Growing franchise restaurant wanted to encourage repeat visits and increase revenue.
Loyalty/rewards, stored value (wallet) and integrated mobile ordering, all combined into a single mobile app.
* Following the launch of $5 reward for rewards program sign-up
** Among rewards program customers after switch from item-based to value-based rewards
*** When customers switched to digital (app-based) rewards
Several years ago, Deric Rosenbaum, President, Franchise Consulting & Services Corp., and a Groucho’s franchise owner, recognized the potential benefits of offering a loyalty program. Over time, the company had adopted point of sale, gift/rewards, and CRM solutions from various vendors.
Unfortunately, these solutions didn’t talk to one another, so Deric found it difficult to understand customer purchase behavior and the impact the rewards program and marketing campaigns were having on sales. “I had a vision for what I wanted our loyalty technology platform to look like but at the time it didn’t exist in the marketplace.” His challenges are shared by many restaurants as well as franchise systems and franchise owners:
The Loyalty Journey
Under the leadership of Rosenbaum, Groucho’s Deli enlisted the help of Xenial (formerly Heartland Commerce) to connect disparate systems, make the company’s rewards program even more appealing to customers, and develop a program that would encourage franchise owners to promote rewards in-store.
Groucho’s also worked with digital partner ToGo to develop the Groucho’s Deli app. Although the mobile app offers integrated gift/stored value (wallet) and rewards, customers who prefer plastic gift and rewards cards can use these if they prefer.
It Began with a Vision
Rosenbaum and Cindy Sutton, Director of Brand & Marketing at Groucho’s Deli and a Groucho’s franchisee, outlined guiding principles including:
Connected Loyalty Program, End-to-end
All data, and all aspects of the loyalty, sales, and marketing ecosystem are connected, resulting in a customer experience that is seamless. In addition:
Deliver Perceived Value to Customers
Customers place a value on their personal information, and Groucho’s Deli hit the sweet spot when it launched the points equivalent of $5 in rewards for customers who sign up for rewards. After this incentive launched, Groucho’s doubled the number of contacts in their CRM database. According to Sutton, “For customers, it’s about the ‘give’. It’s about adding value.”
Keep the Brand Top of Mind
Groucho’s Deli leadership knew that there would be one ideal place they needed brand placement in order to keep Groucho’s top of mind: in an app on customer smartphones. Developed by ToGo, the Groucho’s app serves as the customer’s digital rewards card. In the app, customers can also find Groucho’s Deli locations, view rewards status, and place orders.
Improved Adoption, Promotion, and Engagement
In-store and online, Groucho’s promotes its rewards program heavily. Continuous, open communication with, and training for, store owners and employees helps spread enthusiasm and drives adoption.
Superior Connected Technology Underpins Growth
“As a technology partner, Xenial has been instrumental in helping Groucho’s achieve our technology vision, what I call ‘franchise in a box',” says Rosenbaum. “For a franchise system our size, and even among some of the bigger names in quick serve/fast casual, we have enviable data insights and some of the best-in-class technology. We appreciate the people we work with at Xenial. They are resourceful and responsive. And they have always been willing to roll up their sleeves and work with us to accomplish our goals.”