LoyaltyPlant

Best restaurant apps to grow customer loyalty

Posted on 18.10.202421.11.2024 by Anna

Every restaurant owner aims to grow their restaurant’s revenue, but not all achieve success. The reasons behind these ups and downs can vary, from managerial skills to external factors like location and global crises.

One thing is clear: for sustained growth, a restaurant needs more than just great food and a well-organized team. A dedicated restaurant app, combined with an effective loyalty program, is no longer optional—it’s essential. In this article, we’ll explore what makes a restaurant app a truly revenue-driving tool.

Recent research shows the rising importance of loyalty programs, with 51% of U.S. consumers using them in restaurants, up from 45% last year. Quick-service restaurants (QSRs) see the highest participation at 49%, while 34% of full-service restaurant (FSR) customers are also engaged. This trend highlights the growing value of loyalty programs for driving customer retention and growth.

Are branded apps and loyalty programs like body and heart?

Many restaurants, when selecting a company to create an app, believe that simply having a well-designed app is enough. However, this is a major misconception. What truly makes your app effective is your loyalty program, and what powers your loyalty program is the app itself.

With that in mind, we’ve identified the five key factors that make your app worth downloading.

Criteria 1: Focus on UI/UX and usability

Having a sleek, stylish app is not enough. The primary focus of the product should always be on the customer experience. Ask yourself: on a scale of 1 to 10, how easy is it for a user to place a new order or reorder their favorite menu items?

Why is this important?

The user’s main goal is to place an order quickly and easily, without any interruptions. Unfortunately, many vendors focus more on adding features than on creating a user-friendly experience.

IT expertise and coding skills alone aren’t enough. A deep understanding of mobile app engagement strategies, user behavior, restaurant app KPIs, and more is critical to ensuring the success and profitability of both the app and your marketing initiatives.

When we download a new app, we’re eager to dive in and start using it. But often, the first thing we encounter is a sign-up screen. 🙄 This can be a major turn-off, as the friction of signing up can drastically reduce user enthusiasm. It’s a common mistake many companies make.

Example:

In the Papa Johns loyalty program, app, and website, we’ve designed a seamless onboarding and activation process without requiring registration upfront, ensuring that no potential guest is lost due to unnecessary complexity.

Additionally, LoyaltyPlant’s Smart landing pages eliminate the need to remember or manually enter promo codes. These landing pages automatically apply offers, further simplifying the user experience and making it effortless for guests to enjoy their bonuses. This frictionless process helps boost user engagement and ensures a smooth journey from start to finish.

Criteria 2. Offer cost-effective gifts to enhance satisfaction

An effective rewards program should focus on reducing promotional costs associated with customer acquisition and retention, while minimizing reliance on discounts. By offering cost-effective gifts, guests can redeem their accumulated rewards for various purposes, such as low-cost menu items based on their loyalty status.

Why is this important?Over-reliance on discounts can erode profit margins and devalue the brand. A well-structured rewards program with low-cost items engages customers and encourages frequent redemptions without reducing the average check size. This strategy not only maintains profitability but also enhances customer satisfaction by adding a sense of joy to every purchase.

Example:LoyaltyPlant aims to boost customer loyalty and engagement without depending heavily on discounts, which could hurt profitability. So, we developed a cost-efficient rewards catalog that provides value to customers while maintaining revenue stability.

Low-Cost Menu ItemsEasily redeemable items like potato wedges that complement main dishes, encouraging frequent redemptions.
High-Cost RewardsPremium items reserved for higher-tier customers, incentivizing members to reach top-tier status.
Charity DonationsPlatinum customers can donate points equivalent to one large pizza. Papa Johns matches this with three additional pizzas, providing meals for families in need.

ResultsDespite the availability of higher-cost rewards, most guests chose to redeem points for low-cost items, resulting in a stable (and sometimes increased) average check size. The new rewards strategy successfully increased customer engagement while supporting revenue growth—proving that a well-structured loyalty program can achieve both customer satisfaction and profitability.

Criteria 3. Use AI to bring more revenue

Leveraging AI for personalized campaigns enables brands to create tailored messages based on individual customer preferences, order history, and frequency. By delivering targeted offers at the right moment, such as a favorite dish, AI helps motivate customers to place an order and stay engaged.

Why is this important?

Personalized marketing is far more effective than one-size-fits-all approaches. Generic offers can be overlooked, while tailored messages resonate more with customers, making them feel understood and valued. This leads to increased order frequency, improved customer retention, and overall revenue growth, proving that AI-driven personalization can drive meaningful business outcomes.

Example:

A key component of Papa Johns’ loyalty strategy is the use of AI-powered personalized campaigns that target customers based on their behavior, preferences, and order frequency. These campaigns aim to deliver the right offer at the right time—whether it’s a free pizza or a special menu item—encouraging customers to place an order within a limited time frame.

The database of Papa Johns guests was segmented into two main categories:

Active Customer Cohorts

Heavy Users: 3+ orders per month
Medium Users: 2 orders per month
Light Users: 1 order per month

Lapsed Customer Cohorts

Lightly Lapsed: No orders for 1-2 months
Medium Lapsed: No orders for 2-4 months
Super Lapsed: No orders for 4-12 months

For example, if a “super lapsed” customer previously showed a preference for Pepperoni pizza, the AI algorithm would send a personalized push notification, such as: “Craving Pepperoni? Get a free slice with your next order!” This targeted message would encourage the customer to return and place an order, reactivating them as an active guest.

Criteria 4. Gamify experience to grow engagement

A successful tiered loyalty program should be dynamic and easy to understand, featuring elements like expiring tiers, a visible progress bar, and automated messages about upcoming status changes. These features keep customers informed and motivated to maintain or elevate their tier status.

Why is this important?If a loyalty program is too complicated or static, it can fail to engage customers, especially younger generations who value instant feedback and excitement. By making the loyalty journey visually appealing and straightforward, customers can easily track their progress and feel a sense of accomplishment. This approach not only boosts visit frequency but also enhances the overall user experience and strengthens brand loyalty.

Example:

LoyaltyPlant introduced a tiered loyalty program, tailored to enhance customer engagement and revenue growth. The program is structured around four distinct levels, each offering progressively better rewards and motivating customers to move up the tiers.

The tiered structure is visually integrated into the app’s main screen, providing customers with clear goals to reach the next level. Each tier has specific criteria and can be customized to match a brand’s unique features. For example, for Papa Johns UAE, we designed the following four statuses:

Bronze StatusAutomatically granted upon downloading the app, offering basic rewards for new users.
Silver StatusUnlocks additional benefits like birthday gifts for customers who meet the spending threshold.
Gold StatusIncludes higher point accumulation and access to exclusive merchandise.
Platinum StatusPlatinum Status Provides VIP perks such as invitations to special events and the option to donate points to charity.

ResultsThis dynamic tiered system not only boosts customer engagement but also encourages increased spending as customers strive to reach higher levels. With the visual progress bar and gamified tier upgrade animations, users interact more frequently. As a result, the program significantly increased average check sizes and customer lifetime value, making it a key contributor to revenue growth.

Criteria 5: Enable seamless integration with delivery platforms

A powerful restaurant app should seamlessly integrate with third-party delivery platforms or offer in-house delivery options to provide a smooth ordering experience.

Why is this important?A lack of integration can lead to fragmented customer experiences, frustration, and missed revenue opportunities. An app that allows customers to place orders, track deliveries, and redeem loyalty rewards in one place provides a cohesive experience and boosts satisfaction.

Example:

At LoyaltyPlant, we offer integrations with major POS systems like Syrve, ensuring that the entire ordering process is fully automated. All online orders are sent directly to the kitchen, and loyalty points are automatically accumulated and subtracted—both for online and in-store orders (via QR-code scanning). Menu items, stop-lists, and order statuses are synced in real-time with the POS system, minimizing manual errors and reducing fraud risk.

With our solution, rewards are only redeemed after validation, and extended targeting options, such as purchase history targeting, are available thanks to the deeper data integration. All sales, stock inventory, and other operational data are automatically accounted for, creating a seamless experience for both customers and staff.

Final thoughts

Building a successful restaurant app that drives customer loyalty and revenue growth requires careful planning and implementation of the right features.

Whether it’s focusing on seamless UI/UX, gamifying the experience, or leveraging AI for personalized offers, each criterion plays a critical role in shaping a rewarding customer experience. By incorporating these elements, you can turn a basic app into a powerful marketing tool that transforms casual customers into lifelong brand advocates.

Curious to see if your app and loyalty program are delivering the results you want?

Take the first step towards optimizing your customer engagement strategy
with a free analysis of your app and loyalty program. If you don’t have an app yet, our team can help you explore the benefits of developing one tailored to your needs.

For existing app users, we’ll identify opportunities to enhance your app’s performance, helping you unlock more sales and elevate customer satisfaction. Fill out the form now to get your free analysis from top experts and discover the untapped potential of your restaurant’s digital presence.

LoyaltyPlant at the L&L Hawaii Barbeque 2024 Partner Convention: Success with a Global Brand in Numbers

Posted on 03.05.202423.05.2024 by Anna

Recently, LoyaltyPlant attended the annual convention of our partner, L&L Hawaiian Barbecue, in the vibrant city of San Antonio, Texas. The event gathered hundreds of franchisees, suppliers, and managers from across America. During the conference, Evgenia Mkrtychian, our Head of Customer Success from New York, closely engaged with franchisees, discussed upcoming growth plans, and received feedback about LoyaltyPlant.

LoyaltyPlant has developed a mobile customer engagement platform, comprising a mobile app with in-app marketing and a loyalty program, website, and a CRM system. Currently, more than 137 locations across the USA have been actively using our application for over four years!

How it all begun

Let’s rewind to the beginning to grasp the necessity for the digital change of L&L Hawaii Barbeque. Established in the 1950s, the brand has flourished for over half a century, focusing primarily on in-store operations.

However, with the evolution of technology and significant global shifts, the emergence of the online realm has posed a considerable challenge. This challenge has directly impacted the brand’s extensive network, requiring adaptation to this new reality and ensuring seamless functionality across all its locations.

Our journey with L&L Hawaii Barbeque commenced four years ago. During this time, we crafted a holistic strategy that seamlessly integrated all critical elements of the mobile customer engagement platform:

• a mobile app with in-app ordering • comprehensive loyalty program with gamification mechanics • a referral program that brings thousands of dollars in extra profit from new users • analytics tools that allow to build more efficient campaigns • CRM system with various marketing modules

By the way, don’t miss reading a post about how we generated over $20,000 in profit with a lottery campaign for L&L Hawaii Barbeque!

To provide context for the current situation, we’ve highlighted several showcasing facts that demonstrate how our work has made a difference for businesses in numbers during these 4 years of work with L&L Hawaii Barbeque.

Here are 4 facts that speak for themselves:

1. 60% of app users started to order more frequently after installing the L&L Hawaiian Barbecue mobile app.

2. We’ve launched several brand-wide campaigns aimed at encouraging repeat purchases and stimulating downloads, resulting in revenue growth of over 67% for our targeted menu positions.

3. Remarkably, 82% of users rated their satisfaction with the L&L app as high, giving it scores between 8 and 10 (the survey was conducted through the mobile app)

4. Award Recognition: The L&L & LP Case Study garnered acclaim, receiving the prestigious Platinum Award in the Mobile/App Category at the 2023 dotComm Awards, reaffirming our commitment to excellence and innovation.

Want to Grow Like L&L Hawaiian Barbecue and Even More?

If you’re interested in creating a revenue-increasing mobile application like L&L Hawaii Barbeque’s or want to learn how to grow online ordering volumes in your restaurant chain, leave your contact details here, and our team will assess your business potential and suggest optimal solutions that can drive real revenue growth.

Gamified Tiered Loyalty System: engaging customers beyond discounts

Posted on 28.11.202419.12.2024 by Anna

Today, it’s not enough for guests to just enjoy good food — they want to feel valued and appreciated. So, how do you create that emotional connection to make guests return time and again?

At LoyaltyPlant, we’ve cracked the code.

After years of driving innovation in food tech, we’re pleased to introduce our latest feature: the Gamified Tiered Loyalty System.

This system goes beyond traditional discounts, strengthening the emotional ties between restaurants and their guests. Let’s dive into how it works and why it’s a game-changer for your restaurant’s profitability.

What is the Gamified Tiered Loyalty System?

Imagine every guest becoming part of a game where every order brings them closer to a new level and additional perks. This model lies at the heart of the Gamified Tiered Loyalty System, which assigns guests different statuses based on their order frequency and spending amount.

The main goal is to inspire guests to order more frequently and spend more, as each new level unlocks even more exciting rewards.

What business goals does the system achieve?

Revenue growth:Guests, eager to reach new levels, place more orders, which increases revenue during peak periods. This naturally boosts the average check.
Turning occasional guests into regulars:Gamification engages guests on an emotional level, making their orders feel like an exciting event. They want to return to reach the next level, especially when they can do so through your app or website.
Optimizing loyalty costs:The reward catalog is designed to complement the menu without lowering the average check. These are thoughtful gestures that guests appreciate but don’t replace your main offerings.

Thus, the Gamified Tiered Loyalty System becomes not just a sales tool but a real way to maintain long-term connections with guests and boost their loyalty.

How does it work?

In the system, every new customer automatically receives a basic level, which can be named differently depending on the restaurant’s brand. Even if a customer hasn’t made any purchases yet, they’re already part of the system, motivating them to take the first step.

Level upgrades are based on the total amount spent by the guest over a certain period:

Bronze: The entry level for new users.
Silver: Available after the first transaction, which exceeds the average check.
Gold: For customers who’ve made several purchases.
Platinum: An exclusive level for the most active users.

Unique user experience elements

What makes Gamified Tiered Loyalty System unique for the restaurant industry?

Reward catalog for each level:For guests at the lower levels (e.g., Basic — Bronze and the next — Silver), affordable dishes with low cost (mostly appetizers) are available to create an emotional boost and motivate them to level up through more orders. At the Gold and Platinum levels, exclusive items are offered to encourage guests to place larger orders more frequently.
Gamification and animation:Level transition animations, like in popular games, create a sense of achievement and victory, strengthening the emotional connection between the guest and the brand. Users receive push notifications with animations when they reach a new level or risk losing one, adding an element of surprise and making the process more engaging. This motivates guests to order more frequently to stay at their favorite level.
Widget and progress bar on the home screen:The main screen of the app always displays the customer’s current status and progress toward the next level through a dynamic progress bar. It shows the guest’s current level and the amount they need to spend to reach the next level. This visual reminder sparks interest in the system and motivates guests to reach their next reward.
Bonus tasks:A new feature allows guests to earn points by completing small tasks: placing orders through the app, inviting friends, or ordering larger meals. This not only makes the program more engaging but also increases the average check, helping guests progress through levels faster.
Information page: Customers can access detailed information about the loyalty system, including rewards and conditions for earning them.
Push notifications and animations:Users receive notifications with animations when they reach a new level or risk losing one. This visual approach adds an element of surprise and “game-like” excitement, making the process more enjoyable and motivating guests to order more frequently and stay at their favorite level.

What else will help increase restaurant revenue?

This year, LoyaltyPlant also launched a completely new product for the restaurant industry: smart AI-powered campaigns. These personalized marketing campaigns, driven by artificial intelligence, are not part of the loyalty program but significantly enhance its effectiveness, bringing additional profits to the restaurant.

Smart AI campaigns select personalized offers for each customer based on their order history, automating the process of bringing guests back. This helps increase profits through advanced data management, 100% personalization, and autonomous operation 24/7.

Case study

For one of our major clients, Papa Johns UAE, we implemented the new Gamified Tiered Loyalty System and analyzed revenue growth across different customer categories — from average to top-tier spenders.

The results were impressive (see the graph): the program showed a significant increase in average revenue per user (ARPU) in every category, as follows:

11.3% increase for the medium cohort
17.4% increase for the high cohort
25.9% increase for the top cohort

In the first week, we saw a slight dip in revenue as users adjusted to the updated program. However, just a few days later, the program began delivering noticeable results, leading to consistent revenue growth across all customer categories.

Want to learn more and implement the next-generation Gamified Tiered Loyalty System?

Click here to get a free business review of your online sales channel. Soon, our team will offer you solutions to help increase guest loyalty and restaurant revenue.

AI-powered campaigns: automate a personalized approach and boost sales with ease

Posted on 09.10.202419.12.2024 by Anna

The restaurant business is facing serious challenges: competition is increasing, and attracting and retaining customers requires more and more effort. Collecting and using customer data, as well as automating marketing processes, are becoming key factors for success.

AI-powered personalized campaigns are here to save the day, not only keeping your active guests engaged but also winning back those who’ve stopped visiting. In this article, we’ll take a closer look at how these campaigns work, what sets them apart, and how they save significant time, marketing expenses, and financial resources while boosting revenue.

What are AI-powered personalized campaigns?

An AI-powered personalized campaign is a marketing campaign driven by artificial intelligence that creates tailored offers for each customer based on their order history and preferences to boost revenue. Using advanced data analysis, these campaigns provide 100% personalization, operate autonomously, and send sequences of push notifications with unique offers directly to customers through the mobile app.

This approach enhances customer engagement, significantly increases business profitability, and fosters lasting relationships. By leveraging AI and RFM (Recency, Frequency, Monetary) analysis, customers are segmented into cohorts, allowing each group to receive the right offer at the right time.

The system can even select and send gifts based on a cohort’s past purchases, making customers feel genuinely valued and adding a special touch that transforms occasional visitors into loyal fans.

Why it’s unique in the market

⚙️ Data Management:

The system analyzes customer preferences and RFM metrics (recency of last visit, purchase frequency, and monetary value), automatically launches A/B tests with control groups, and provides visualizations of campaign performance, including ROI calculations.

🔑 100% Personalization:The system offers personalized promotions, choosing the most suitable one from pre-approved options, sends push notifications addressing customers by name, and uses smart notification sequences to create a sense of personal interaction.

♻️ 24/7 Autonomous Operation:The campaigns work autonomously without requiring manual relaunch, regularly analyzing the audience, gathering new segments, forming control groups, and automatically relaunching to maintain activity. They adapt offers to current guest needs and provide up-to-date reporting.

📊 Advanced Analytics:

Detailed reports allow you to assess the impact of campaigns on sales and accurately calculate return on investment. By using control groups, you can measure the true effectiveness of each campaign, compare results between targeted and non-targeted audiences, and gain deeper insights into customer behavior.

6 Steps to launch AI-powered campaigns

AI-powered campaigns create personalized interactions for customers based on their order history, preferences, and purchase frequency.

The main goal of such campaigns is to tailor the perfect offer based on the guest’s tastes and habits. This could be a free dessert or any other menu item that motivates the guest to place an order within a limited time frame.It’s also important to note that depending on how “lost” a customer is (e.g., 1 week or 1 month), a more valuable or less valuable gift will be sent to avoid overpaying for those who are likely to return on their own, while giving more attractive offers to those who are less likely to return, maximizing their incentive to place an order.

Case study and business results

Since launching AI-powered campaigns for various customer segments at one of our key clients, Papa Johns UAE—operating over 90 locations in Dubai—we’ve achieved a consistent monthly growth in marginal profit from direct online orders, both through the app and the website.

What we did:

• Targeted Audience Segment: Customers who previously ordered but haven’t placed an order in the last 1-2 months.

• Result:

Result: A 7% increase in monthly marginal profit from smart AI campaigns (June 2024).

AI-powered personalized campaigns are not just a tool for customer retention—they’re a powerful mechanism for driving profit growth and enhancing loyalty.

With a combination of advanced personalization, automation, and analytics, restaurants can not only retain existing customers but also significantly increase their sales. The best part? The campaigns operate entirely autonomously, requiring no manual support, so you can focus on other priorities while the system works to grow your business.

Are you ready to elevate your restaurant's profitability?

Find out how you can launch AI-powered campaigns for your restaurant chain and get a free business review of your online sales channel from the Loyalty Plant team.

8 pillars of a winning loyalty program with a market-unique gamified experience

Posted on 12.08.202409.10.2024 by Anna

These days, in the competitive QSR market, standing out requires more than just great food and service—it demands innovation, strong customer relationships, and a personalized approach. LoyaltyPlant with Papa Johns UAE team spearheaded a loyalty program that revolutionizes customer interaction through gamification, resulting not only in increased engagement but also significant business growth.

In this post, we present the 8 PILLARS OF A WINNING LOYALTY PROGRAM— a comprehensive guide that contributed to Papa Johns UAE’s triumphant win at the prestigious Loyalty360 awards. This achievement signifies more than just an award; it marks a milestone for our team in elevating loyalty to unprecedented levels within the QSR market.

At the end of this post, you’ll find a video that captures a moment reminiscent of when Steve Jobs and Steve Wozniak founded Apple and developed their first computers in Jobs’ garage. Similarly, during his finalist presentation at Loyalty360, Papa Johns’ CMO, Karim Chaanine, shared how he, along with Vas Diyachenko (Founder & CEO at LoyaltyPlant) and Paul Ivanov (CTO at LoyaltyPlant), spent over three hours playing StarCraft 2. This evening sparked the vision for gamification, inspired the creation of a groundbreaking approach, and clarified the uniqueness of the whole loyalty program strategy.

Pillar 1. Revolutionary gamified customer experience

At the heart of our strategy lies a gamified customer experience that captivates and rewards. Part 1 of our Papa Johns Case Study explores how gamification transforms mundane transactions into engaging interactions, fostering loyalty beyond mere discounts. Discover how Papa Johns UAE’s innovative loyalty program, crafted with simplicity, and emotional engagement at its core, transforms customer experiences.

With Bronze, Silver, Gold and Platinum statuses and motivational rewards replacing traditional discounts, the loyalty program deepens brand connections and excites users with game-like features. Intrigued? Dive into the full article to explore how this unique approach is revolutionizing the QSR industry in MENA.

Pillar 2. We made loyalty program simple at its core

A great product is useless if it’s hard to use. That’s why our loyalty program is designed to be simple and user-friendly. In the “How to Earn Papa Points” section, clear instructions guide you on earning points, with a basic rule: add a zero to your total spend. Badge signs highlight opportunities to earn more points and level up, making it easy to track your progress.

One key feature is the use of signs on badges, signaling opportunities to earn more points and advance in the game. This visual cue helps users easily identify how they can progress.

Pillar 3. Ai-powered personalized campaigns to win back lapsed customers

Papa Johns UAE maximizes customer engagement and business growth with AI-powered personalized campaigns. Integrated with our comprehensive loyalty program, these campaigns target lapsed customers with tailored offers, leading to a 5-7% monthly increase in marginal profit from direct online orders. Curious about our innovative approach?
Dive into the full article to discover how AI is transforming customer re-engagement strategies at Papa Johns UAE.

Pillar 4. A loyalty program that facilitates gradual onboarding and activation, with cost-efficiency in mind

Papa John’s loyalty program makes joining it easy by skipping complicated sign-ups, ensuring users stay engaged right from the beginning and boosting how long they use the app. Moving up from Bronze to Silver status rewards users for their first transactions, making it easier to earn perks and encouraging more purchases.

This approach not only reduces early drop-offs but also keeps users excited about earning rewards, turning occasional users into loyal customers over time.

Learn more in the full article on how to make your onboarding smooth and never lose a customer.

Pillar 5. Engaging mini-games that help educating customers about the brand’s menu

Explore how Papa Johns UAE revolutionizes menu education with interactive mini-games. Designed to be both fun and informative, these games immerse customers in learning about new flavors and unique pizza offerings.

From interactive tutorials on pizza crusts to memory challenges that reward winners with free pizzas, our approach blends entertainment with education seamlessly. Curious to discover more about our innovative game strategies? Delve into the full article to see how these engaging experiences are reshaping customer engagement and driving substantial revenue growth for Papa Johns UAE.

Pillar 6. Engaging and cost-effective rewards catalogue

Discover how Papa Johns UAE is redefining customer rewards with a focus on cost-efficiency and engagement. By minimizing promotional costs and reducing reliance on discounts, our innovative rewards catalog offers customers personalized gifts based on their loyalty status. From low-cost complimentary items to charity donations and exclusive digital experiences, our approach enhances user satisfaction while driving sustainable business growth. Intrigued by our strategy? Dive deeper into the full article to explore how these initiatives are reshaping customer loyalty in the QSR industry.

Pillar 7. Surprise & delight activities

Papa Johns UAE enhances customer appreciation with Platinum Stickers and exclusive giveaways. Platinum members enjoy VIP status with every order marked by a special sticker, enhancing their experience and emotional connection with the brand effortlessly. Moreover, our exclusive giveaways, such as high-value items, add an extra layer of excitement and motivation for all customers to aspire to Platinum status.

Pillar 8. Exclusive events and other experiences for platinum members

Experience firsthand how Papa Johns UAE strengthens customer connections with exclusive VIP tasting events for Platinum members. These events offer an early taste of new menu items and provide a unique opportunity for direct engagement with C-level management, including Papa Johns UAE’s CEO and Chief Marketing Officer. Discover how these events elevate customer satisfaction and loyalty while driving increased app engagement. Intrigued by our approach? Dive into the full article to learn more about our successful event strategies and their positive impact on customer engagement and business growth.

Watch our video to see firsthand how our gamified loyalty program enhances customer engagement and drives business growth.

In conclusion, our 8 Pillars of a Winning Loyalty Program with a Market-Unique Gamified Experience demonstrate that loyalty is not merely a program but a strategic initiative to connect deeply with customers, drive revenue, and differentiate in a competitive landscape. Join us on this journey of innovation and customer-centricity.

Are you ready to grow?

If you’re ready to grow, leave your contact information here. Our team will conduct a free analysis of your online sales channel and unlock the potential you can achieve by effectively engaging with your most valuable asset—your customers.

Exclusive events to boost loyalty: Part 4 of Papa Johns’ successful growth strategy

Posted on 02.08.202414.08.2024 by Anna

Welcome to the final part of our series on the Papa Johns case study, “Successful Growth Strategy.” In the previous articles, we explained how to make the audience love your brand by creating a strong emotional connection through engaging AI-powered marketing campaigns, a cost-effective rewards catalogue, and a gamified customer experience.

In this post, we delve into the importance of exclusive events in fostering customer loyalty, drawing insights from the successful events organized in May 2024 in Dubai.

Statistics show that consumers are 56% more likely to join customer loyalty programs that offer tiered rewards and exclusive treatment for top customers. Papa Johns UAE leveraged this insight by implementing exclusive events tailored to their customers, resulting in stronger loyalty from their most dedicated guests and an effective PR move to encourage more customers to strive for platinum status.

Discover how exclusive events can serve as a powerful tool in your loyalty strategy, driving repeat business and fostering lasting relationships with your audience.

How to make guests feeling unique?

Creating a sense of exclusivity and uniqueness for your guests can be a powerful way to build loyalty without relying solely on discounts. Here are two innovative mechanics to retain your guests and make them feel special:

Pillar 7: Growing Emotional Loyalty Through Platinum Stickers and Giveaways

One simple yet effective method is the use of Platinum Stickers. These VIP stickers can be placed on the pizza boxes of Platinum members, signaling their special status and making them feel valued. This small touch can create a big impact by enhancing the customer experience and fostering a deeper emotional connection with the brand.

This approach doesn’t require significant effort from the restaurant. All you need to do is add a special Platinum sticker in your POS system and organize the process to ensure that every order made by a customer with Platinum status includes this sticker.

Another enticing strategy is to offer exclusive giveaways. For instance, the brand could run a promotion where Platinum status members have the chance to win high-value items, such as an iPhone. This type of reward not only provides an exciting incentive for current Platinum members to remain loyal but also motivates other customers to strive for Platinum status.

These giveaways create an extra layer of motivation and engagement, as customers feel they are part of something exclusive with access to unique opportunities and rewards. This can significantly enhance customer satisfaction and loyalty.

Pillar 8: Exclusive VIP Tasting Events for Premium Platinum Members

The idea of creating an exclusive event arose as a solid basis to foster a closer connection with our guests. Platinum status members have an opportunity to taste the new menu first before this menu position will be available for the rest of the audience. Together with Papa Johns team, we crafted a unique workflow for the event, detailing how to invite attendees, plan activities, and handle the technical organization. After compiling all our ideas, we successfully hosted our first offline event for platinum status members in May in Dubai.

It was an absolute triumph! Meeting the loyal customers in person was incredibly exciting for the team. The C-level management team from Papa Johns, including Tapan Vaidya (CEO at Papa Johns UAE, KSA & Jordan), Karim Chaanine (Chief Marketing Officer at Papa Johns UAE, KSA & Jordan), and Vas Diyachenko (Founder & CEO at LoyaltyPlant), engaged closely with the guests, establishing a direct connection.

Discussing opinions and suggestions, sharing joyful moments together, and witnessing the positive atmosphere inspired everyone. It highlighted growth opportunities and left all the guests feeling special and valued. We received an outpouring of positive feedback about the app, loyalty program, and the pizza itself.

Business impact: positive user feedback and engagement metrics

Hearing words of gratitude from the guests, receiving sincere feedback about the events, and learning about their experience is priceless. It’s incredibly rewarding to know that all the efforts to enhance customer satisfaction and loyalty are truly making a difference.

When discussing engagement, it’s crucial to note that the average session time on the application has increased by 64%. This indicates that users are now spending more time in the app exploring various features such as the reward catalog, gifts, and games. This growth reflects a significant uptick in user interaction and interest, highlighting the effectiveness of our engagement strategies.

Are you ready for growth?

If you’re ready to grow, leave your contact information here. Our team will conduct a free audit of your online sales channel of your restaurant and unlock the potential you can achieve by effectively engaging with your most valuable asset—your guests.

What makes customers love your loyalty program? Part 3 of Papa Johns’ successful growth strategy

Posted on 29.07.202407.08.2024 by Anna

Welcome to the third part of our series on the Papa Johns case study, “Successful Growth Strategy of Papa Johns .” In the previous parts, we explained how we created a gamification-focused tiered loyalty program and AI-powered marketing campaigns and mini-games
to grow the revenue.

Today, we dive deeper, uncovering the secrets behind Papa Johns’ continued success in fostering unwavering customer loyalty. Get ready to discover advanced strategies and real-world tactics that will not only captivate your audience but also turn them into lifelong fans. Let’s embark on this journey to mastering the art of brand love!

The Main Problem of Loyalty Programs

One of the main drawbacks of any loyalty program in any industry is ensuring that customers understand how the program actually works. For example, many frequent flyers earn miles but have no idea how to spend them. This lack of understanding renders the program useless to many customers. So, what’s the use of a program that your customers don’t understand how to use?

In Papa Johns loyalty program, we decided to make the process as simple as possible.

Pillar 5: A loyalty program that facilitates gradual onboarding and activation, with cost-efficiency in mind

When we download a new app and can’t wait to open it and start using it, we often encounter a sign-up screen. 🙄 At this moment, your willingness to start using the app can decrease —a significant drop caused by the friction of signing up. This is a common mistake many companies make.

In the Papa Johns loyalty program, app, and website, we designed a seamless onboarding and activation process without any registration from the first screen to ensure we don’t lose a single guest due to complexity.

According to a study by Localytics*, apps with a smoother onboarding experience see up to a 50% higher retention rate in the first week. By simplifying the initial steps, Papa Johns ensures that new users can quickly engage with the app, driving higher customer satisfaction and loyalty right from the start.

* Localytics, “The Impact of App Onboarding on User Retention”

When a user downloads the app, they automatically receive Bronze status and unlock the ability to earn Bronze status rewards using points. The cost of the initial rewards has been intentionally reduced so that users can quickly experience the satisfaction of earning points and receiving their first gift.

Additionally, customers are almost guaranteed to achieve Silver status after their first purchase, making promotion feel real. This approach gives users a sense of victory and confidence, reinforcing the belief that it’s easy to accumulate points and get rewarded.

This strategy helps us address a common issue that apps face: users often churn after making their first purchase. The most challenging part is encouraging them to return and make a second or third purchase until it becomes a habit and they turn into loyal customers. With our gamified approach and explicit reward catalog system, users are continually motivated by the tangible benefits they can earn through any interaction with the app.

Tires and the philosophy behind progress bar

The idea behind progressing from Bronze to Silver status is to give users the feeling of their first success, or win. The upgrade from Silver to Gold status is designed as a ‘fight for one more order’ incentive. It encourages users to make an additional purchase, which they might not have done otherwise.

The main goal of the Gold tier is to motivate users who typically make only one transaction a month (about 70% of users) to make one more purchase. When a user is upgraded to Gold status, they are informed that their previous purchases have already been counted, making it easier for them to achieve the next status level.

The main problem with costs on rewards

Another significant philosophy that we discussed earlier and will now elaborate on is the aim to minimize promotional costs related to customer acquisition and retention, while reducing dependence on discounts. Papa Johns developed a cost-effective rewards catalog that allows guests to receive gifts based on their status and also to use their accumulated rewards for other purposes.

In the following part, we’ll explore how to correctly create a rewards catalogue and avoid running into financially negative results.

Pillar 6: Engaging and cost-effective rewards catalogue

Drawing from insights gained in our initial loyalty program, we optimized the rewards catalog to emphasize low-cost complimentary items. This strategy enhances the program’s cost-efficiency by encouraging frequent redemption without replacing main dishes.

Our goal is to manage gift expenses by offering inexpensive complimentary items. These gifts from the catalogue are intended as complementary menu items rather than substitutes. They do not reduce the check size but aim to enhance user experience with a sense of joy.

Low-cost menu items:

Engages customers by making loyalty rewards easily attainable
Priced to encourage point redemption over expensive rewards

High-cost menu items:

Reserved for higher-tier customers.
The point cost is higher than that of low-cost rewards

Charity / Donations: Rather than ordering pizza for yourself, you have the opportunity to donate your points to charity, benefiting families in need.

Platinum customers can donate the equivalent of one large pizza.
Papa Johns matches with 3 additional pizzas, providing a meal for a family in need.
Papa Johns distributes the pizzas and shares updates on social media

Digital / Experience rewards (coming soon):

Redeemable by higher-tier customers
Include unique promo codes for partner apps

Merch (coming soon):

Super-cheap items like sticker packs at stores
Expensive status items like the “Platinum Club” mug

Business results: cost-efficiency in action

What’s the point of any new update if it doesn’t bring about a business impact? In addition to delivering an unforgettable user experience for Papa Johns’ guests, it has also positively influenced the revenue growth of Papa Johns UAE itself, which is our primary goal. These metrics demonstrate how the brand’s incentive and reward strategy has increased customer loyalty and achieved related goals.

Our hypothesis that most of the rewards would be redeemed for low-cost menu items was correct. Despite the option to receive a free pizza using collected points, users preferred to redeem rewards for complimentary meal items, such as potato wedges. This behavior resulted in the average check amount not only remaining stable but actually increasing.

Are you ready for growth?

Do you want to start a game-changing loyalty program for your restaurant? Regardless of the size of your business, we offer you the chance to experience the best world practices and build real connections and relationships with your audience. This will not only make your guests truly love your brand but also boost your restaurant’s revenue. If you’re ready to grow, leave your contact information here. Our team will conduct a free business analysis of your restaurant and unlock the potential you can achieve by effectively engaging with your most valuable asset—your guests.

Growing revenue with AI-Powered marketing campaigns and mini-games: Part 2 of Papa Johns Case Study.

Posted on 22.07.202431.07.2024 by Anna

We’re about to dive into our second article in the series on the “Successful Growth Strategy of Papa Johns.” In the previous post, we explored a revolutionary approach to building customer loyalty with a gamification-focused tiered loyalty program, unique to the QSR business in the MENA region.

Each of the described strategies unveils critical insights and proven strategies that have transformed Papa Johns loyalty program into a model of success. In this article, we dive into two more game-changing strategies: how to grow revenue with AI-powered marketing campaigns and how to educate customers through engaging mini-games. Fasten your seatbelts as we start revealing our biggest secrets and share the astonishing results of our loyalty program.

Spoiler alert: Papa Johns achieved a 5-7% increase in monthly marginal profit from direct online orders through both the application and website with our AI-driven campaigns and reached over 10,000 participants in our mini-game initiatives, bringing in tens of thousands of extra dollars in profit!

Pillar 3. Ai-powered personalized campaigns to win back lapsed customers

The Papa Johns Loyalty program is incredibly intricate. As discussed in previous article, it includes a tiered loyalty program with gamification elements, statuses, a rewards catalog and more. A crucial component of this comprehensive loyalty solution is AI-powered personalized campaigns.

These campaigns create personalized messages for customers based on their order history, preferences, and order frequency. The main goal of these campaigns is to match the perfect proposal, which can be a free pizza or any other menu item, that will encourage a customer to place an order within a limited time frame. Each of these special proposals is formed using a specially verified AI algorithm.

We divided the entire database of guests into two categories:

Active customer cohorts:

Heavy users: 3+ orders a month
Medium users: 2 orders a month
Light users: 1 order a month

Lapsed customer cohorts:

Lightly lapsed: no orders for 1-2 months
Medium lapsed: no orders for more than 2-4 months
Super lapsed: no orders for more than 4-12 months

Example: if there is a super lapsed user who likes Pepperoni, after internal calculations, the system might send a push notification with the following message:

Thus, the AI-powered campaigns create various marketing push messages to encourage customers to place an order as soon as possible. Such AI campaigns show fantastic business results, as evidenced by the growth in marginal profit, which you can read about in the following part of this article.

Business impact: incremental marginal profit from ai-powered personalized campaigns

Since launching AI-powered personalized marketing campaigns for different target groups within Papa Johns audience through our CRM system, we consistently receive a 5-7% increase in monthly marginal profit from direct online orders through both the application and website.

These personalized campaigns enable us to tailor our marketing efforts more effectively, targeting specific customer segments with relevant offers and promotions. As a result, we have seen improved customer engagement, higher conversion rates, and increased customer loyalty.

The implementation of AI technology in our marketing strategy has proven to be a valuable asset, contributing to the overall growth and profitability of our online sales channels. We continue to refine and optimize these campaigns to sustain and further enhance our business performance.

Pillar 4. Engaging mini-games that help educating customers about the brand’s menu

Imagine discovering new menu items in a way that’s not just informative but incredibly fun! We found an innovative way to educate customers about their new flavors and unique pizza offerings through captivating mini-games. These games make learning an adventure, allowing customers to remember everything from new flavors to the intricacies of pizza-making in an enjoyable and memorable way.

Papa Johns’ mini-games are designed to be both exciting and educational. They strike the perfect balance between challenging and entertaining, keeping players engaged without overwhelming them. Plus, the thrill of competition is heightened by the chance to win a free pizza with a new flavor they’ve never tried before!

Here is how it looks: a dedicated app section introduces the new Crispy Parm Crust and invites customers to play “The Game of Crusts”:

Take, for instance, a special section of the Papa Johns app that introduces the new Crispy Parm Crust. It invites customers to dive into ‘The Game of Crusts’, starting with an interactive tutorial that educates them about different pizza crusts, including the top four from Papa Johns.

As the game begins, players learn about various pizza types and flavors, helping them get familiar with the menu. Later, they must match pizza cards to win, reinforcing their memory of the menu items. This unique approach ensures that players who remember the details can win, making the experience both challenging and incredibly rewarding.

Do you want to play by yourself? Go for it now!

Launching this game marketing campaign involved creating a dynamic landing page with a QR code, various attribution methods, and gift activations. The response was phenomenal! Over 10,000 people participated in the quest from start to finish. Despite our initial worries that the game might be too complicated, our fears were unfounded. Nearly 30% of participants who completed the quest converted to real orders, bringing in tens of thousands of dollars in additional revenue!

For the QSR market, it’s undoubtedly a perfect solution because marketers in this field always think about how to introduce new menu items in a way that feels natural and playful, rather than overtly sales-driven. By integrating mini-games into their marketing strategies, Papa Johns has not only educated customers about their menu but also sparked excitement and boosted engagement, driving significant revenue growth. This innovative approach has turned learning about pizza into an unforgettable adventure.

Ready to grow?

If you’re ready to grow, leave your contact information here. Our team will conduct a free business analysis of your restaurant and unlock the potential you can achieve by effectively engaging with your most valuable asset—your guests.

Gamified Customer Experience: Part 1 of Papa Johns’ Successful Growth Strategy

Posted on 09.07.202424.07.2024 by Anna

Imagine a loyalty program so engaging that it turns every purchase into a game, every interaction into a challenge, and every reward into a victory. This is exactly what we had in mind when we introduced the latest iteration of the loyalty program with Papa Johns UAE.

We are thrilled to announce the launch of a series of blog posts that will unveil the secrets behind the success of Papa John’s loyalty program. These posts will also reveal what stood behind our recent triumph at the prestigious Loyalty360 awards in the USA, where we outshone renowned brands such as Cracker Barrel, Tim Hortons, Enfamil, and Hilton.

Let’s start from the beginning and understand the background and market situation.

Why we needed to make a real change?

Papa Johns UAE is an international QSR franchise operator with over 80 stores across the UAE. It’s important to note that in developing markets like MENA, aggregators dominate, holding more than 90% of the delivery order market share for the restaurant industry.

Additionally, customers in these markets are heavily focused on discounts, leaving restaurants with little room for profit as they are constantly pressured to lower prices. Furthermore, aggregators have recently started introducing their loyalty programs, presenting an extra challenge to create something truly revolutionary.

We knew that entering into this competitive cycle would be a losing proposition; we needed to rethink our approach completely. Months of market research and analysis drove us to a new idea: an entirely gamified and interactive digital customer experience. It’s an experience driven by engagement—ordering food is simply a by-product of the customer’s relationship with the brand.

You can’t easily move giants like aggregators, right? But you can be DIFFERENT with a TOTALLY DISTINCT APPROACH: transforming your marketing strategy, and with it, your entire customer engagement philosophy. In response to aggregators’ unsustainable business models for businesses, Papa Johns, in collaboration with LoyaltyPlant, set several objectives to achieve:

Decrease the proportion of orders from aggregators, which accounted for over 90% of the online sales.
Minimize promotional costs associated with customer acquisition and retention, while reducing dependency on discounts.
Increase ARPU (average revenue per user) in the last 60 days.
Maximize the 3-month LTV (lifetime value) of new users.
Keep loyalty program expenses within 3% of total loyalty revenue.

To achieve these goals, we completely reimagined our approach to loyalty and found a new solution for Papa Johns. We aimed to implement a new technology platform, enabling us to operate with a higher degree of autonomy while cultivating direct customer relationships.

To achieve this, we:

Launched our own app with integrated loyalty, ordering, and marketing features.
Started to transfer digital orders to a direct channel.
Transitioned from discounts to complimentary rewards.

The platform included a rewards-based loyalty and ordering app, a content management system, data analytics tools, and an advanced marketing suite. With the incentives offered by our initial rewards program, the early results were clear: we were rebuilding our brand equity, improving our financial results, and providing a significantly better customer experience.

As a result, we created an entirely gamified and interactive digital customer experience. It’s an experience driven by engagement—ordering food is simply a by-product of the customer’s relationship with the brand.

Pillar 1. A gamification-focused tiered loyalty program, unique to the QSR business in MENA

When Vas, CEO of LoyaltyPlant, met with Karim Chainee, CMO of Papa Johns UAE, at a café to discuss the architectural framework for the entire workflow, they focused on the following main points:

• Simplicity:

Our loyalty program rules should be easy to understand, without lengthy explanations or caveats.

• Gamified UI and UX:

To engage our gaming-oriented audience, we want to integrate gaming mechanics into the app interface, making our loyalty program blend seamlessly with the UI/UX and gaming elements.

• Cost Optimization:

With operational costs increasingly unpredictable in recent years, it is critical that we maintain a flexible cost structure for our loyalty program.

• Emotional Loyalty:

Our focus lies in creating an immersive, emotionally resonant experience that cultivates customer loyalty beyond financial incentives.

Statuses and rewards

The loyalty program consists of four main statuses. Displayed on the main screen of the app, these statuses clearly show how to achieve a new level and include motivational messages to help you maintain your status:

BRONZE STATUS: You receive this status immediately upon downloading the app. You can earn 3,000 points by recommending our app to a friend and access rewards available for Bronze members. To reach the next Silver status, you need to order 60 AED worth of products within 60 days.

SILVER STATUS: This second-level status unlocks new opportunities, such as receiving an exclusive birthday gift and accessing new rewards available at this level. To advance to Gold status, you need to place an additional order of 120 AED within 26 days.

GOLD STATUS: With this advanced status, you earn more points for every 10 AED spent and need to order 39 AED worth of products within 60 days to maintain it. Gold status offers exclusive pizza team merchandise, new rewards, and extra points.

PLATINUM STATUS: The most advanced level, Platinum status, provides perks like participation in exclusive events, access to more valuable menu items, a “VIP Customer” sticker on your pizza box, the ability to donate your Papa Points to charity, and more!

As mentioned earlier, our loyalty strategy significantly reduces reliance on discounts, prioritizing tangible rewards that strengthen our brand connection.

For instance, receiving a $2.5 discount using accumulated points saved over months doesn’t deepen your bond with the brand. However, when your guests receive certain menu items for free from our reward catalog, based on their status level, it creates a completely transformative emotional experience!

And one of the coolest features of the tiers is the tier upgrade animation, just like you’d see in popular online games! It’s that feeling you get, like when you’re playing your favorite game and leveling up—being part of something big.

Pillar 2. We made loyalty program simple at its core

No matter how amazing a product is, if people don’t understand how to use it, it’s all for nothing! That’s why we made sure to design our loyalty program with the simplest and most user-friendly interface from the start.

In the “How to Earn Papa Points” section of the app, you’ll find clear explanations of all the ways to earn more points. The base loyalty earning scheme is easy to understand: simply add a zero to the total amount spent. Depending on your current status, you’ll see simple instructions on what you need to do to reach the next level.

One key feature is the use of green signs on badges, signaling opportunities to earn more points and advance in the game. This visual cue helps users easily identify how they can progress.

Business impact: increase in number of high-paying customers

We conducted a year-over-year analysis of the revenue results for different groups of customers: Medium, High, and Top. Among these three categories, we observed significant growth in average revenue per user (ARPU): an 11.3% increase for the Medium ARPU cohort, a 17.4% increase for the High ARPU cohort, and a remarkable 25.9% increase for the Top ARPU cohort (see the table below).

In the first week, we noticed a slight revenue drop as users across all cohorts went through an adaptation period. However, after a few days, the new loyalty program started to take effect, resulting in a substantial revenue boost.

Are you ready for growth?

If you’re ready to grow, share your contact information here. Our team will conduct a free business analysis of your restaurant and unlock the potential you can achieve by effectively engaging with your most valuable asset—your guests.

New Book Release: “Customer Success Playbook: Your Practical Guide to Winning Customer Loyalty in B2B SaaS”

Posted on 03.05.202428.05.2024 by Anna

LoyaltyPlant’s Director of Customer Success & Corporate Communication Strategy, Evgenia Mkrtychian, a recognized leader in the field of marketing and corporate communications, is thrilled to announce the launch of her book, “Customer Success Playbook: Your Practical Guide to Winning Customer Loyalty in B2B SaaS”, now available on Amazon in both Kindle and paperback formats.

In the ever-evolving world of customer success, the need for a clear, actionable guide has never been more critical. “Customer Success Playbook” offers a comprehensive roadmap for professionals who are dedicated to achieving excellence in customer service and retention.
Drawing from years of industry experience, Evgenia provides readers with practical strategies, detailed case studies, and real-life examples that are designed to transform customer interactions into lasting loyalty.

“The heart of any successful business lies in how well it can not only attract but also maintain and enhance customer relationships over time,” says Evgenia. “This book is crafted to help businesses of all sizes achieve that goal through proven tactics and methodologies.”

Key features of the book include:

Step-by-step guides on implementing effective customer success strategies.
Insights into the psychology of customer satisfaction.
Techniques for building and maintaining strong customer relationships.
Practical advice on using feedback to enhance service offerings.

“Customer Success Playbook” is an essential resource for customer success managers, business owners, and anyone looking to improve their customer engagement techniques. With its practical approach, the book promises to be an indispensable tool in the arsenal of professionals aiming to excel in this dynamic field.

The book is now available for purchase on Amazon. Readers can look forward to not just improving their strategies but also ensuring that their customers become the biggest advocates for their business.