Omnichannel Loyalty: The Next Big Loyalty Program

Omnichannel loyalty is a new approach to customer loyalty that integrates all channels and touchpoints to create a seamless, personalised experience for customers. It involves collecting data from various sources such as social media, mobile apps, websites, and in-store interactions to personalise customer experiences across all channels. The goal is to build long-lasting relationships with customers and increase customer lifetime value.

Many QSR brands in Australia are already implementing these programs with great success. Global brands such as McDonald's and Starbucks have their own loyalty programs that are tightly integrated across all digital and physical interactions with members. Meanwhile, local QSR brands such as Nando's, Boost Juice, and Bakers Delight have integrated their loyalty programs not only at POS but also into mobile apps and online ordering with 3rd party delivery partners.

With the maturity of the Australian loyalty market, QSR businesses need to provide relevant value to customers, an integrated omnichannel system, and proper management to remain competitive. How can QSR brands adopt an omnichannel strategy within their loyalty program or at least consider how utilising various channels and touchpoints will improve the experience for their customers in APAC? 

Benefits of Omnichannel Loyalty for QSR Brands

Adopting an omnichannel loyalty program can bring several benefits to QSR brands. One of the most significant advantages of such programs is increased customer engagement. Omnichannel loyalty programs provide customers with a personalised experience, leading to higher engagement rates. Customers are more likely to participate in a program that offers unique and relevant rewards.

Another benefit of omnichannel loyalty programs for QSR brands is the increased customer lifetime value. Omnichannel loyalty programs help brands build strong relationships with their customers, leading to increased customer lifetime value. Customers who feel valued and heard are more likely to continue doing business with a brand.

In addition, omnichannel loyalty programs can help QSR brands improve their brand advocacy. Omnichannel loyalty programs can help brands create brand advocates by providing customers with unique and personalised experiences. Brand advocates are more likely to recommend a brand to others, leading to increased brand awareness and customer acquisition.

A Quick Guide for QSRs on Measuring Loyalty Program Success

Measuring the success of an omnichannel loyalty program is crucial for any QSR business. There are several metrics that can be used to determine the program's effectiveness. Firstly, acquisition rate should be considered, as this measures how many customers are signing up for the program and finding value in it. The redemption rate is also an important metric, as it shows how often customers are using their rewards and finding value in the program. The time to first redemption should also be considered, as if it's too long, customers may lose interest and not participate in the program.

Other important metrics to consider include Customer Lifetime Value, Basket Size (especially member vs. non-member basket sizes), and Churn rate or Active rate. These metrics can give insights into how engaged customers are with the program and how it's impacting their purchasing behaviour.

Lastly, to measure emotional loyalty, businesses can use metrics like Net Promoter Score (NPS), Customer Surveys, and Feedback results. These metrics can help businesses determine how connected customers feel to the program and how likely they are to recommend it to others.

QSR’s Key Challenges with Traditional Loyalty Programs

As the QSR industry continues to shift towards online channels, loyalty programs have become an essential component of many restaurants' digital marketing strategies. However, traditional loyalty programs may not be as effective as they once were, as customers demand more personalised experiences and rewards.

Traditional loyalty programs often fail to provide customers with relevant value, leading to low engagement rates. Customers may not feel motivated to participate in a program that does not offer unique or targeted rewards. To overcome this challenge, QSR brands can use data to personalise rewards and create unique experiences for their customers.

Moreover, another challenge that QSR brands face with traditional loyalty programs is the lack of an integrated omnichannel system. Traditional loyalty programs are often disconnected from other engagement systems, resulting in an inconsistent experience across channels. This can be frustrating for customers and can lead to lower engagement rates. To overcome this challenge, QSR brands can integrate all channels and touchpoints to create a seamless, personalised experience for their customers.

Lastly, traditional loyalty programs can be challenging to manage, especially when dealing with a large customer base. Brands may struggle with poor account management, unresponsive support teams, and minimal domain experience. To overcome this challenge, QSR brands can work with experienced teams that have the necessary skills to manage the program effectively.

Essential Capabilities That Omnichannel Loyalty System for QSRs Should Have

Recent surveys show that Australian consumers prefer points-based programs and value-driven rewards, such as discounts, cashback, and pay with points, especially post-COVID and in the current economic climate. Mobile presents a massive opportunity for all things loyalty, and during the pandemic, Australian consumers had the highest usage of Mobile Wallet globally, thanks to vaccination passes and QR codes. However, many QSR brands are not taking advantage of the fact that Australian consumers have had massive behavioural change and are now adopting these loyalty programs.

According to Marigold’s Buyer’s Guide to Omnichannel Loyalty, brands should consider the essential capabilities of their loyalty system to deliver a cohesive and unified customer experience, regardless of the channel or touchpoint. However, not all loyalty systems are created equal, and QSRs must ensure that their loyalty program has essential capabilities to drive engagement and revenue growth.

  1. Loyalty Management: It enables brands to capture and track customer data to identify their preferences, behaviours, and interactions across channels. With this data, QSR brands can tailor personalised rewards and experiences that match their customers' needs and expectations. A good loyalty management system should enable brands to manage their loyalty program, including point redemption, reward fulfilment, and member communication.
  2. Immersive Engagement: This capability includes personalised content, targeted messaging, and interactive experiences that engage customers and encourage them to take action. Brands can leverage augmented reality, gamification, and social media to enhance the customer experience and increase customer engagement. Immersive engagement is crucial for QSR brands to differentiate themselves from competitors and create memorable experiences that drive loyalty.
  3. Offer Management: Another critical capability that QSR brands should consider, this enables brands to manage their promotions and offers across channels, including email, mobile, web, and in-store. With offer management, brands can create personalised offers and promotions that match their customers' preferences and behaviours through discounts, free items, or exclusive deals to loyal customers to encourage them to visit more often.
  4. Mobile Engagement: Finally, mobile engagement is a crucial capability for QSR brands, considering that most customers use mobile devices to interact with brands. It should enable brands to provide mobile-friendly experiences, including mobile apps, mobile-friendly websites, and SMS messaging. QSR brands can reach their customers wherever they are and provide relevant and timely information. As an example, brands can send personalised offers and promotions via SMS messaging or push notifications to encourage customers to visit their stores.

Omnichannel Loyalty in the Australian QSR market

When it comes to implementing an omnichannel loyalty program in the Australian QSR market, there are unique characteristics to consider. For instance, understanding what your target market values and is incentivised by is crucial. Marigold, a loyalty technology provider, helps QSR brands navigate the Australian market by providing access to loyalty consultants with global experience who can help design loyalty strategies and programs that consumers will want to participate in.

In addition, Marigold's loyalty technology enables QSR brands to deliver omnichannel loyalty and personalised experiences that their members expect. However, QSR brands must also consider data security and privacy in the Australian market. Australians have had a significant number of high-profile data breaches and are becoming increasingly aware of the risks associated with sharing their personal data. Brands must show that they are treating consumers' data with respect and provide more value in exchange for personal information. By working with Marigold, QSR brands can successfully implement an omnichannel loyalty program that meets the unique needs of the Australian market.

Key Takeaway

Omnichannel loyalty is the next big thing for QSR brands because it provides a seamless and integrated experience for customers across all channels, whether it's in-store, online, or through mobile apps. With the rise of digital technologies and the pandemic-driven shift to online ordering and delivery, customers are expecting more personalised and convenient experiences. Having an omnichannel loyalty program enables QSR brands to leverage customer data and deliver personalised rewards and promotions that cater to individual preferences and behaviours. This, in turn, increases customer engagement, retention, and lifetime value, ultimately leading to increased revenue and profitability for QSR businesses.

If you're a QSR brand looking to implement an omnichannel loyalty program, we invite you to experience how Marigold can help. Contact Sara at [email protected] to learn more how Marigold can help you design a loyalty program that your customers will love and help drive growth for your business.

Connect Now

Other Articles