Brands that don’t offer or have basic loyalty programs are missing out on a major opportunity to capture customer wallet share, says new report by Incisiv and Punchh.
JACKSONVILLE, Fla., May 17, 2022--(BUSINESS WIRE)--Incisiv, a next-generation industry insights firm that helps retailers and brands help navigate digital disruption, announced today the release of its 2022 Loyalty Maturity Benchmark Research in partnership with PAR Technology’s Punchh, a leading loyalty, offers and engagement solution.
The buying journey has been forever changed, and digital is now the starting point for over 85% of customers across convenience, grocery and QSR, according to new insights released today by Incisiv, in partnership with Punchh. Incisiv’s 2022 Loyalty Maturity Benchmark for convenience, grocery and QSRs assesses the digital capability of loyalty programs across program enrollment, program structure and features, and ease of use.
Incisiv’s assessment methodology spans over 78 measurable attributes, assessing fifty of the top brands across three industry segments, including convenience, grocery and QSRs. Attributes are categorized as table-stakes or differentiating capabilities based on their impact on key digital performance metrics such as average order value (AOV), conversion, customer satisfaction and loyalty.
Through Incisiv’s assessment methodology, 40 brands reached Leader status, including Casey’s, Cumberland Farms, Pilot Flying J, 7 Eleven, Albertsons, Target, Dunkin, El Pollo Loco, Qdoba and others. The complete list of leaders assessed by Incisiv is available to download here.
Key findings of the research include:
There is a major disconnect between customer expectations and what brands offer in their loyalty programs: 70% of customers prefer to use mobile apps to manage their loyalty accounts, yet only 26% of brands provide the capability to do so.
For loyalty program enrollment, customers want easier options from the brands they engage with. While over 70% of convenience and QSR chains enable auto-enrollment, only 36% of grocery chains offer this feature.
67% of customers have come to expect rewards or a surprise gift on special occasions. While 52% of QSR chains have adopted this capability, only 10% of grocers and 8% of convenience chains offer reward perks on special occasions.
75% of customers want instant redemption of loyalty points/benefits, yet only 16% the brands assessed offer this capability.
"Consumer businesses have endured unparalleled disruption to their business models in the last 24 months and should be commended for the speed by which they have adapted," said Amar Mokha, Chief Operating Officer, Incisiv. "However, customer behavior is a moving target, and the industry must evolve to meet expectations, especially as customer loyalty becomes harder to attain. A re-imagined loyalty program aligned to evolving consumer needs will go a long way in ensuring retention. We conducted this study to help brands across the convenience, grocery and QSR sectors understand how they compare to their peers, as well as to help identify high-impact improvement opportunities for loyalty and engagement programs."
"Loyalty offerings have finally come of age – recognized as a fundamental marketing strategy for customer engagement and rising to a mission-critical priority for executive management," said Don Wight, President and General Manager, Punchh. "And with the accelerated need to interact with brands across new channels and technologies, there must be a greater focus on driving digitization, ordering agility and innovation. This study shines a light on those changing preferences on behalf of consumers everywhere."
Click here to download the complete findings from Incisiv’s 2022 Loyalty Maturity Benchmark Report.
Incisiv’s 2022 Loyalty Maturity Benchmark Report is based on insights from its proprietary digital maturity benchmarking methodology. Incisiv’s assessment methodology spans over 78 measurable attributes, 150 brands, 78 digital capabilities and assesses the top 50 brands across three industry segments: convenience, grocery and QSR. Attributes are categorized as table-stakes or differentiating capabilities based on their impact on key digital performance metrics such as average order value (AOV), conversion, customer satisfaction, and loyalty.
Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital.
About PAR Technology
For more than 40 years, PAR’s (NYSE Symbol: PAR) cutting-edge products and services have helped bold and passionate restaurant brands build lasting guest relationships. We are the partner enterprise restaurants rely on when they need to serve amazing moments from open to close, during the most hectic rush hours, and when the world forces them to adapt and overcome. More than 100,000 restaurants in more than 110 countries use PAR’s restaurant hardware, software, drive-thru, and back-office solutions. With the recent acquisition of Punchh Inc., a leading SaaS based customer loyalty and engagement solutions provider, PAR has become a Unified Commerce Cloud Platform for Enterprise Restaurants. To learn more, visit www.partech.com or connect with us on LinkedIn, Twitter, Facebook, and Instagram.
More than 270 global enterprise brands, including Yum! Brands (NYSE: YUM), Denny’s (NASDAQ: DENN), TGI Fridays and Casey’s (NASDAQ: CASY) rely on Punchh to grow revenue by building customer relationships. To learn more about the Punchh Loyalty, Offers and Engagement Platform, visit: www.punchh.com
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Stacy Tung (for Incisiv)
Brittany Maroney (for PAR/Punchh)
Director of Marketing Communications