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This question arose when we took on the task of increasing Sunday visits to our client’s restaurants earlier this year.
The Situation
Sunday dining was down overall, but there was a slight uptick later in the year, likely driven by a combination of football season and holiday gatherings. Our client wanted to see that trend continue in January and sought incentives to motivate loyalty program members to visit on Sundays after the holidays.
Plan & Execution For Increasing Sunday Visits
We segmented the loyalty program audience into four groups:
- Only Sunday (100% of visits were on Sunday)
- Mostly Sunday (>50% of visits were on Sunday)
- Sometimes Sunday (<50% of visits were on Sunday)
- Never Sunday (0% of visits were on Sunday)
Each segment received an offer based on their most frequent behaviors. For example, the “Only Sundays” group, who were more likely to order online, received a discount for online ordering and pickup. The “Never Sundays” group, who were more likely to order dessert, received a free dessert offer. The “Mostly Sundays” and “Sometimes Sundays” segments received loyalty point incentives. All incentives were valid only on Sundays.
We sent weekly email communications throughout January featuring the post-holiday incentives and engaging content to encourage Sunday visits.
The Results
The campaign successfully influenced the behavior of the “Never Sundays” segment. This group visited 35% more than the control group and generated 28% more in net sales. We saw similar results for the “Sometimes Sundays” segment. However, the incentive and/or messaging were not effective for the “Mostly Sundays” or “Only Sundays” audiences. They did not visit or spend more than the control group.
Learnings & Questions
This experiment was a valuable first step in testing weekday promotions with post-holiday incentives. While we learned a lot, it also generated questions for future tests:
- The free dessert incentive effectively changed the behavior of loyalty members who never visited on Sundays. Could the “Sometimes Sundays” segment have performed even better with this offer?
- The online order incentive did not motivate the “Only Sundays” group to visit more frequently. What would entice them to come in again on Sundays? Would a free dessert be more effective?
Future Tests For Increasing Sunday Visits
The initial campaign’s audience sizes prevented us from offering every incentive to all groups. Future tests may involve a multi-variate approach, offering different incentives to each segment to understand which post-holiday promotions are most effective. We will also investigate additional member attributes to glean further insights into their dining habits.
Learn more about our experience with CRM & Loyalty and Data. Or Contact Us to find out how we can work with you to improve your brand or business.
