Yum Brands and Others Try New Loyalty Strategies to Outperform Competitors

Yum Brands and Others Try New Loyalty Strategies to Outperform Competitors

Restaurants are implementing new strategies to stand out in the competitive loyalty program landscape. Yum Brands, the parent company of popular chains like KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill, has partnered with analytics platform Treasure Data to enhance personalization and improve its brands’ loyalty programs. Yum Brands aims to leverage customer data to deliver more personalized and unique interactions to its customers, aligning with its vision of having digital channels power 100% of its sales.

The demand for personalized experiences in the restaurant industry is evident, with 70% of restaurant customers expressing interest in technologies such as personalized menus, according to a study highlighted in PYMNTS’ “B2B and Digital Payments Tracker.” Targeting digital interactions based on customer data can significantly enhance marketing effectiveness and meet the expectations of today’s consumers.

While larger brands focus on digital advancements, smaller players like Kura Sushi, a tech-focused restaurant chain, are exploring creative approaches to boost loyalty program engagement. Kura Sushi has successfully grown its loyalty program through exclusive merch partnerships with media properties. By offering rewards members exclusive merchandise from popular entertainment brands like “We Bare Bears” and “Demon Slayer,” Kura Sushi has attracted a substantial number of new members per location. The effectiveness of these brand collaborations is evident in the strong correlation between collaborations and membership growth.

In an effort to drive rewards program engagement, Del Taco has launched its Summer of Free promotion, following in the footsteps of DoorDash’s Summer of DashPass. Del Taco offers different exclusive deals each week to incentivize adoption and encourage customers to join its rewards program. With loyalty programs becoming increasingly common among restaurant chains, it is crucial for brands to find innovative ways to differentiate themselves and attract customers.

The prevalence of loyalty programs is evident, with 44% of chain restaurants offering such programs, according to PYMNTS research. Furthermore, a majority of consumers now participate in loyalty programs, with 51% reporting the use of restaurant loyalty programs, as revealed in a recent PYMNTS study. This signifies the importance of loyalty programs in the restaurant industry, both in quick-service restaurants (QSRs) and full-service restaurants (FSRs).

As the competition intensifies, restaurants are leveraging data analytics, exclusive partnerships, and enticing promotions to capture and retain customer loyalty. These strategic initiatives aim to deliver personalized experiences, drive engagement, and ultimately stand out in the crowded loyalty program landscape.

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