ROI. There are some solutions that are much cheaper than Thanx, but they offer no proof of driving profitable customer change; at Thanx, we put our money where our mouth is."

The dashboards include:

• Thanx Capture Rate, which measures how effectively brands are reaching customers by calculating the percent of total revenue attributed to a known member. Unlike "Participation Rate," Capture Rate ensures a loyalty program is attracting the most important regular customers, not the most one-time signups.
• Thanx Activation Rate, which measures the new guest impact of a brand's loyalty program by calculating the percentage of first-time customers who make a third purchase within 120 days. In measuring activation — including conversion rates at first, second, and third purchase, and at different time intervals — brands can better measure efforts to convert one-time customers into repeat guests. Three-time purchasers average six to 15 times the lifetime value of one-time customers.
• Thanx Retention Rate, which measures the stickiness of returning guests enrolled in loyalty, shining a light on the effectiveness of retention efforts once guests become regulars.
• Thanx Effective Discount Rate, which clarifies the actual cost of a loyalty program and how efficiently marketing is driving customer change. Thanx customers use EDR to monitor the financial impact of promotions on customer behavior and can use Thanx Non-Discount Rewards such as industry-exclusive Hidden Menu functionality to directly decrease EDR without sacrificing Activation or Retention.

These reports are available directly within the Thanx dashboard and visualize real-time customer data to help marketers make iterative improvements to their guest engagement strategy to yield maximum ROI and profitability, according to the release.