Leveraging Loyalty to Enhance the Value Proposition in Canada

Value is key to foodservice purchases. In fact, 87 percent of consumers polled for our Canadian Value & Pricing Consumer Trend Report say that value is either important or extremely important to them when deciding which restaurant or other foodservice location to visit.

But what is a value in today’s world? Perceptions of value are ever-changing, and Technomic’s latest report delves deep into the value equation to identify the factors that create a strong value proposition. One factor is loyalty or rewards programs.

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Source: Technomic’s 2013 Canadian Value & Pricing Consumer Trend Report

Implications for Foodservice Operators

Ample opportunities exist for Canadian restaurant operators to use loyalty marketing to not only enhance consumers’ value perception of their brand, but also drive traffic. Operators who do not currently offer a loyalty program may want to consider providing one and should make sure to offer rewards that will appeal to their customers. For example, loyalty programs often reward members with a free item after a certain number of purchases. This type of reward appeals to nearly two in three (64 percent of) loyalty-program members.

Those who do offer loyalty or rewards programs should make sure they are marketing these programs effectively in order to increase participation rates. For example, operators can use on-premise marketing techniques such as table-top or menu signage and server or cashier inquiries.

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Anne Mills

Anne Mills is a Consumer Research Manager at Technomic Inc. She works on the firm’s Consumer Trend Reports, a series of more than 25 annual studies that keep U.S., Canadian and U.K. foodservice professionals up to date on the evolving menu and consumer trends in key foodservice areas including: food and beverage categories, restaurant sectors, dining occasions, consumer segments and more.

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