To attract new customers and foster loyalty, restaurants can benefit significantly from card-linked offers, as revealed by PYMNTS Intelligence.
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GLOTo attract new customers and foster loyalty, restaurants can benefit significantly from card-linked offers, as revealed by PYMNTS Intelligence.
By examining data from a July survey of over 2,000 U.S. consumers in the report titled “Leveraging Item-Level Receipt Data: How Card-Linked Offers Drive Customer Loyalty,” it is evident that 53% of individuals likely to participate in a product-specific card-linked offer program within the next three months—or 44% of all consumers—are highly inclined to do so for restaurant purchases.
The card-linked offers that prove most effective in cultivating customer loyalty are those offering cashback rewards, with over half of consumers highlighting generous cashback rewards as a key motivator for using card-linked offers in the future. Additionally, 37% stated that cashback rewards are their primary incentive.
In practice, credit card dining offers seem to be boosting restaurant sales. According to Mastercard’s SpendingPulse report released on September 19th, the restaurant sector experienced a notable growth rate of 5.4%, surpassing the 3.9% growth observed in the grocery sector.
Restaurants are actively seeking ways to increase foot traffic, especially in the face of menu price increases that have led to declines in customer visits. Some restaurants even missed out on the expected boost in sales during the summer season.
Cracker Barrel CEO Sandy Cochran noted during a call on September 13th that they had anticipated improved traffic in June and July with the start of the summer travel season. Unfortunately, this did not materialize, which was attributed to a challenging consumer environment and marketing missteps.
In a recent earnings call, Dine Brands, the parent company of Applebee’s and IHOP, mentioned a slight decrease in traffic, as did The Cheesecake Factory, which saw a 3.7% decline.
However, it’s clear that deals and offers have the potential to bring customers back. For instance, Applebee’s responded swiftly to a softening in traffic by intensifying their promotional efforts, which appeared to positively impact traffic as the quarter progressed, according to CEO John Peyton.
Source: PYMNTS
