Loyalty | Product Spec

Owned by Fernandes, Francisco
Last updated: Mar 10, 2023 by da Mota Viana, Duarte Manuel
8 min read

Overview & Context

Over the past few years RBI has launched a number of initiatives to improve the overall experiences of guests across the brands. However, consumer trends and expectations are continually evolving. BK’s and PLK’s competitors, both big and small players are also quick to adapt and catch-up in meeting expectation in the overall journey of guest experiences. To remain competitive for our brand, RBI created a Loyalty Program.

Loyalty Programs allow brands to differentiate themselves, boost engagement with their customers as well as drive growth. Some of its principles lie on:

  • Keeping it simple - Loyalty programs should be easy to understand, easy to adapt to new markets and needs and easy to market and promote

  • Personalized - These programs should leverage data gathered through CRM platforms to personalize customer re-targeting and rewards

  • Fun is the way - Loyalty should be fun and gamified. Moreover, they should transmit the tone of voice and atmosphere in line with the brand’s DNA

A competitive analysis showed that competition (McDonalds, Starbuck, Chipotle, Pizza Hut, among others) is also investing Loyalty on a spend-based tiering system with free products:

  • All competitors across markets are adopting free products as rewards

  • Free rewards enhance the PMIX discovery

  • Free Rewards allow to better control food costs and margin impact

Loyalty should be based on 5 key elements:

  1. Mechanics - based on spending behavior.

  2. Points - conversion rates should be perceived as generous with rounded numbers and with tiers sitting within a reasonable range. Furthermore, points are to be earned and burnt across all channels.

  3. Tiers - between 5 to 6 dynamic tiers. The speed of redemption should be variable with tiers - i.e. initial tiers should be easier to achieve. Lastly, instant rewards to drive trial.

  4. Rewards - each tier should have +4 products. An equivalent discount associated to each tier should optimize the cost of the program.

  5. CRM - Relevant CRM touchpoints based on tiering system.

Business Impact

Loyalty impacts on customers' frequency, check size/value and margins. It provenly:

  • Increases Frequency - Loyalty increases guests' engagement by providing a personalized and enhanced experience. In other words, it changes customer behavior by attracting guests to our stores more often.

  • Increases Margin - Loyalty allows enhanced customer insights which allows to send low margin offers only to who really needs them. In other words, it increases customer insights.

In fact, in a Loyalty Incrementality Analysis RBI conducted in EMEA a 29% uplift in frequency NOC and 9% uplift in check NOC was registered after joining RBI’s Loyalty Program. Furthermore, +12€ average monthly incremental revenues.

 

Definitions & Rules

Reward: An item benefit that can be redeemed in exchange for points. Follows the redemption flow: can be redeemed from the list view or directly from the cart

Offer: A discount on the order or item. Can take the form of a discounted bundle, cheaper item, order-level % discount, or order-level $ off

Bonus Points Promotion: Additional points awarded for fulfilling some criteria. Can take the form of +points, or an order-level points multiplier

Systemwide / Global: All users who meet the rules are eligible for the benefit

Personalized: The user must be assigned the benefit (via personalization engine or Braze)

Challenge / Locked: Rules are evaluated over a period of time, as opposed to being evaluated at this point in time. ie: Visit 3 times this month in order to unlock this benefit

 

Shared Rules - these rule types can be utilized across offers, promos, and rewards:

  • Between Dates: Incentive will not show on the UI or apply if current date is outside of the dates specified

    • Evaluated in local time

  • Day of the Week: Incentive will not show on the UI or apply if current calendar day is outside of the weekdays specified (M/T/W/Th/F/Sa/Su)

    • Evaluated in local time

    • Multiple selections will act like an 'or' - ie: must be a Wednesday or a Sunday

  • Between Times: Incentive will not show on the UI or apply if current date is outside of the dates specified

    • Evaluated in local time

    • Evaluation is inclusive of the times listed

  • Cart Requirement: Checks all items added to cart, and if they match the cart requirement, incentive is valid

    • All items within the rule are treated like an ‘OR’ ie: must purchase a coke or a sprite

    • Can only list items and/or combos here

  • Redemption Limit: Set the number of times the user may redeem the incentive

    • Can be bound by a time period, but doesn’t have to be

    • Offers: for all offers, this rule defaults to “1 redemption in the lifetime” if not configured

  • User Created: Check’s user create date in the loyalty system

    • Often used in conjunction with an end date: ie if user was created between March 1st and March 30th, they are eligible for this special sign up reward

  • Subtotal Requirement: If user’s purchase is over this threshold, they are eligible for the benefit

    • Specified in cents, not dollars

    • ie: set 500 in Sanity == $5.00 requirement

  • ServiceMode Requirement: User must order via this servicemode in order to redeem benefit

    • Delivery

    • Takeout, Dine In, Drive Thru, Curbside (Pickup)

      • NOTE: With COVID, the team implemented feature that defaults all ‘pickup’ orders to Drive-Thru. Because of this, if you are setting an incentive to have a servicemode ruleset, you should select ALL pickup servicemodes, or NO pickup servicemodes

  • Restaurant Group Requirement: User must order at a specified restaurant in order to redeem the benefit

    • Restaurant groups also created in Sanity, can be uploaded via CSV process

  • Payment Method: User must pay with a given card type in order to redeem offer

    • Note - evaluation happens at payment, so you should use this rule sparingly to avoid user frustration so close to the sale

  • Cool Down if user has redeemed this particular incentive in the last n seconds, they are not eligible to redeem again

  • Transaction Count The incentive is available to the user only if their transaction count is…

    • ON - on this transaction only

    • BETWEEN - between your x-y transactions

    • EVERY - on every multiple transaction

    • NOTE: Counts total loyalty transactions, not total transactions

 

Rewards only Rules

  • Loyalty Points: Number of points to spend on the reward

    • This is REQUIRED on all rewards

  • First-Order-Only: The reward will only be eligible to be redeemed on the user’s first loyalty transaction

 

Offers only Rules

  • Stackable: This particular offer can exist alongside a second offer in the cart

    • Note: The default is only one offer per cart

Promos only Rules

  • Birthday Multiplier: Logic to check user’s birthday on every transaction.

    • If duration is set to month, month of current day must match birthday month

    • If duration is set to week, birthday must fall in the current calendar week (Sunday-Saturday)

    • If duration is set to day, birthday must be today

 

Guest flow

  1. Guest will navigate to the rewards section within the App

  2. Guest will find a reward they like and click into it

  3. Guest will now see two options

    1. Option 1: Add to Mobile Order (same flow for mobile ordering today)

    2. Option 2: Redeem at Restaurant

  4. If the guest chooses to Redeem at Restaurant

  5. Guest will see toast notification confirming they have a saved reward to use in-restaurant

  6. Guest will be at the order point and inform the restaurant team member that they want to redeem loyalty rewards

  7. Guest will click redeem and be presented with a 6-digit code on another screen (second image)

  8. The restaurant team member will enter the code on the Point of Sale

  9. The guest will receive a success message once rewards are applied on POS

 

UX/UI screenshots & User Flow

Loyalty User Flow in the Web/App

 

Burger King UX/UI for not signed in scenario

 

Popeyes UX/UI for not signed in scenario

 

Burger King UX/UI for Rewards scenario

 

Popeyes UX/UI for Rewards scenario

 

Burger King UX/UI for Rewards during ordering scenario

 

Popeyes UX/UI for Rewards during ordering scenario

 

Content Management System

Sanity is the Centralized Content Management System that RBI uses. It holds all restaurant information, including service modes, coordinates, opening hours and enabled services, as well as all menu information, including combos and coupons.

A Centralized Content Management System means that all content for all channels can be managed through one CMS. For example, if you’d like to change the description of one of your menu items, you log into the CMS and change it once for all the channels - website, app and kiosk. All menu items, marketing tiles, coupons, static pages, etc. live in the same place and only need to be configured once.

In a nutshell, you can customize your entire Website, App or Kiosk in this platform.

Furthermore, RBI has a Knowledge Base for FZ’s to learn how to use the CMS platform at their own pace.

 

Deployment

Deployment of Loyalty has 2 main workstreams:

  • Digital Loyalty - deployed across digital channels (Mobile ordering)

    • FZ Approval of Program

    • RBI Tech Loyalty Set Up

    • Legal compliance (T&C)

    • Basic customer service

    • Soft Launch

    • Data visibility & Profitability Tracking

    • Instant Rewards

  • In-Store Loyalty - deployed across physical channels (Cashier, Kiosks)

    • App / POS Integration

    • Loyalty / POS integration

    • Loyalty Kiosks Integration + Scanners

    • Marketing Materials (POP) & Media Strategy

    • Advanced customer service

    • Crew Training & Incentives

    • Media Launch

CRM is a key element to increase the user base engagement and retention

  • CRM Tools Selection

  • CRM Tech Tools Set Up & Integration

  • CRM Strategy & Content Set Up

  • CRM Dashboard & Analytics 

  • Deploy CRM Strategy

 

Maintenance

Maintenance key priorities focus on:

  • Loyalty (Digital & In-store):

    • Ongoing Profitability Tracking

    • Loyalty Events & Activations

    • Program Enhancements

CRM testing and tools to be used to improve the loyalty program:

  • A/B testing & Optimization

  • Segmentation

  • Personalized Offers / Coupons

  • Ad Hoc Campaigns

  • New Journeys Deployment (points expiry)

 

Team Structure

In order to support Loyalty Deployment and Maintenance, a dedicated team is needed. Across EMEA, the most common team structure is FZ Internal Team & External Agency support:

  • FZ Internal Team

    • Digital Lead

      • Loyalty Lead

      • CRM Lead

  • External Agency

    • Designer

    • Front End Developer

    • Back End Developer

    • Database Developer

    • Campaign Developed

    • Content Project Manager

    • Deployment Project Manager

    • CRM Strategist