The Guest Ownership Problem
Extremely Low-fidelity understanding of who their customers are; paying extremely high fees for access to them.
Limited Customer Insight and High Fees
Data Ownership Issues: Restaurants typically do not own customer data. Consumer identity and spending information are held by third parties, limiting restaurants' access and understanding of their customers.
High Access Costs: The lack of direct data ownership leads to high fees for restaurants to access customer information, which impacts profitability.
Ineffectiveness of Current Loyalty Systems
Loyalty to Third Parties: Existing loyalty and rewards systems often promote loyalty to third-party providers instead of the restaurants.
Lack of Direct Benefits: Restaurants pay fees for customers to earn points but do not control point redemption or directly benefit from the systems.
Fragmented Data: Each loyalty program operates in isolation, leading to fragmented data and an incomplete understanding of a customer's overall value.
The Need for a Coalition Approach
Comprehensive Customer View: A coalition approach, where multiple players collaborate, can provide a holistic view of customer activity and lifetime value (LTV).
Enhanced Connectivity and Revenue Growth: This approach would improve restaurants' ability to connect with guests, measure LTV, and drive revenue growth more effectively.
By adopting a coalition approach, restaurants can overcome the limitations of current loyalty systems, gain better insights into their customers, and improve profitability through more effective engagement and data utilization.
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