8 minute read
POS AND OP TECH: PINTS MEAN POINTS
Pints mean points
Molly Nicholas explores the rise of loyalty programs in pubs, and the evolution it represents in the way operators engage with patrons.
AS CONSUMER expectations evolve, patrons are seeking personalised experiences and tangible rewards for their patronage, and the pub industry is seeing a significant shift towards loyalty programs and apps.
Driven by value-conscious customers and modern technological solutions, loyalty systems are being adopted as a way of offering meaningful incentives, and for pub operators, the benefits extend beyond customer engagement, with the ability to capture first-party data, track sales trends, enhance operational efficiencies and much more.
In August, Endeavour Group announced the launch of its loyalty platform for pub-goers, pub+, reaching more than 350 ALH Hotels nationally and rewarding guests for visits using a points-based system redeemable for discounts in-venue.
Unlocking greater rewards and enhanced experiences, Endeavour Group managing director and CEO Steve Donohue expects pub+ to drive repeat visits and ensure ALH Hotels venues remain a destination of choice.
“In a tough macroeconomic environment, rewarding loyal customers and guests is the name of the game. Australians are looking for value and they want to be recognised for their commitment to our brands and pubs,” he stated.
Unlocking customer loyalty
By leveraging loyalty programs, pubs can create a sense of value and recognition for frequent visitors, and Melbourne-based hospitality group Francis Venues is one of many to get on board the trend. Launching in December last year, digital loyalty program Frisbie Rewards replaces physical members cards and allows better customer engagement.
Almost a year in, David Henshall, chief operations officer at Francis Venues, is pleased with the progress, noting customers especially enjoy watching their points and savings rise in the app.
“We’re excited by what we’re seeing so far, there’s been an incredible uptake on app downloads and member sign ups, and some fantastic feedback from both staff and customers that it’s not only aesthetically pleasing but there’s ease of functionality for all ages, which is really important to us,” he stated.
Recently we successfully ran a food promotion across all venues and were able to see the sales of members versus non-members; this really helps us as a company quantify the effectiveness of the promotion, examine how members react to price drive promotions, and insight into what strategies we need to focus on next time.
David Henshall, COO, Francis Venues
Since 2020, the Applejack Loyalty App has enhanced Applejack Hospitality’s customer engagement and created synergy between venues, allowing customers to earn and redeem rewards at any location, with pub usage leading the charge.
Alexandra Barron, group marketing manager, praises the flexibility of the app and its crossvenue promotion capabilities, saying users are encouraged to seamlessly explore the group’s mixture of venue formats, which includes the Taphouse and Forrester’s pubs in Sydney.
“Through targeted push notifications, we keep our entire user base informed about various promotions and events, from pub trivia nights to bar happy hours, ensuring a dynamic and engaging experience across all Applejack venues,” she explained.
While loyalty programs can provide a direct line of communication to customers, they also capture valuable first-party marketing data. For Applejack, data that identifies purchasing habits is integrated into CRM systems, allowing for personalised promotions.
“This data enables us to implement targeted marketing strategies, effectively converting users into loyal patrons,” added Barron.
“By analysing purchase patterns, such as frequent beer buyers or happy hour frequenters, we can tailor promotions to individual preferences, sending personalised notifications about relevant offers and specials. This data-driven approach allows us to enhance customer engagement and maximise the effectiveness of our marketing efforts.”
For ALH Hotels, pub+ is capturing equally valuable data, taking its expertise from Endeavour Group’s successful MyDan’s program, which now has 5.4 million active members and a scan rate above 80 per cent.
Since the launch of pub+, data shows that ALH customers complete between two and three transactions during their pub visits, and the group hopes to drive an increase through member-exclusive deals across multiple transactions.
“Our extensive experience with MyDan’s shows that loyalty leads to more visits and higher average spends, and that’s our goal with pub+. We want to drive greater engagement with our guests while delivering a regular value-for-money experience,” says Donohue.
Streamlining your services
While these features create an attractive proposition for customers, they can also be utilised to the operators’ advantage. Real-time offers and dynamic pricing can be used to drive traffic during slower periods, strategically boost sales and clear inventory, while integration with other systems can streamline operations.
According to Barron, promotional pricing is most effective when used in alignment with calendar events and marketing campaigns, one example being the annual SoCal Taco & Tequila Fiesta which incentivises app downloads by pushing exclusive Margarita deals to users.
“This strategic approach allows us to effectively move stock, boost engagement, and provide tailored offers that resonate with our customers’ preferences and current events,” she explained. Additionally, data gathered from loyalty systems can be used to evaluate the success of such promotions with tangible data.
Henshall explained: “Recently we successfully ran a food promotion across all venues and were able to see the sales of members versus nonmembers; this really helps us as a company quantify the effectiveness of the promotion, examine how members react to price drive promotions, and insight into what strategies we need to focus on next time.”
Another important component of Francis Venues’ Frisbie Rewards app is its ability to connect to other third-party applications. Based on the Bepoz MyPlace app, Henshall says Frisbie Rewards is already integrated with the group’s other operating systems.
“We rolled out YourOrder online ordering at the same time, which is the Bepoz online ordering system, meaning customers can use their points at the table while ordering from the QR, they don’t have to join the queue at the counter to use them like in the past. Obee, our booking platform, is also set up on the app, allowing customers to book easily from the palm of their hand.”
ALH Hotels has integrated its customer facing platforms and backend systems to support pub+, and Applejack Hospitality is also enjoying a streamlined operating system.
“The Applejack App has seen amazing results, particularly in our pubs where the order-to-table feature seamlessly integrates with the app experience, allowing easier customer engagement and downloads,” added Barron.
Ensuring a seamless transition
As with most technology, adopting new platforms isn’t without its hiccups, but a staged rollout has been the key to success for Francis Venues.
Frisbie Rewards first reached the Dingley Hotel in December 2023 as a test site, hitting the ground running with a launch party to engage customers. The staggered rollout that followed allowed the group to tweak the app and its capabilities before onboarding remaining venues.
In a tough macroeconomic environment, rewarding loyal customers and guests is the name of the game. Australians are looking for value and they want to be recognised for their commitment to our brands and pubs.
Steve Donohue, CEO, Endeavour Group
According to Henshall, staff buy-in was crucial to a seamless transition to digital, with employees encouraged to trial the app themselves and experience it just as customers would.
“February 2024 was a big month for us, we rolled out seven other venues with all the same bells and whistles, ensuring staff knew how to sign customers up, what the functionalities were, how to troubleshoot and who to contact if they had any issues. This approach ensured that the first-time customer sign up experience was an enjoyable one, as any questions could be answered straight away and guidance was readily available,” he explained.
Similarly, Applejack Hospitality has implemented a strong support system for the Applejack Loyalty App to ensure a positive user experience across all venues.
Barron says: “Detailed training guidelines are integrated into our venue teams operations, with manager inductions and staff training. A dedicated app support team addresses customer issues promptly, complemented by our marketing team’s readiness to assist.”
Looking to the future of the industry, Henshall sees Frisbie Rewards being a crucial element of the group’s operations as it acquires more hotels.
“We’re still in the first year of the app, we’re learning what customers do and don’t want, how many push notifications work and what deals will keep customers coming back for more. It’s an exciting project for Francis Venues and we look forward to delivering an industry best experience for our customers and excited to see what’s next in this space.”
As pubs embrace technology to enhance the customer experience, loyalty programs and personalisation apps are essential tools for staying competitive in an evolving market. Not only do these systems meet modern consumer demands for value and personalisation, they foster long-term customer relationships, optimise operations and drive repeat business.
