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Leading Restaurant Chain Capitalizes on the Power of Personalization in a Loyalty Program
Technology Category
- Analytics & Modeling - Predictive Analytics
- Analytics & Modeling - Machine Learning
Applicable Industries
- Food & Beverage
- Retail
Applicable Functions
- Sales & Marketing
- Business Operation
Services
- Data Science Services
- Software Design & Engineering Services
- System Integration
The Challenge
The restaurant chain, with close to 2,000 outlets across the country, had a loyalty card program that executives didn’t believe was living up to its potential. The program connected with approximately 20 million program members via email, delivering a mix of company news and updates along with special recommendations and product offers. Marketers particularly wanted to improve the quality and effectiveness of those emails and better understand the best messages and timing for customers, on an individual basis. The company approached Antuit to revamp the loyalty program in line with three primary business objectives: increase sales through larger ticket values, improve profit, and boost the number of transactions or customer visits, with the ability to toggle among those objectives on a flexible basis.
About The Customer
One of the best known fast casual restaurants in the U.S. has been able to leverage targeted improvements to its customer loyalty program to drive millions of dollars in additional revenue, with the promise of more to come as the company builds on its success at personalization. The restaurant chain operates close to 2,000 outlets across the country and has a loyalty card program that connects with approximately 20 million program members via email. The company sought to improve the quality and effectiveness of its email communications and better understand the best messages and timing for customers on an individual basis. By partnering with Antuit, the restaurant chain aimed to revamp its loyalty program to increase sales, improve profit, and boost customer visits.
The Solution
Antuit started the engagement with a limited-duration pilot program, during which all the loyalty program’s customer information was ingested and analyzed, to determine what those customers were buying, when, and where, along with relevant demographic information. The customer account records that Antuit built from this data provided a longitudinal understanding of customers and how they interacted with the restaurants, looking at variables such as: Did they visit only on weekdays? Were they consistent in the food that they ordered? How did they react to specific special offers? Antuit then coded all of the content in the messages available for emails to loyalty program members. This involved classifying the messages in terms of their emphasis on healthy eating, seasonal offerings, savory specialties, salads vs. other entrees, beverages, special offers, and several other variables. Next, Antuit built a model that blended customer data with the message variables and enabled the restaurant chain to identify the right piece of content for customers and personalize it, individually, on an ongoing basis. This approach enabled the Antuit model to track what individual customers did after they received their program emails and analyze through artificial intelligence the most effective messages in terms of driving increased loyalty customer activity.
Operational Impact
Quantitative Benefit
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