Your customers are tied to their mobile devices. From researching and buying products to finding restaurant recommendations, coupons and nearby points of interest, the mobile platform is where restaurants need to win with customers.
To carve out your share of your customer’s attention, you likely have a mobile app that’s packed with functionality to keep customers engaged and coming back for more visits. But research suggests that the vast majority of apps are abandoned within 90 days. And even if your app is used regularly by customers, they likely have push notifications turned off.
The challenge for restaurants has become developing an “app-plus” strategy—finding ways to use mobile technology to drive customer engagement outside of the app while complementing your app investment.
The foundation for such a strategy? Mobile-enabled coupons and loyalty.
Research by digital marketing firm eMarketer shows that in 2015 alone, mobile coupon users rose to 92.6 million, about an 18% increase from the previous year. So brands are now placing big bets on mobile-based coupons and making them more readily accessible.
The trend first gained popularity with retailers, many of which are constantly finding new ways to compete to offer the best deals. But the restaurant and quick-service industries stand to benefit from mobile coupons as well.
Results from our surveys in 2016 found that nearly 60% of customers make more monthly visits or purchases because of mobile coupon and loyalty programs.
In another survey, brands said that coupon delivery and redemption was their top mobile objective for 2017.
These trends provide a glimpse into the future and suggest the key mobile strategies and tactics that restaurateurs must embrace to drive traffic and keep customers coming back. Here are just a few.
1) Drive Foot Traffic
More people now use their mobile devices to search for the nearest restaurants that offer specific menu choices or valuable offers, and 80% of diners are likely to try a new restaurant if it is offering a promotion.
Restaurants that implement mobile-based coupons can attract a larger share of these diners and compete more aggressively with other diners in the area.
Proximity marketing capabilities of mobile coupons also helps drive foot traffic. With mobile wallet coupons, multiunit brands can establish geo-fences around restaurant locations.
Once a customer with a mobile wallet coupon is in close proximity to one of the restaurant locations, they will receive a lock screen notification, reminding them of the available offer.
2) Amplify Redemption Rates
Consumers today are rarely more than a few feet away from their phones—and if your coupons are mobile-enabled, they’ll be with your customers, too.
Mobile coupons consistently yield redemption rates nearly 10 times higher than their paper counterparts that get left behind or lost in a wallet or glove box.
3) Increase Customer Loyalty and Lifetime Value
Studies have shown that nearly half of customers who recently participated in a promotional offer are likely to opt-in for future promotions.
What’s more, we have seen an increase of more than 70% average revenue per unit (ARPU) with clients enrolled in an ongoing mobile coupon program.
If deployed correctly, mobile coupons can help restaurateurs realize higher coupon redemption and engagement levels. This means increased sales potential and greater guest satisfaction rates.
These are all key elements that can make your restaurant stand out will keep customers coming back.
Margie Kupfer is vice president, marketing at 3Cinteractive (3C), a Boca Raton, FL provider of mobile marketing technology and services.