Loyalty Program Index 2022 - Digital Maturity - IN PARTNERSHIP WITH - Incisiv
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Driven by macro forces, the perennial challenge of increasing customer retention and loyalty just got bigger for consumer businesses. Digital Double-Down Ease of Switching Amazonification Undifferentiated Offering The path to purchase is no Shoppers can switch brands The competitive bar is Loyalty programs offer longer linear. Digital is the at the point of friction easier constantly being raised by the undifferentiated benefits and first point of entry. than ever before. likes of Amazon and Uber in an more of the same, resulting already uneven playing field. in customer fatigue. 85% 1 in 2 60% 50% of all customer journeys start on customers say they would of customers consider of customers think loyalty the digital channel, opening up switch to a new brand after one personalized shopping programs don't offer much more options and easy bad experience. experience a prerequisite for value. comparisons. brand loyalty. Incisiv's 2022 Loyalty Program Index Source: Incisiv Research
Shoppers expect improved experience, transparency and flexibility from loyalty programs of consumer businesses. COVID-19 brought about unprecedented disruption across restaurant and retail businesses, forcing store closures, moving most of the business to digital channels and significantly altering consumer behavior. With 85% of the Transparency customer journeys now beginning online, digital is the entry point to more consumer experiences than ever before. For retailers and restaurants alike, this change in behavior has brought with it a new set of customer expectations. This shift to digital has significantly increased customer expectations and their loyalty is increasingly difficult to earn. Experience Flexibility Experience offers personalized Transparency of program rules, tiers, Flexibility of participation in the loyalty interactions across the buying journey, earning, redemption options benefits and program: channels, redemption options, balancing pervasive self-service with how customer data is used. level of participation in the program, and empathetic human assistance. data sharing and use. E.g. I am willing to pay more at a retailer or E.g. Show me how many points I have, how close I E.g. Give me the option to do what I want and/or restaurant chain where I am offered a am to my next points redemption opportunity, where I want with my rewards, offer instant differentiated experience vs. one which offers a including complex scenarios that include third gratification and the ability to opt in or out of lower price. parties (such as delivery services). promotions. Incisiv's 2022 Loyalty Program Index
As digital becomes the front door to almost all customer touchpoints, consumer businesses with legacy loyalty programs and technology will struggle to derive competitive advantage and deliver customer value. The immediate response of restaurant chains and retailers to the digital shift caused by the events of the past few years- a quick cobbling together of a patchwork of systems to get the job • Even the most basic customer loyalty use case requires data done. However, it should not overlook the fact that loyalty unification, digitization and channel integration. E.g. Looking up my programs of most retailers and restaurant chains need to be loyalty points balance while using a mobile app for in-store pickup. reimagined to deliver value and meet evolving shopper needs. • Complex loyalty program use cases require extensive backend infrastructure. For instance, personalized rewards, promotions or discount offers need real-time analysis of a large volume of data (E.g. past purchases, browsing history, product attributes, inventory 23%* 7%* availability). YoY increase in QSR AOV for • Loyalty programs need to evolve from points earning and redemption YoY increase in QSR spend/1,000 loyalty members shoppers for loyalty members to a 360-degree customer engagement program. Incisiv's 2022 Loyalty Program Index *Loyalty Data Punchh Study
The benchmark of an excellent loyalty program is being set by technology and user-experience leaders across industries. Users can accrue points for using both Uber and Uber Eats. Members have to opt into this tiered loyalty program, which offers instant redemption options and transparency around points to accrue for the next redemption. 62% of U.S. households are enrolled in Amazon's Prime membership program and members spend $1,400 per year, ~2.5x more than non- members. Most digital customers expect instant gratification and Prime gives members their benefits immediately. What are the biggest gaps and opportunities for retailers and restaurant Apple does not have a program where shoppers can register and earn chains to improve loyalty program rewards. However, the brand automatically invites customers who spend more than $5,000 a year into its tier-based program. These capabilities and experience? members receive special offers and discounts on the latest Apple products. Apple drives brand loyalty largely through product Also, which retailers and restaurant chains offer the most mature innovation and purchase experience. loyalty program and experience for shoppers? Incisiv's 2022 Loyalty Program Index explores these topics. Loyalty members enjoy unlimited rewards based on their bookings via the website or app. The program does not rely on the accumulation of reward points. Instead, benefits are provided based on tiers, and there is no usage limitation or expiration period for member benefits. Incisiv's 2022 Loyalty Program Index
While some loyalty program capabilities have evolved, restaurant and retail brands still have to do a lot more to meet shopper expectations. Enrollment Structure & Features Ease of Use Customer Preferences 70% 67% 75% 72% 33% Customers prefer to manage Customers expect Customers prefer instant Customers expect Customers expect loyalty program loyalty programs via app surprise gifts discounts/redemptions personalized rewards specific helpdesk service Market Offering 26% 28% 16% 48% 11% Top 150 retailers and restaurant Retailers and restaurant chains Retailers and restaurant chains offer Retailers and restaurant Retailers and restaurant chains have a dedicated loyalty app send gifts, offers or discounts instant discount on purchases instead chains offer some form of chains offer loyalty program on special occasions of reward points personalization specific helpdesk service Incisiv's 2022 Loyalty Program Index
Incisiv's Digital Insights from Incisiv's Digital Maturity Benchmarks have been Maturity Benchmarks featured in leading publications Incisiv conducts detailed assessments of global retailers' digital capabilities based on its proprietary benchmarking framework, which combines shopper and executive insights with experience audits. Crucially, Incisiv's methodology considers the impact of specific digital capabilities on performance metrics that matter most, such as conversion, average order value (AOV), churn and customer satisfaction score (CSAT). Shopper Data Executive Insights Experience Audits Performance Impact Insights from 60,000+ Surveys spanning 2,500+ Detailed experience audits - Performance data and shoppers across multiple global consumer industry from eCommerce to store benchmarks from 250+ consumer industry executives. visits - across 500+ global global retailers. categories. retailers. Incisiv's 2022 Loyalty Program Index
Incisiv's Loyalty Program Index Structure & Features Program structure, benefits, assesses top convenience chains, redemption rules, gamification grocers and quick service and payment options 38 attributes restaurants on features and capabilities of their loyalty Enrollment Ease of Use programs across three key areas. Discovery, sign-up options, Customer support, membership types and communication, information personalization and The index is comprised of the top retailers and 17 attributes integration with restaurant chains (by annual revenue) across three order different industry segments. Each entity's capability and 23 attributes experience are assessed using an observational methodology. Loyalty Program Index 150 78 3 Banners - website and loyalty Program nuances and digital Industry segments covered apps capabilities assessed • Convenience • Grocery • Quick Service Restaurants Incisiv's 2022 Loyalty Program Index
Each assessment area includes table stakes and differentiating experiences, defined based on their overall level of adoption, perceived value by customers, and impact on key performance indicators (KPIs), such as average order value (AOV), conversion, customer satisfaction and traffic. Table Stakes: Foundational capabilities required to address key shopper expectations today. The absence of these capabilities has a negative impact on digital performance KPIs and customer loyalty. Differentiating Experiences: Advanced capabilities that address important emerging shopper expectations. The presence of these capabilities has a positive impact on digital performance KPIs and customer loyalty. Illustrative examples of table stakes and differentiating experiences Enrollment Structure & Features Ease of Use • A dedicated section for the loyalty program, • Presence of free loyalty membership • Access to physical and digital loyalty rewards and benefits • Ability to receive promotional offers and coupons membership cards • Loyalty program registration and account • Option to earn more loyalty points for online • Ability to scan the virtual card at the register management purchases vs. in-store and redeem points via app • Auto-enrollment to loyalty programs for • Presence of premium membership programs • Option to redeem points for in-store account holders • Availability of different clubs or schemes purchases • Access to joining rewards or bonus on loyalty • Access to extended benefits, such as fuel savings, • Dedicated customer service channel or registration exclusive access to promotions, discounts on resolution mechanism for loyalty members • Dedicated app for the loyalty program special events and gamification rewards • Personalized offers tailored to the loyalty member's preference Incisiv's 2022 Loyalty Program Index
Loyalty Program Index: Rating categories Laggards offer a severely Followers offer a basic digital Challengers offer a seamless Leaders offer the richest lacking digital maturity maturity experience, digital maturity experience digital maturity experience experience, missing even addressing most table-stake built on a solid foundation of within and across retail some basic table-stakes capabilities. Their capabilities. They offer some segments. They lead in functionality. experiences lack depth, and differentiated experiences, adoption of differentiated are light on adoption of but lack the depth and experiences, and are differentiated capabilities. coverage of leaders. functionally mature across most assessment areas. Adoption of table stakes: Medium Adoption of table stakes: Medium-High Adoption of table stakes: High Adoption of table stakes: High Adoption of differentiators: Low Adoption of differentiators: Low Adoption of differentiators: Medium Adoption of differentiators: High Incisiv's 2022 Loyalty Program Index
Banners rated as Loyalty Program Digital Maturity Index Leaders, in alphabetical order Convenience Grocery Quick Service Restaurants (16) (4) (18) Incisiv recognizes these top 38 banners as leaders in the Overall Loyalty Program Index within and across restaurant and retail segments. They are the benchmark for loyalty program capabilities and experience in 2022, offering differentiated capabilities across the shopping journey. The full leaderboard is available at the end of this report. Incisiv's 2022 Loyalty Program Index
01 |Enrollment Discovery and Sign-Up for Loyalty Membership Incisiv's 2022 Loyalty Program Index
ENROLLMENT: OVERVIEW WHY IT MATTERS WHAT WE ASSESS Seamless program Since 70% of customers engage more This section evaluates the information frequently with a brand where they are availability, ease of accessibility with activation and joining registered for the loyalty program, these various sign-up options and omnichannel incentives drive programs have a major impact on enrollment in the loyalty membership customer retention customer retention, satisfaction and journey. brand advocacy. Existing shoppers tend to spend 67% more than new shoppers and as such brands have to incur huge costs for 15% increase in loyalty users 17 total attributes assessed, new customer acquisition. witnessed by QSRs in 2021 compared to including: previous year.* So, how do brands attract more new shoppers to their loyalty program? • Availability of and accessibility to the loyalty program. 75% of shoppers Brands need to implement effective, are likely to switch brands for a better or • Availability of different sign-up methods, user-friendly enrollment strategies preferred loyalty program. such as program activation time, auto that generate higher ROI. Seamless participation, omnichannel sign-up, enrollment in store or online. accessibility and joining incentives are some of the top features for 60% of shoppers • Access to joining incentives and app- attracting shoppers, and improving cited easy accessibility, enrollment and specific rewards. revenue and profitability over the great digital experience as the most desired long run. factors in their loyalty program. Incisiv's 2022 Loyalty Program Index *Loyalty Data Punchh Study
ENROLLMENT: OVERVIEW C-stores lead the Industry Convenience Grocery QSR pack in omnichannel Average enrollment capabilities, followed Membership enrollment on website 71% 74% 74% 66% by QSRs and grocers Owing to their omnichannel Membership joining 26% 22% 14% 40% presence, rich mobile app bonus/incentive functionality and engagement, convenience stores recorded maximum numbers for active Standalone application 26% 58% 4% 16% for loyalty program membership and participation. QSRs managed to gather scores Membership enrollment 37% 52% 40% 18% through a comprehensive set of in-store rewards and joining incentives. However, grocers lagged Auto-enrollment for considerably with a long road 60% 72% 36% 72% membership ahead for upscaling on multichannel enrollment and activation. Incisiv's 2022 Loyalty Program Index
Banners rated as Loyalty Program Index Leaders in Enrollment, in alphabetical order Convenience Quick Service Restaurants (24) (16) Incisiv recognizes these 40 banners as leaders in Loyalty Program Enrollment within and across restaurant and convenience segments. None of the grocery retailers assessed made it to leaders segment. Building upon a solid foundation of table-stake capabilities, they lead in the adoption of differentiated capabilities. The full leaderboard is available at the end of this report. Incisiv's 2022 Loyalty Program Index
BEST CASE EXAMPLES FOR ENROLLMENT CONVENIENCE STORES Email communication with detailed Welcome incentives for loyalty redemption guidelines registration Well orchestrated communication plan creates a feeling of inclusivity 78% of shoppers prefer to access their rewards online and use them and makes the customer feel wanted. To personalize the loyalty immediately. Providing instant welcome bonuses or discounts enhances membership experience, retailers are sending, detailed emails to the customer experience by creating customer delight. Currently, only members (detailing program structure, tiers, benefits etc.) within 2 22% of convenience stores offer welcome rewards to new users. hours of enrollment. This is also a great way to increase program awareness and promote participation. RaceTrac offers its users free beverages upon program registration once they make their first in-store purchase. Huck's sends its members an interesting email with details on redemption process and pictures. Incisiv's 2022 Loyalty Program Index
BEST CASE EXAMPLES FOR ENROLLMENT GROCERY Text message enrollment Exclusive in-app features When it comes to loyalty program enrollment, customers look for 57% of shoppers like to engage with loyalty programs on their mobile multichannel registration and ease of sign-up. Allowing shoppers to phones. Providing additional functionality and benefits in the app helps register for the loyalty program via simple options like text message increase app usage, as well as customer satisfaction since a majority of increases convenience, making the entire process seamless. users prefer apps for placing orders. Currently, only 4% of grocery retailers offer enhanced rewards or benefits on their apps. Brookshire's rewards program allows users to register for membership via text message by texting "CELEBRATE" to 59652. 99 Cents Only has weekly deals, special offers, in-store rewards and exclusive product previews for users via the mobile app. Incisiv's 2022 Loyalty Program Index
BEST CASE EXAMPLES FOR ENROLLMENT QSR Dedicated app for loyalty Gathering shopper data for a rewards personalized brand experience 75% of shoppers would engage more with a brand that has a mobile- As shopper expectations evolve, brands are gathering key consumer data, friendly loyalty information system. Reward apps are a great way to including demographics, lifestyle and purchase intent via shoppers' increase engagement, provide exclusive benefits, and improve customer browsing history to offer them personalized promotions, product retention rates. Currently, only 16% of restaurant brands have recommendations and appealing content. These efforts help brands dedicated loyalty apps. increase engagement levels and customer satisfaction scores. Personalization results in a 6.4x increase in satisfaction with a loyalty El Pollo Loco rewards app "Loco rewards" allows shoppers to earn program. points with every order, receive a birthday reward and special offers throughout the year. It also enables shoppers to order ahead, pay and Moe's prompts shoppers to provide their favorite location, along with save favourites. additional demographic information, when they sign up for the loyalty program. Incisiv's 2022 Loyalty Program Index
02 | Structure and Features Ease of Earning and Redeeming Rewards Incisiv's 2022 Loyalty Program Index
STRUCTURE AND FEATURES: OVERVIEW WHY IT MATTERS WHAT WE ASSESS Reimagining the loyalty With 37% of shoppers willing to pay to This section assesses the various join or upgrade to a higher tier of their program strategy and membership tiers, capabilities, and the loyalty membership, premium loyalty experience of using the rewards and experience programs connect well with shoppers. benefits for an enhanced shopping experience. The shift from traditional loyalty programs has led to increased focus 67% of shoppers on customer needs and expectations are motivated to join the loyalty program yielding lucrative benefits for them. that offers instant discounts or rewards on 37 total attributes assessed, purchases including: It has become critical for brands to stay ahead of the game with new • Ability to redeem rewards across stores trends and valuable strategies. A 36% of shoppers and online platforms. well-structured program with shop more frequently with brands where esteemed privileges and value- they can earn fuel rewards • Access to information on redemption, added benefits yields a profitable such as expiry of points, minimum and rewarding experience for balance and incremental redemption. shoppers. Gamification rewards, 46% of loyalty shoppers free giveaways, fuel savings, instant • flexibility of using the brand's closed- look out for premier or exclusive access to discounts and free shipping are the loop wallet. sales and promotions key factors that encourage shoppers to invest in loyalty programs. • Access to other paid program benefits, such as delivery subscriptions. Incisiv's 2022 Loyalty Program Index *Loyalty Data Punchh Study
STRUCTURE & FEATURES: OVERVIEW Quick service Industry Convenience Grocery SR Q Average restaurants outpace convenience stores Tiered membership 43% 11% 48% 16% 30% 4% 50% 12% and grocery retailers program with their program structure, usage and Multiple loyalty schemes/clubs 38% 17% 50% 20% 8% 22% 56% 8% (beverage club, fuel club etc.) characteristics Paid program for delivery Driven by the ease of earning and or other services 8% 34% 6% 18% 12% 64% 6% 20% redeeming rewards, quick-service restaurants displayed high digital engagement. 52% of QSRs offer Gamification rewards for loyalty members 12% 17% 4% 16% 4% 6% 28% 30% rewards for special events, 4x higher than grocery and 5x higher than C-stores. Exclusive or premier 35% 15% 26% 10% 32% 12% 46% 24% access to sales/promotions Grocers exhibited high adoption numbers in terms of providing various loyalty clubs and paid Rewards on birthdays or 18% 28% 22% 14% 20% 18% 12% 52% memberships. special events Incisiv's 2022 Loyalty Program Index
Banners rated as Loyalty Program Index Leaders in Program Structure and Features, in alphabetical order Convenience Grocery Quick Service Restaurants (12) (9) (19) Incisiv recognizes these top banners as segment-wise leaders in Loyalty Program Structure and Features within and across restaurant and retail segments. Building upon a solid foundation of table-stake capabilities, they lead in the adoption of differentiated capabilities. The full leaderboard is available at the end of this report. Incisiv's 2022 Loyalty Program Index
BEST CASE EXAMPLES FOR STRUCTURE AND FEATURES CONVENIENCE STORES Instant discounts on purchases Exclusive in-store instead of reward points services As shopper preferences evolve, they are no longer satisfied with In addition to in-store redemption options, retailers are improving the traditional points earning and redemption. Discounts and coupons loyalty member experience by providing special in-store benefits, such as instead of reward points are one of the key drivers for loyalty programs priority checkout and curbside pick-up services. Adding these benefits is a with 61% of shoppers using these coupons. To adapt to these changing great way to retain existing customers and improve their lifetime value. needs, retailers are enticing shoppers with cash benefits, exclusive Currently, only 6% of convenience store retailers offer in-store benefits to promotions and freebies. Currently, only 36% of convenience store loyalty members. retailers offer non-conventional loyalty perks on purchases. Cumberland Farms offers loyalty members convenient order fulfillment Casey's allows loyalty members to convert points accrued to cash or fuel options along with faster checkout. discounts. Incisiv's 2022 Loyalty Program Index
BEST CASE EXAMPLES FOR STRUCTURE AND FEATURES GROCERY Special member-only Fuel savings through reward points benefits and discounts Most shoppers who join loyalty programs want to feel valued, yet only 73% of shoppers say that the best savings come from in-store purchases 41% believe that they are a part of an exclusive group. Special access to that offer fuel discounts. In addition to discounts on products, allowing promotions and perks by loyalty members helps with customer customers to redeem points or fuel discounts is a great way to increase retention and improves the frequency of repeat purchases. Currently, retention rates. Only 38% of grocery retailers currently allow for fuel only 12% of grocery retailers offer access to member-only deals or perks or redemptions. promotions. Kroger has a fuel rewards program where customers get fuel points when Harris Teeter offers exclusive weekly deals on items exclusively to its they purchase groceries at Kroger. loyalty club members. Incisiv's 2022 Loyalty Program Index
BEST CASE EXAMPLES FOR STRUCTURE AND FEATURES QSR Gamification to earn bonus Premium points for referrals and rewards purchases during special events 53% of shoppers feel that the presence of games makes the program 66% of shoppers would join a loyalty program if it builds an ongoing experience enjoyable and 81% of loyalty members take advantage of relationship with their favorite brand. Offering bonus points to loyalty these challenges to earn bonus points or rewards. Gamification increases members during special events like tournaments helps build an emotional engagement rates, improves product awareness and helps generate connection with the brand, setting it apart from its competition by more sales. Currently, only 17% of restaurant brands offer this creating a superior customer experience. Currently, only 12% of restaurant functionality on their website. brands offer this feature. Starbucks has games and challenges exclusively for its loyalty members Moe's Southwest Grill offers its loyalty members bonus points during to earn more stars. special tournaments for referring friends and even when the referrals make their first purchase. Incisiv's 2022 Loyalty Program Index
03 | Ease of Use Omnichannel Integration and Personalization Incisiv's 2022 Loyalty Program Index
EASE OF USE: OVERVIEW WHY IT MATTERS WHAT WE ASSESS Omnichannel integration With 91% of consumers are more inclined This section assesses ease of usage with to spend with brands offer some form of and personalization to multichannel integration, rewards tracking, personalization (offers and digital membership, special resolution drive the future of loyalty recommendations). Understanding mechanism and personalized program consumer behavior and digital communications or offer updates. integration are critical KPIs for an Due to ever-evolving customer effective loyalty program. expectations of digital integration and receiving personalized 72% of shoppers 23 total attributes assessed, communications, rendering more responsive and data-driven prefer a brand that offers a personalized including: experience with additional rewards and experiences has become imperative benefits. • Availability of self-help tools, including for retailers. Broadening loyalty access to customer service and FAQs. touchpoints through personalized communications, frictionless Over 70% of shoppers • Availability of a personalized shopping payment and digital engagements are more likely to participate in a loyalty experience, including offers and tend to build higher satisfaction program that provides access to loyalty coupons. levels, thereby fostering cards and rewards via its mobile app. relationships at every step of the • Effectiveness of utilizing the dual modes loyalty program. of membership via physical and virtual 2.5%* increase in check size 75% of shoppers cards. of loyalty members over anonymous are more likely to shop with the brand shoppers', for QSRs in 2021.* whose app allows quick transactions. Incisiv's 2022 Loyalty Program Index *Loyalty Data Punchh Study
EASE OF USE: OVERVIEW While convenience Industry Convenience Grocery QSR Average stores overshadowed grocers and QSRs in Scan virtual loyalty card at 43% 48% 30% 50% offering customer register service, quick- Redeem rewards via dedicated service restaurants app 38% 50% 8% 56% offer better digital integration and Redeem rewards online for 8% 6% 12% 6% personalization charity QSRs displayed high digital Execute curbside or takeaway 12% 4% 4% 28% usability, ease of fulfillment and via loyalty app personalized communications. Personalized communication Yet C-store and grocery retailers 35% 26% 32% 46% around membership managed to score higher adoption numbers for physical loyalty membership and dedicated Dedicated support line for 18% 22% 20% 12% resolution mechanism. loyalty program Incisiv's 2022 Loyalty Program Index
Banners rated as Loyalty Program Index Leaders in Ease of Use, in alphabetical order Convenience Grocery Quick Service Restaurants (12) (6) (18) Incisiv recognizes these top banners as segment-wise leaders in Loyalty Program Ease of Use within and across restaurant and retail segments. Building upon a solid foundation of table-stake capabilities, they lead in the adoption of differentiated capabilities. The full leaderboard is available at the end of this report. Incisiv's 2022 Loyalty Program Index
BEST IN CLASS EXAMPLES FOR EASE OF USE CONVENIENCE STORES Redeem rewards for Execute order transactions via charity loyalty app Allowing shoppers to use their loyalty points to make donations creates Mobile apps for loyalty programs have a robust rewards system and easy- a sense of responsibility and makes them feel connected by building a to-use features. The addition of payment and order fulfillment relationship with the brand. Brands perceived as meaningful and capabilities via the loyalty app increases user convenience and improves supportive towards a cause have earned a 9x increase in wallet share. app adoption rates. Currently, only 2% of C-store retailers offer this Currently, only 6% of C-store retailers allow points redemption for functionality. charity. Cumberland farms allow its shoppers to complete purchase transactions Casey's enables its shoppers to redeem rewards for charity by donating for curbside pickup via its dedicated loyalty app "SmartPay rewards." their points to a local school. Incisiv's 2022 Loyalty Program Index
BEST IN CLASS EXAMPLES FOR EASE OF USE GROCERY Dedicated support line for members One-click rewards redemption via app 46% of shoppers have increased their business with a retailer that offers 34% of shoppers cite a confusing redemption process as one of the main exceptional customer service. Dedicated channels exclusively for pain points when using loyalty programs. An easy-to-use, efficient and members are a great way to improve the experience by making loyalty quick way of redeeming rewards helps retain customers, improves app program members feel valued. Currently, only 12% of grocery retailers usage and reduces bounce rates. Currently, only 8% of grocery retailers offer dedicated customer support for loyalty members. allow shoppers to redeem rewards via a dedicated mobile app. Hy-Vee has a designated customer support line, "The Red Line," for Albertsons allows shoppers to redeem fuel rewards and pay in one click via Hy-Vee Plus members' service and resolution. the "One Touch Fuel" mobile app. Incisiv's 2022 Loyalty Program Index
BEST IN CLASS EXAMPLES FOR EASE OF USE QSR Personalized offers and Easy payment via bar code scanner at promotions register 77% of shoppers say that loyalty programs should offer personalized 43% of shoppers say that physical cards are the biggest obstacles to rewards. With data-driven experiences gaining prevalence, retailers are claiming rewards. Shoppers often require physical loyalty card numbers increasing the use of loyalty data to provide personalized services like for online registration. Providing a digital rewards card increases offers, product recommendations and in-store discounts. convenience, thereby improving customer satisfaction. Currently, 50% of Personalization builds brand loyalty. Currently, only 46% of restaurant restaurant brands offer virtual loyalty cards through online registration brands offer this functionality. on their websites. McAlister's Deli offers exclusive promotions and personalized offers to Steak N Shake has a virtual loyalty card with a QR code scanner allowing its loyalty program members. shoppers to scan receipt barcodes as well. Incisiv's 2022 Loyalty Program Index
Leaderboard Incisiv's 2022 Loyalty Program Index
The Complete 2022 Loyalty Program Index Leaderboard Leaders CONVENIENCE GROCERY QUICK SERVICE RESTAURANTS Alltown Albertsons Arby's As part of its 2022 Loyalty Program Alta Convenience Aldi Baskin-Robbins ampm Big Lots Bojangles Index, Incisiv assessed 150 brands Applegreen BJ's Wholesale Club Burger King Bolla Market Brookshire's Carl's Jr. across 3 industry segments. The Casey's General Stores Costco Checkers and Rally's CEFCO Cub Foods Chick-fil-A complete list of assessed brands is Chevron ExtraMile Circle K Dollar General Family Dollar Chipotle Church's Chicken provided here. Convenient Food Mart Cumberland Farms Family Fresh Market Fareway Stores Culver's Dairy Queen Duchess Festival Foods Del Taco Fas Mart Food City Domino's GetGo Food Lion Dunkin' Each retailer assessed was given an GoMart Giant Eagle El Pollo Loco Huck's Grocery Outlet Firehouse Subs overall rating, as well as a Hy-Vee Gas Hannaford Five Guys Jacksons Food Stores Harris Teeter Freddy's Frozen Custard functional-area rating across Joe's Kwik Mart Kum & Go H-E-B Hy-Vee & Steakburgers Hardee's enrollment, structure and features, Kwik Trip Little General Stores Ingles Markets Jewel-Osco In-N-Out Burger Jack in the Box Loop Neighborhood Kroger Jersey Mike's and ease of use. Incisiv's analysis Love's Travel Stops & Lidl Jimmy John's Country Stores Lowes Foods KFC found: MAPCO Express Market Basket Krispy Kreme Maverik Martin's Little Caesars Mirabito Meijer Marco's Pizza Murphy USA Piggly Wiggly Midwest McAlister's Deli • 38 Leaders Nouria convenience stores Par Hawaii 99 cents only stores Price Rite McDonald's Moe's Southwest Grill • 42 Challengers Par Mar Stores Pilot Flying J Pricechopper Publix Panda Express Panera Bread Plaid Pantry Raley's Supermarkets Papa John's • 33 Followers QuickChek Save A Lot Papa Murphy's QuikTrip Save Mart Pizza Hut • 37 Laggards RaceTrac Schnuks Popeyes Raceway Smart & Final Qdoba Mexican Grill Rebel Stores Sprouts Farmer Markets Raising Cane's Chicken Fingers Rocket Stores Stater Bros. Sonic Drive-In Get in touch to request detailed Royal Farms Rutter's Target Tops Friendly Markets Starbucks Steak 'n Shake information about your rating, or 7-Eleven Sheetz Trader Joe's Walmart Subway Taco Bell Stewart's Shops Wegmans Tim Hortons to request a custom benchmark. Sunoco Weis Markets Tropical Smoothie Cafe Terrible Herbst Wesley Kosher Wendy's Throntons Whole Foods Market Whataburger Timewise Winco White Castle Travel Centres of America Winn Dixie Wingstop Wawa Zaxby's Incisiv's 2022 Loyalty Program Index
IN PARTNERSHIP WITH ABOUT INCISIV ABOUT PUNCHH Incisiv is a peer-to-peer executive network and industry For more than 40 years, PAR’s (NYSE: PAR) cutting-edge products and services have helped insights firm for consumer industry executives navigating bold and passionate restaurant brands build lasting guest relationships. We are the partner digital disruption. enterprise restaurants rely on when they need to serve amazing moments from open to close, during the most hectic rush hours, and when the world forces them to adapt and overcome. Incisiv offers curated executive learning, digital maturity More than 100,000 restaurants in more than 110 countries use PAR’s restaurant hardware, benchmarks and prescriptive transformation insights to software, drive-thru, and back-office solutions. clients across the consumer and technology industry spectrum. With the acquisition of Punchh Inc., a leading SaaS-based customer loyalty and engagement solutions provider, PAR has become a Unified Commerce provider for enterprise retailers. incisiv.com More than 260 global enterprise brands, including Yum! Brands (NYSE: YUM), Denny’s (NASDAQ: DENN), TGI Fridays, and Casey’s (NASDAQ: CASY) rely on Punchh to grow revenue by building customer relationships. To learn more about the Punchh Loyalty, Offers and Engagement Platform, visit: www.punchh.com
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