Competition in the restaurant world is more intense than ever before as restaurants battle it out for customer loyalty. The ability to keep pace with evolving customer expectations and stand out in this competitive landscape is separating the winners from the losers.
Top challenges restaurants face today include fast and effective implementation of new technology, consumer marketing overload, the disruption of third-party ordering, the fickle tastes of millennials, and the list goes on. If you’re relying on a legacy loyalty and engagement system, you’re giving your competitors a head start.
To keep up, restaurant operators must put themselves in their guests’ shoes to compete and create a compelling experience that will build loyalty, frequency, and spend. Diners today represent a far more tech-savvy customer audience and want experiences that are personalized, convenient, and rewarding. Modern restaurant consumers:
- Demand speed and convenience.
- Embrace brands that share their values and their passions.
- Remain fiercely loyal to those brands who listen and respond.
- Expect personalization and have zero tolerance for brands who interact with them without considering their preferences, purchases, and desires.
Restaurant operators need to address these expectations with connected, intelligent and “in the moment” interactions. Embodying digital DNA that taps into innovation at all levels of the experience will allow them to out-innovate their competitors in terms of speed to market and quality of experience.
McKinsey, the management consulting company, has researched and documented findings from loyalty programs across industries to help brands evolve their strategies — identifying key failings and rethinking their restaurant loyalty technology solutions, program design, and loyalty goals.
If your legacy loyalty programs mirrors one or several of these three traits that McKinsey identifies as the sources of poor results, it’s likely your legacy system is indeed holding your business back. Here’s why:
- Copycat Programs
- Unoriginal, copycat loyalty programs are ineffective and poorly-run programs and customer experiences can even “destroy value.”
- Lagging in Leading-Edge Capabilities
- Commodity programs that are easy to copy often don’t take advantage of the latest capabilities available to consumers such as mobile ordering or payments.
- Set & Forget
- Companies often take a “set it and forget it” attitude to programs that don’t keep up with the changes in the marketplace. If you’re not evolving, you’re going to get left behind.
In this fiercely competitive landscape, it’s simply not enough to just “check the box” with your loyalty program. A generic solution won’t cut it. Learn more about how your legacy solution might be holding you back (and what to look for in your replacement) in this complimentary ebook: