As the world emerges from the pandemic, the restaurant industry has witnessed shifts in gift card sales trends. Paytronix’s Restaurant Gift Card Sales Report: 2023 reveals intriguing insights into how full-service restaurants (FSRs) and quick-service restaurants (QSRs) have experienced changes in gift card purchases. Additionally, inflation has influenced guest spending habits, leading to an upsurge in higher-value gift cards. In this blog, we explore the key findings of the report, highlighting the gift card sales patterns and redemption profiles observed in the first half of 2023.
Gift Card Sales Trends
The report underscores that FSRs have observed an increase in gift card sales as the pandemic recedes. On the other hand, QSRs, which experienced a boost in gift card purchases during the pandemic, have seen a decline in sales. This shift reflects changing consumer behaviours and preferences as dining patterns evolve.
The months of November and December consistently witness a significant surge in gift card sales, accounting for nearly half of the total annual sales. Interestingly, a second spike in sales occurs in May and June, colloquially known as the “Moms, Dads, and Grads” period, when many celebrate important milestones. Other first-half-of-the-year holidays, such as Valentine’s Day and Easter, also contribute to increased gift card purchases.
Redemption Profiles
The report delves into the redemption patterns of gift cards tracked by Paytronix. Notably, the redemption rates at 180 days for cards sold in 2022 stood at 57%. Although this figure is relatively stable compared to 2022, it remains lower than the pre-pandemic levels observed in 2019.
One noteworthy trend is the difference in redemption rates between QSRs and FSRs. While QSR gift card redemptions have contributed to the overall lower redemption rate, fine-dining establishments have achieved a new high in redemption rates in 2022. This disparity could be attributed to consumer preferences for dine-in experiences in high-end restaurants as the world reopens and restrictions ease.
Physical vs. E-Gift Cards
Around Mother’s Day and Father’s Day, the report identifies trends related to the preference for physical versus electronic gift cards. These holidays prompt a demand for tangible, sentimental gifts, leading to increased sales of physical gift cards. On the other hand, throughout the year, e-gift cards have gained popularity due to their convenience and suitability for last-minute gifting.
Download the report
The Restaurant Gift Card Sales Report 2023 from Paytronix provides valuable insights into the evolving landscape of gift card sales in the restaurant industry. The pandemic’s impact on consumer behaviour, combined with inflationary pressures, has shaped gift card purchase patterns. As the industry adapts to changing preferences, fine-dining establishments have experienced heightened redemption rates, while QSRs have navigated fluctuations in sales.
The report serves as a valuable resource for restaurant operators and marketers seeking to understand and leverage the trends in gift card sales. As we look ahead to the rest of 2023, it will be intriguing to observe how consumer habits continue to evolve and shape the future of the restaurant gift card market.
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
During the pandemic, many brands turned to third-party ordering services as a lifeline to maintain their business and enable delivery services. However, as we move into a post-pandemic reality, brands are realising the significant advantages of having a first-party ordering channel alongside third-party platforms. In this blog post, we will explore why first-party ordering is becoming increasingly important, the unique traits of first-party customers, and how brands can enhance the ordering experience to maximise customer loyalty and revenue.
The Continued Relevance of Third-Party Ordering
Before delving into the benefits of first-party ordering, it’s essential to acknowledge the ongoing value of third-party platforms. Even as brands strive to convert third-party customers into first-party patrons, third-party services will remain an integral part of customer acquisition strategies. Restaurants and convenience stores can tap into a larger customer base and expand their reach through these platforms.
The Advantages of First-Party Ordering
Paytronix, in their recent online ordering report, reveals that first-party ordering customers exhibit several distinct characteristics compared to their third-party counterparts. These advantages make a compelling case for brands to prioritise their first-party ordering channels:
Increased Order Value: First-party customers tend to order higher-value items more frequently than those using third-party platforms. This higher average order value translates into increased revenue for businesses.
Generous Tipping: First-party customers are more likely to tip larger amounts. Their appreciation for the convenience and quality provided by the brand’s direct ordering system often reflects in their willingness to reward the service with a generous tip.
Brand Loyalty: First-party customers are more likely to be part of a brand’s loyalty program. This loyalty not only enhances their affinity for the brand but also leads to more frequent visits and increased customer retention.
Optimising the First-Party Ordering Experience
Recognising the unique traits of first-party customers, it becomes crucial for brands to prioritise and enhance the first-party ordering experience. Here are a few key considerations:
Streamline Ordering Process: Ensure that your first-party ordering system is user-friendly, intuitive, and mobile-responsive. Simplify the steps involved in placing an order and provide clear options for customisation, special instructions, and dietary preferences.
Efficient Order Fulfilment: Timely and accurate order fulfillment is vital to customer satisfaction. Invest in robust order management systems, optimise kitchen operations, and maintain clear communication channels with customers to provide real-time updates on order status.
Personalisation and Customisation: Leverage customer data to personalise the ordering experience. Recommend favourite items based on past orders, offer personalised promotions, and provide tailored recommendations to create a sense of individualised attention and care.
Seamless Integration with Loyalty Programs: Integrate your first-party ordering system with your loyalty program to provide incentives and rewards for customer engagement. Offer exclusive discounts, rewards, and early access to new menu items to encourage repeat orders and strengthen loyalty.
Proactive Customer Support: Establish channels for prompt and effective customer support. Offer multiple contact options, such as live chat, email, and phone, to address any concerns or inquiries promptly. Resolving issues efficiently can turn a potentially negative experience into a positive one, fostering customer loyalty.
While third-party ordering services continue to be an important part of the customer acquisition strategy, brands must recognise the unique advantages offered by their first-party ordering channels. First-party customers tend to order higher-value items, tip generously, and demonstrate stronger brand loyalty. By prioritising and enhancing the first-party ordering experience, brands can cultivate a base of loyal customers who not only contribute to increased revenue but also serve as ambassadors for the brand. Investing in the infrastructure and processes necessary to provide a seamless and exceptional first-party ordering experience is an investment that will pay off in the long run, strengthening customer relationships and driving sustained growth.
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
In today’s competitive restaurant industry, effective marketing strategies are crucial for attracting and retaining customers. One powerful approach that can significantly enhance your restaurant marketing plan is deep segmentation. By diving deeper into your target market and understanding their unique preferences and behaviours, you can craft tailored messages and experiences that resonate with your customers on a personal level.
Understanding Deep Segmentation
Deep segmentation goes beyond basic demographic information and delves into psychographic, behavioural, and contextual factors. It involves dividing your target market into distinct groups based on their preferences, interests, motivations, and values. By gaining a deeper understanding of your customers’ needs and desires, you can create highly personalised marketing campaigns that speak directly to their individual preferences, ultimately driving engagement, loyalty, and repeat business.
Collecting Data
To implement deep segmentation effectively, you must first collect relevant data about your customers. Utilise various channels, such as online surveys, social media analytics, and customer feedback, to gather information about their demographics, preferences, purchasing patterns, and dining habits. This data will serve as the foundation for creating distinct customer profiles and segments.
Creating Customer Personas
Once you have collected sufficient data, it’s time to create customer personas. These personas represent different segments within your target market and embody the characteristics, preferences, and behaviours of each group. Each persona should include demographic information, motivations, interests, challenges, and preferred dining experiences. By visualising these personas, you can better understand and empathise with your customers, enabling you to tailor your marketing efforts accordingly.
Personalised Marketing Campaigns
With well-defined customer personas, you can now develop highly targeted and personalised marketing campaigns. Craft messages and offers that align with each segment’s unique preferences and motivations. Leverage email marketing, social media advertising, and other digital channels to deliver tailored content to the right audience at the right time. Implement dynamic website content and personalised promotions to enhance the customer experience further. By addressing their specific needs and desires, you will foster a deeper connection with your customers and increase the likelihood of conversions.
Tracking and Adjusting
To ensure the success of your deep segmentation efforts, it’s crucial to track and analyse the performance of your marketing campaigns. Use analytics tools to monitor customer engagement, conversion rates, and revenue generated from each segment. Identify what resonates with each group and optimise your campaigns accordingly. Continuously refine your customer personas and adapt your strategies based on evolving customer preferences and market trends.
Deep segmentation offers a powerful toolset for marketers in the restaurant industry to connect with their target audience on a deeper, more personal level. By understanding the unique preferences and behaviours of different customer segments, you can create highly targeted and personalised marketing campaigns that drive engagement, loyalty, and ultimately, business growth. Embrace deep segmentation and unlock the full potential of your restaurant marketing plan.
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
Want to learn how to create a business that builds upon itself year after year after year? Come along and listen to our panel of experts and meet your peers as we reveal how to unleash hospitality’s industry’s secret weapon, loyalty, hosted by Paytronix.
Join us to network with industry peers and enjoy brunch provided by Brewdog, in their iconic new site in Waterloo station,
The cost of living increased sharply across the UK during 2021 and 2022. The annual rate of inflation reached 11.1% in October 2022, a 41-year high, before easing in subsequent months. It was 8.7% in April 2023, its tough going out there, add the current headwinds to the challenge of customer retention, with so much choice, how do we keep our guests coming back for more?
As a hospitality operator you are tasked with retaining your present customers and acquiring new ones. Your loyalty programme needs to make it easy for you to enrol more guests, capture more data and trigger more repeat business, so come along on 29th June to Brewdog in Waterloo, grab a late breakfast, reconnect with industry friends & make some new connections.
Stay tuned for our speaker announcements in the coming weeks.
Our panel are going to discuss,
AI in Hospitality, what difference it can make and how far can it go in transforming the way we market to our customers
What emerging technologies or trends will influence the future of digital loyalty programs in the hospitality industry, and how the industry is adapting to these changes.
What role data will play in shaping and optimising digital loyalty programs, and how can businesses leverage customer data to create more personalised experiences.
Sharing best practice, specific examples of how digital loyalty programmes can positively impact customer retention and increased revenue.
The potential challenges or barriers in adopting and implementing a digital loyalty program, both from a technical and organisational perspective
And much more…..
Your regular customers create 80% of your future revenue. Grab your seat, and secure your future revenue for 2023 and beyond.
Further resources:
How AI Enhances Online Ordering & Loyalty with Better Personalised Upsells
Choosing the loyalty programme that’s right for your restaurant – your complete guide
How well do you really know your customers?
I am sure you know when you’re regulars pop in, who always orders that dish that no one else does, but how much do you really know about your customers, when they spend, how they spend and how they interact with your brand?
In the highly competitive restaurant industry, understanding your customers is paramount to success. Deep segmentation, a strategy that involves categorising customers into specific groups based on various factors, can provide valuable insights for restaurant owners.
By implementing deep segmentation techniques, restaurant owners can gain a deeper understanding of their customers’ preferences, behaviours, and needs.
In this blog post, we will explore how restaurant owners can utilise deep segmentation to truly get to know their customers and enhance their overall dining experience.
Collecting and Analysing Customer Data
The first step in utilising deep segmentation is to collect and analyse customer data. Restaurants can start by implementing a customer relationship management (CRM) system or loyalty program to capture valuable information such as dining preferences, frequency of visits, and order history. By gathering this data, restaurant owners can gain insights into customer behaviour patterns, identify trends, and discover unique preferences across different customer segments. This information serves as the foundation for effective deep segmentation and helps tailor experiences to specific groups.
Demographic and Psychographic Segmentation
Demographic and psychographic segmentation are two key components of deep segmentation for restaurant owners. Demographic segmentation involves categorising customers based on characteristics such as age, gender, income level, and location. Psychographic segmentation focuses on understanding customers’ motivations, lifestyle choices, and preferences. By analysing these aspects, restaurant owners can develop targeted marketing campaigns, create menu items that cater to specific dietary preferences or cultural tastes, and offer promotions that align with customers’ interests. This level of personalisation enhances customer satisfaction and builds stronger connections with patrons.
Behaviour-Based Segmentation
Another vital aspect of deep segmentation for restaurant owners is behaviour-based segmentation. This approach involves analysing customers’ dining behaviours, including visit frequency, average spending, preferred dining times, and menu preferences. By understanding these behaviours, restaurants can tailor marketing efforts, loyalty programs, and promotional offers. For instance, if a segment of customers tends to dine during lunchtime, restaurants can create lunch specials or discounts specifically for that group. Behaviour-based segmentation also helps identify customer preferences for specific cuisines or ingredients, enabling restaurants to curate their menus accordingly.
Personalised Marketing and Engagement
Deep segmentation empowers restaurant owners to create personalised marketing and engagement strategies. By understanding customer preferences and behaviours, restaurants can target specific customer segments with personalised promotions, offers, and recommendations. This level of customisation makes customers feel valued and appreciated, ultimately enhancing their overall dining experience. Moreover, personalised engagement through channels like email marketing, social media, or loyalty programs allows restaurants to maintain regular communication with customers, keeping them informed about special events, new menu items, or exclusive promotions.
Continuous Feedback and Iteration
Deep segmentation is an iterative process that requires ongoing analysis and refinement. Restaurants should encourage customer feedback through surveys, online reviews, or feedback cards to gain insights into their dining experience. This feedback provides valuable information that can be used to refine deep segmentation strategies and improve the overall customer experience. By listening to customer input and continuously adapting offerings based on their preferences, restaurant owners can foster a sense of loyalty and ensure customers feel heard and appreciated.
Deep segmentation offers restaurant owners a powerful tool to truly get to know their customers. By collecting and analysing customer data, implementing demographic, psychographic, and behaviour-based segmentation, and personalising marketing and engagement strategies, restaurants can create tailored dining experiences that meet the unique needs of their customers, ultimately fostering loyalty and long-term success in the competitive restaurant industry.
Creating Raving fans through loyalty podcast
Recently Charles Grey, CRO from Paytronix, sat down to discuss his thoughts on loyalty & creating raving fans in the hospitality industry with our partners podcast, Tech on Toast
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
In today’s digital age, online ordering has become increasingly popular among consumers. As businesses strive to provide a seamless and personalised experience, artificial intelligence (AI) has emerged as a valuable tool. By leveraging AI algorithms, businesses can enhance the upselling process and offer better personalised recommendations to their customers. Let’s explore how AI is transforming the online ordering landscape.
Understanding Customer Preferences
AI algorithms analyse various data points, including customer purchase history, browsing behaviour, demographics, and preferences. By creating detailed customer profiles, businesses gain valuable insights into individual preferences and habits. This understanding forms the foundation for delivering personalised upsell suggestions.
AI-Powered Recommendations
Recommendation systems powered by AI utilise customer profiles to generate personalised upsell recommendations. These systems employ machine learning techniques such as collaborative filtering, content-based filtering, or hybrid approaches. By considering factors like previous purchases, customer preferences, and item popularity, these algorithms can suggest products or services that are most likely to resonate with each customer.
Real-Time Analysis for Immediate Upsells
AI algorithms enable real-time analysis of customer behaviour during the online ordering process. By analysing data such as items added to the cart, searches, and past purchases, AI systems can provide immediate and relevant upsell recommendations. For instance, if a customer is ordering a pizza, the AI system may suggest adding garlic bread or a soda based on their current session.
Levraging Predicitve Analytics
AI utilises predictive analytics to anticipate customer needs and preferences. By analysing patterns and historical data, algorithms identify common purchase combinations or recommend complementary items that other customers with similar profiles have frequently chosen. This data-driven approach increases the likelihood of upsells being relevant and appealing to customers.
Harnessing Natural Language Processing
AI leverages natural language processing (NLP) techniques to extract insights from customer feedback, reviews, and comments. By analysing this textual data, businesses can gain valuable information about specific customer preferences. This enables AI algorithms to make more accurate and tailored upsell recommendations, catering to individual tastes and preferences.
A/B Testing and Optimisation
AI facilitates A/B testing, allowing businesses to evaluate different upsell strategies and analyse outcomes. By continuously optimising the recommendation algorithms based on customer feedback and behaviour, AI systems improve the relevance and effectiveness of upsell suggestions over time. This iterative process ensures that the upselling strategy evolves and aligns with customer preferences.
Are you using Ai to drive your upselling?
Artificial intelligence is revolutionising the way businesses approach online ordering, loyalty and upselling. By harnessing AI algorithms, businesses can create a personalised and engaging experience for their customers.
The ability to understand individual preferences, offer real-time recommendations, and leverage predictive analytics empowers businesses to increase customer satisfaction, boost average order values, and drive revenue growth. As the online ordering landscape continues to evolve, integrating AI into the upselling process will become increasingly vital for businesses seeking to stay ahead. By embracing AI-powered recommendation systems, businesses can deliver tailored upsell suggestions that enhance the overall customer experience.
The combination of AI’s data analysis capabilities, real-time insights, and optimisation techniques allows for continuous improvement and customer-centric upselling strategies.
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
Loyalty programmes make sense in so many ways for your restaurant – but because your business is highly individual, when it comes to choosing a programme, it’s never one size fits all.
3 benefits of restaurant loyalty programmes
- They deliver financial returns by encouraging guests to make return visits and spend more
- They capture customer data that helps you target marketing and offers better
- Customer engagement increases because your guests feel you know and care about them.
A huge range of loyalty programmes is available, and it can be tricky to choose. So keep these factors in mind when making a decision regarding loyalty program management:
• Which programme will sit well with your clientele and compel them?
• What’s the best programme to align with the concept of your restaurant, and the brand you have built?
• Which programme will be practical for your staff to implement?
• Which one will help you achieve the financial goals you have for your business?
Your loyalty programme should work hand in hand with your restaurant epos system, so good integration is a key factor. The restaurant management system combined with great customer engagement helps you provide the excellent customer experience that brings guests back again and again.
So where do you start? Download our new guide and discover:
• What types of loyalty programmes are available
• How ‘layered’ loyalty programmes could help you
• How to create your own loyalty programme – a 5-step guide
Fill in the scorecard – and discover which type of loyalty programme is best for you
In our new guide, you can take the first steps to engaging better with your customers – fill in a scorecard using programme descriptions and evaluation criteria to start building your own customised loyalty programme.
Or you can use our programme evaluation scorecard to rate loyalty programmes and find the best fit with your restaurants.
Check out the guide today – it’s the easy way to begin your journey to better customer engagement and financial returns.
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
When you use loyalty data to create targeted promotions, it gives your restaurant the power to drive guest visits at specific times, increase spending, and boost the number of people joining the programme.
But are you using the right promotions at the right time?
Our new guide, compiled with information from NFS’ world-leading customer engagement partner Paytronix, reveals how to work out the returns you are likely to get from different loyalty promotions.
They include:
• Birthday benefits
• Double points
• Win-back campaigns
• Instant win
• Visit challenges
• Limited time offers and menu promotions
And from double points to instant wins and everything in between, the metrics will show you whether your promotions could work harder to bring benefits to your business.
In our guide to getting real results for loyalty programmes, you’ll discover:
• What promotions are best for different marketing challenges
• Which promotions offers are most likely to be redeemed
• Which produce the best results in spending uplift
• How to work out ‘net of reward’ – and why that’s important
Your loyalty programme will work hand in hand with your restaurant epos system to strengthen customer engagement because the data they capture gives you an insight into their behaviours. It all adds up to better customer service and that personal touch most guest value.
5 key tips for bolstering promotion results
Follow these tips to give your promotions the greatest chance of success:
- Plan ahead – put them on your marketing calendar
- Create guest segments – bear in mind the behaviour you want your promotion to affect and group customers together
- Develop relevant offers and messages – that will suit the segments
- Schedule messages – so they drop at the best time to gain attention
- Use the right channel – could be email, website, SMS, social media.
Get the free guide – it’s packed with tips and useful information
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
A key aspect of designing and managing your loyalty programme is setting its reward values – determining how much to give back to your loyal customers in recognition of their valuable behaviours.
This takes careful consideration. Giving too little does not motivate them to change their behaviours, but giving too much might chip away at your profits.
So how generous should you be?
Many customers ask is there’s an ideal setting for a loyalty programme rewards structure. You want guests to be happy with the benefits, visit more often and stay with the programme – but you don’t want to affect the programme’s return by seeing costs rise too much.
Your loyalty programme works hand in hand with your restaurant epos system to help you offer the best in customer service and engagement. By understanding – and enhancing – a guest’s behaviours, you can create the kind of experience they will cherish while building your revenues and reputation.
In our new guide, compiled with information from our world-leading customer experience partners Paytronix, we reveal how to map out the profitable reward zone for your business.
We’ll help you understand these 5 important reward elements:
- How guests value the rewards you offer, and why this matters
- The relationships between reward level and visits, spend and membership
- How this affects the programme’s profitability
- Where you should set your reward structure, given your variable food and labour costs
- How to use loyalty programme optimisation curves to your restaurant’s benefit
Conclusion – reward levels that make sense
Setting rewards? It’s not an exact science. But understanding the many factors that impact your programme’s return will help you set reward levels that make sense.
It’s important to understand the range of optimisation that is available to you. Once you know that, you can set your core programme reward at a level that allows you to enrich it from time to time, maintaining a high level of member involvement and engagement.
Discover how to optimise your loyalty programme return to benefit you and your customers. Download the free guide now.
Further resources:
11 messages you should use to get the best customer engagement
The 4 signs it’s time to revamp your loyalty programme:
Creating a good marketing strategy is essential for making your restaurant stand out from the rest – and when you send your guests the right message at the right time, it genuinely resonates.
When seeking to influence your loyalty programme members to visit your restaurant and spend more, you need to keep three things in mind when preparing your messaging:
- Format
- Relevance
- Timeliness.
Format
By using the correct approach to convey your information, you’ll maximise the impact of your message. These can include email, SMS and push messaging, and geofencing.
Relevance
You need to be sure your messaging is appropriate to your customer. For instance, vegans won’t want your latest steak deal and might even be offended to receive the offer.
This is where your knowledge of your customers, gained through your integrated customer engagement and restaurant management systems, can be of invaluable help.
Timeliness
Who wants a birthday offer when it’s not their birthday? Again, the data you capture and analyse with your systems makes sure you get it right and maximise uptake of your offer.
So what kind of messages should you be sending out – and which formats are best for which of them?
With our customer experience and engagement partners Paytronix, we’ve compiled a guide to the 11 best messages for successful engagement.
The welcome message
A great chance to give your guests info about the benefits of joining your great customer loyalty programme.
Registration reward reminder
How to get the timing right so you get the maximum uptake.
Bounce back
Guests get really loyal at around their 4th visit, so you need to keep new members on track.
Notification of expiring registration reward
how to make sure they don’t miss out, and build continuing engagement.
Post visit thank-you
Really builds the relationship after you visit, and you can add a survey to gather feedback.
Reward notification
Your members love to see their visits have earned them a reward.
Retargeted reward notification
Reminds guests about an available award when they are near a suitable location.
Almost there
Motivate guests to increase visits and earn that reward.
Reward expiration reminder
A well-timed reminder can prompt a visit to one of your locations.
We miss you
This can bring lapsed customers back, if you it in the right way at the right time.
Happy birthday
Not all birthday offers are the same; they should be flexible, and offer the best rewards to the most loyal customers.
Discover more – download our easy-to-use free guide and find out the best way to use each of these key messages to reach your customers.
Further resources: 4 signs that show it’s time to revamp your restaurant loyalty programme
