Receipt 1 of 2
A national quick-service restaurant chain
Marketing & loyalty: rewards optimization
The right offer, at the right depth and the right time
A large multi-market network with strong morning traffic, mobile order-ahead and drive-through. Its loyalty program already worked, but results varied widely by market, daypart and visit habit, so national offers did not always produce the best local outcome. Offers were broad-based rather than tuned to a member’s lifecycle or to how they actually visited: the commuter morning against the weekend afternoon. First-party transactions and loyalty data were combined with public, aggregated spend signals to find where a targeted incentive would convert best; eligibility had to work the same way in the app, in mobile order-ahead and in the store; and clean A/B tests with guardrails had to show promotional spend going down while loyalty growth and repeat visits went up, not the other way round.
Built
- Lifecycle segments and propensitiesNew, routine and lapsing members, scored for conversion, morning-daypart frequency, basket lift and offer fatigue.
- Offer selection with capsThe incentive (points multiplier, bundle or dollars off), its depth and its timing, chosen by lifecycle and behavior, with margin and frequency caps enforced.
- Spend reallocationPromotional spend moved toward the cohorts and offers that performed best, to stop over-discounting.
Totals
- Loyalty sign-ups, in the targeted dayparts and markets+14%
- Repeat visits, among active members receiving tuned offers+11%
- Discount dollars per incremental visit−8%
Reported by the client.
Case study: Loyalty rewards optimization for a QSR chain