STUDY: 71% of Millennials Are Willing to Share Personal Info
New research reveals how restaurant loyalty and rewards programs impact consumer behaviors. The survey, conducted by HungerRush, indicates that rewards programs increase the frequency of visits by members, improve customer loyalty, and provide restaurant owners with the opportunity to gather valuable data to personalize and tailor future offers.
Amid ongoing economic constraints, consumers are tightening the purse strings, and this is impacting how and when they dine out.
According to this survey, 55% of consumers visit establishments where they earn rewards at least two times per month and once signed up, 51% say they wouldn’t stop going to the restaurant if the program was devalued or changed. Moreover, programs encourage positive word of mouth from loyal customers, 47% of consumers say they encourage friends and family to sign up for programs they feel offer the best benefits.
“HungerRush’s loyalty offering allows me to refocus time on the operations side of my business, improve and personalize consumer experiences without skipping a beat,” said Jeremy Galvin, President of Master Pizza Ohio. “It is one less thing for me to think about.”
Loyalty programs are also an invaluable way for businesses to gather insightful customer data and when used correctly, consumers are amenable to share this information. The survey showed that 61% of consumers are comfortable giving out their information in exchange for relevant discounts and offerings, tailored more to their likes and preferences. Furthermore, 71% of millennials and 63% of Gen Z consumers are willing to share their personal information with restaurants in exchange for more frequent or personalized offers, compared to 50% of Boomers.
- 71% of restaurants say using data to understand guest preferences and behavior is a top business driver impacting POS upgrade decisions, according to HT’s 2023 POS Software Trends Report.
This is interesting when overlaid with other research. In The RushReport: The 2023 Restaurant Consumer Experience Report, HungerRush found that 50% of Americans are dining out less frequently due to inflation.
By capturing critical order data as part of a loyalty program, restaurants can in turn directly market to these customers with personalized promotions via email and text message. Text promotions can be responded to directly in our text ordering channel. This linkage and convenience is proven to drive additional loyalty and results in a significant lift in repeat order volumes.
"...The HungerRush solution has consistently helped us achieve a 20% redemption rate while improving our bottom line by 10-20%," id Victor Martinez, Chief Operating Officer of PieZoni’s. "We reach 70,000 consumers with each email we send out. You can’t get that type of return on investment anywhere else.”
The survey was commissioned by HungerRush and conducted by Dynata, a first-party data company. The survey was conducted in March 2023 of 1,000 U.S. consumers 18 years and older to understand their preferences around restaurant loyalty and rewards programs.