Mobile apps increase same store revenue through engagement and can help turn a restaurant into a well-oiled profit machine, said LoyaltyPlant. One of KFC’s most innovative franchisees in Europe recently got several international awards (i.e. International Loyalty360 Platinum International Degree award and the Gold for Return on Customer Experience) for achieving astounding results with its customer loyalty program and double-digit growth (12%) of the same store revenue with the help of mobile technology.
As restaurant marketing leaders are trying to launch mobile pilot projects and find the recipe for success, KFC, operated by AmRest in Europe, found the answer. KFC set out to build new personalized communication channel to drive customer frequency by building true loyalty instead of functional loyalty. The specific goal was to increase foot traffic and to take advantage of a dynamic CRM system, loyalty program and a leading-edge mobile app.
To achieve this goal, KFC focused on customer experience in their mobile app generating impressive results in just a few months:
- 25 percent of customers used the app during their visit driving engagement through a combination of personalized communication and proximity-based rewards;
- The customer win back campaign with a giveaway of a free and premium Colonel Sanders sandwich targeting lost customers had a high open rate of 34% and built revenue with a 14% “win back” conversion rate;
- The restaurant increased visit frequency by performing other simple steps including automated birthday greetings.
According to LoyaltyPlant, KFC's success proves that restaurants seeking improved customer loyalty and increased same store revenue should take a closer look at mobile. A recent report by the Google Shopper Council found that 90% of smartphone owners use their device for pre-shopping and shopping activities while 73% actually want a loyalty card on their device. This means that mobile is a preferred method of building loyalty and engaging with the brands when it comes to restaurant customers. It’s also crucial to reach mobile users at key moments when they are deciding on a place to eat. The right mobile app will work to get more foot traffic in specific locations, grow the CRM database, make ordering for customers more efficient, and provide staff quality control.