Video

The Real Deal: Why restaurants need to think beyond LTOs

Many restaurant promotions focus on a specific limited time offer (LTO) to get people to dine with them more often. Those promotions are great, but they assume every individual in a brand's system wants or needs the same message to get them to come in. 

The reality is that every person is different. And everyone needs a different personalized message that actually resonates with them as opposed to a one-size-fits-all offer. 

To help demonstrate why this matters, our senior director of product management, Lori Kimpton, dissects an analysis we did for a national casual restaurant chain to understand where the greatest opportunity for their marketing lies.


After watching the video, see how we drove 2X engagement with unique visitors for Cracker Barrel. 


Video transcript:

(Lori Kimpton) Many restaurant promotions focus on very specific, limited time offers to get people to dine with them more often. And those promotions are great, but they really assume that every individual wants or needs the same message to get them to come in.

In reality, every person is different and requires very personalized messages, as opposed to a one-size-fits-all offer.

To demonstrate why this matters, let's take a look at a recent analysis we did for a national restaurant chain. In the analysis, we matched their first-party data to our 200 million customer profiles to show how their customers spend at their restaurant and also in the full casual dining restaurant category.

Here we see that 24% of their most loyal customers often spend at that brand, but we also see that 33% of heavy category spenders only sometimes spend with the brand, meaning that they're spending with other competitor brands.

When we look at the average annual spend for this brand against customer spend in the category, we see that medium category spenders spend $156 at the restaurant annually. If people in this category visited just one more time, they would move to the high category. This translates to a $32 million revenue opportunity.

So, there are really two key questions that restaurants are asking here: How can they get the heavy spenders to come back to their restaurant over others, and how do they get one more trip from loyal, mid-range AOV customers?

You can and you should treat these groups differently. The heavy-category spenders need to know why they should choose your restaurant over others. Maybe it's location, special dietary restrictions, the time of day they're considering where to go. While the loyal guests need a reason just to come more often.

The more that you can treat a guest like you know them, because you do, the more that they'll want to interact with your brand and dine with you again and again.