What can you achieve with an app for your restaurant...and what are the business metrics you should use to judge the app's performance?

1. goals10
you can actually achieve
a restaurantwith
app
Director of Enterprise Partnerships
Jim Steinberg

2. All insights in this presentation are
based on our experience from...
App users
8M
Restaurant app
projects
in 8 countries400

3. What is the most challenging
task for restaurants today?
Operations
Location
Service
Food
?

4. How to build customer
relationships that are truly
rewarding both for the brand
and for the customer?
CustomerRestaurant brand

5. Getting
feedback
Analyzing
behavior
Personalizing offers
Communicating
at the right place & time
Segmenting
customers
Delivering emotional experience Gamifying loyalty
The field of customer relationships

6. Truly rewarding customer relationships → lots of $$$
THIS is where true restaurant
success is achieved
The field of customer relationships

7. How do we build truly rewarding
customer relationships?
Old communication
tools
of smartphone owners use
their device for shopping
activities
of smartphone users
actually WANT loyalty
cards on their devices
Time an average
American spends using
a smartphone every day~3h
90%
73%
The field of customer relationships

8. Old communication
tools
Mobile apps!
How do we build truly rewarding
customer relationships?
The field of customer relationships

9. This is what 90% of restaurant
apps actually are...
■ Not used by 95%
of customers
■ No engagement
■ Doesn’t bring value
for business

10. ✓ Actually used by customers
✓ Leverages personalized
emotional communication
✓ Achieves the following
10 business goal
benchmarks
But we are seeing more and
more apps like this...

11. Mobile apps that don’t
bring value for business
Old communication
tools
Mobile apps that
actually work
What 10 business goals could
be achieved with a mobile app
that actually works?
The field of customer relationships

12. Benchmark conditions
One location ~ 3 months after app launch
1st
month
2nd
month
3rd
month
Mobile app
launched

13. GOAL#
BENCHMARK #
Build customer database and analyze
customer behavior
for 1 location after
3 months
BENCHMARK #1
1
>1,500 real
customers
using app
Open the app
sometimes, but haven’t
used mobile loyalty
card yet
Don’t use the app
or deleted it
All app installations
Use mobile loyalty
card regularly
Used mobile loyalty
card 1-2 times
Real customers
using app

14. GOAL#
BENCHMARK #
May
2015
Source: Data from Hooters franchisee case study in Europe.
Dec.
2014
Jan.
2015
Feb.
2015
Mar.
2015
Apr.
2015
230
560
520
460
400 380
Monthly growth of new users who transact
restaurant
signage81%
referrals
19%
Build customer database and analyze
customer behavior
>1,500 real
customers
using app
for 1 location after
3 months
BENCHMARK #1
1

15. GOAL#
BENCHMARK #
Engage customers in a digital channel
2
30% loyalty
program app
penetration
for 1 location after
3 months
2
Source: Data from Pizza Hut franchisee case study in Europe
Loyalty program participation rate
(% of checks):
penetration
during the first
week
20%
penetration
after two
months
33%
Checks with
loyalty card usage
Checks without
loyalty card usage
0
1k
2k
3k

16. GOAL#
BENCHMARK #
Increase average check
3
30%
higher check
for app users
3
for 1 location after
3 months
Visit our store on the 2nd fllor and get a
free ice-cream!
KFC

17. GOAL#
BENCHMARK #
Increase average check
average customer
loyalty program user
$30 $43
3
3
Source: Data from Hooters and Pizza Hut franchisee case study in Europe
average customer
loyalty program user
$11 $13
30%
higher check
for app users
for 1 location after
3 months

18. GOAL#
BENCHMARK #
Win-back lost customers
4
4
for 1 location after
3 months
14% Win-back
campaign
conversion for
lost customers
Source: Data from KFC franchisee case study in Europe.
Customers
from June
May June July
Customers
who visited
in May the
1st time
Customers
from May
New
customers
In June
Customers
from May
Lost May
customers,
who received
a win-back
personal offer
in July
Win-back
campaign
conversion
Win-back campaign
New
customers
in July

19. GOAL#
BENCHMARK #
34%open rate
Free Sanders
i REDEEM
14%conversion
4
14% Win-back
campaign
conversion for
lost customers
4
Campaign with special offer
for lost customers
for 1 location after
3 months
Source: Data from KFC franchisee case study in Europe.
Win-back lost customers

20. GOAL#
BENCHMARK #
Encourage impulse visits
with location-based marketing
5
5
for 1 location after
3 months
22% proximity
marketing
conversion

21. GOAL#
BENCHMARK #
Encourage impulse visits
with location-based marketing
5
5
22%conversion
+35%additional sales
Location-based campaign:
a complimentary Ice Cream
Visit our store on the 2nd fllor
and get a free ice-cream!
KFC
We’re on the 4th
floor of the mall!
Come and receive
your gift!
KFC now
22% proximity
marketing
conversion
for 1 location after
3 months
Source: Data from KFC franchisee case study in Europe.

22. GOAL#
BENCHMARK #
Increase sales from customers
celebrating their birthday
6
6
24% birthday
greetings
conversion
Where?!?

23. GOAL#
BENCHMARK #
Increase sales from customers
celebrating their birthday
6
6
24%conversion
x2Average check
two times higher
Personalized offer: a complementary
medium pizza to a customer for the week
before and the week after birthday
0
Happy birthday!
Birthday coming up? Celebrate in a Pizza
Hut restaurant! A complementary medium
pizza with every birthday dinner!
REDEEM
24% birthday
greetings
conversion
Source: Data from Pizza Hut franchisee case study in Europe

24. GOAL#
BENCHMARK # 7
for 1 location after
3 months
14% users
recommend app
on social media
Get new guests
by referral recommendations
Of all guests
recommended
the app to their
friends
14%
App installs from recommendations
for 1 location after 3 months
3 app installs
from each
recommendation
>900
7
Source: Data from BURGER KING franchisee case study in Europe.

25. GOAL#
BENCHMARK #
Get additional revenue from digital ordering
Mobile app sales as a percentage of
online orders: US: 25% UK: 60%
8
8
for 1 location after
3 months
Source, UK: http://investors.dominos.co.uk/system/files/uploads/financialdocs/preliminary-results-2015-presentation.pdf, page 21. Source, US: https://www.detroitlabs.com/dominos,
http://www.business2community.com/mobile-apps/data-confirms-dominos-winning-mobile-customer-experience-01221079#CKBLaZqoVbyYrfDC.97
25%+ digital
orders coming
from your
own app

26. GOAL#
BENCHMARK #
I had lunch at your place
today. The Caesar salad
with grated cheese nearly
broke my tooth
9
9
! Negative
review
on Yelp!
! Your
website
! Complaint in
social media
! Complain to
friends
Your own
mobile app
for 1 location after
3 months
Source: Data from Hooters franchisee case study in Europe
Provide your guests with a feedback channel
that actually works
>10 detailed
feedback
reviews per day

27. GOAL#
BENCHMARK #
+20%+19%+30%+6% +23%+14%
Jul ‘15 Aug’15 Sep ‘15 Oct’15 Nov ‘15 Dec ‘15 Jan’16 Feb ‘16 Mar’16 Apr ‘16
LoyaltyPlant
launched
Grow sales and profits
10
10
6-20%
same-store
incremental
revenue growth
Revenue for a restaurant
without mobile app
Revenue for a restaurant with mobile app
before and after it has launchedfor 1 location after
3 months
Source: Data from KFC franchisee case study in Europe.

28. Why 90% of restaurant apps
aren’t achieving these results?
1. Not having your OWN branded app
2. Static, non-personalized interface
3. Ineffective app communication strategy
4. Bad loyalty mechanics
5. Developing your software in-house

29. Are you achieving these results
with your existing app?
1,500+
real customers
using app
30%
loyalty program app
penetration
30%
higher check for app
users
14%
win back campaign
conversion for lost
customers
22%
proximity marketing
conversion
24%
birthday greetings
conversion
14%
users recommend
app on social media
25%+
digital orders
coming from your
own app
10+
detailed feedback
reviews per day
6–20%
same-store
incremental revenue
growth
for 1 location, after 3 months

30. Empowering restaurant innovators to build
customer relationships that are truly rewarding
both for the brand and for the customer.
CustomerRestaurant brand

31. Are you achieving these results
with your existing app?
1,500+
real customers
using app
30%
loyalty program app
penetration
30%
higher check for app
users
14%
win back campaign
conversion for lost
customers
22%
proximity marketing
conversion
24%
birthday greetings
conversion
14%
users recommend
app on social media
60%
digital orders
coming from your
own app
10+
detailed feedback
reviews per day
6–20%
same-store
incremental revenue
growth
for 1 location, after 3 months

32. Mobile apps that actually work
www.loyaltyplant.com