If restaurants see that a coupon or offer that they are sending is particularly popular amongst their customers, they know it will drive traffic through their doors. This is something that smart marketers track and report on every day in the industry. High redemption rates of customer rewards are a great indicator of how well a business’s loyalty program is working – however, when tracking and reporting these redemptions, it can be tricky knowing which metrics to measure.
That’s Where Data Comes In
The accumulation of big data gives restaurant and retail locations a better view of which marketing content is the most effective at each stage of the customer relationship. Forrester found that big data and analytics solutions increase marketers’ ability to look beyond campaign performance and focus on how to make customer relationships more successful and longer lasting. When examining trends to see what offers earn the most redemptions, we focus on three main areas that we know are important to businesses.
1 – Examining Marketing Tactics That Drive Average Spend Per Transaction
If an offer is increasing the average ticket size at your restaurant, it is performing exactly how you want it to! If a customer usually comes in to buy a sandwich for lunch, sending a corresponding offer encouraging them to buy a soda or chips as well can help drive your average ticket.
2 – Identifying How Businesses Can Best Push Trial of New Products and Services
Often, the seasons influence the trial of new products and services for businesses. Around Thanksgiving, a restaurant may introduce a turkey sandwich. During the summer months, retail locations may want to promote their new summer line. And on special holidays like Valentine’s Day, salons will offer a specific package to romance their guests into visiting their location. The key with new products and services is ensuring consumers know it’s a special, one time offer they can’t purchase on a regular day.
3 – Increasing Foot Traffic
A constant goal for most businesses is to get their consumers to visit more frequently. To ensure frequency, brands must strive for loyalty. If a customer has visited a store once, incentive offers are a great way to entice them to come back. Targeted offers increase guest loyalty as their personal nature tend to make customers feel catered to.
Using Measurement to Drive Action
With any of these three goals in mind, different measures must be taken in each situation produce the most positive effect on your bottom line. This all starts with the collection of user and transaction data from your customers. This data becomes even more powerful when it is used to drive actions. Ultimately, businesses want to understand how customers are engaging with their brand. And to drive actions that have a positive effect on engagement, customer data must be analyzed to identify which offers or marketing tactics drive these three key trends. But to truly understand which offers are working best, customer data must be paired with marketing attribution insights. Marketing attribution insights shed light on which aspects of the media mix are most effective – are customers redeeming their coupons online, through a SMS text club, or in-store at POS? With both analytics and attribution in place, businesses can fully understand which offers, marketing tactics and products preform best in specific locations when presented to unique customers.