4 Ways to Hyper-Personalize the Guest Experience The Power of Individual Customer Data Tech companies like Google and Amazon have grown tremendously fast precisely because they use data to determine what drives customer behavior. Amazon, for example, uses highlighted passages from a reader’s e-book to curate a recommended next read for that person to purchase. Their algorithms also predict exactly when someone needs to reorder paper towels based on past order timeframes. LevelUp, Grubhub’s development shop, brings this strategy to the restaurant industry by providing restaurants with customer data gathered from their branded channels. For example, using behavioral data, a restaurant brand may determine that customers who transact three times within one month go on to have a higher lifetime value. The brand can then intelligently create a hyper-personalized onboarding offer that gets as many customers as possible to transact three times in one month. For Customer A, this may be a free side; and for Customer B, it’s an invitation to bring a friend. Read on to see how three LevelUp partners – Bobby’s Burger Palace, Kung Fu Tea, and Dunn Brothers Coffee – craft personalized digital experiences that grow sales. Who is LevelUp? LevelUp is Grubhub’s development shop and represents one part of the Grubhub Enterprise team. We design, develop, and power branded app and web experiences for hundreds of enterprise restaurant brands. Our restaurant partners can also take advantage of all Grubhub marketplace has to offer, including: 21+ million diners Delivery coverage in 2,400 cities Partnerships with 140,000+ restaurants. www.thelevelup.com ORDER Bobby’s Burger Palace Uses Data to Inform Decisions and Increase ROI The Goal Infamous chef Bobby Flay founded Bobby’s Burger Palace (BBP), which serves over a dozen kinds of signature burgers, hand-cut fries, bold salads, and thickand-creamy milkshakes. With their digital engagement suite, BBP wanted to engage loyal fans and earn new guests with enticing rewards. The Solution BBP sought to entice guests to download their newly-launched app by providing a rich first-visit offer upon download. More specifically, they wanted to automatically drop free fries into each new guest’s account. LevelUp recommended a little testing first: let’s use data to determine what offer drives BBP’s new users to transact. To do this, BBP split their app users into segments: transactors and non-transactors. They then split nontransacting users into groups: • 45% received an email that said if they spent $15, BBP would drop free fries into their account; • 45% received an email that said if they spent $15, BBP would drop $3.50 in credit into their account; • 10% received no offer as a control group. The Results $3.50 At the end of the campaign, the LevelUp team analyzed the data and found that 62% more new app users redeemed the credit offer over the fries offer. BBP used these results to intelligently inform their first visit campaign; the brand now targets new app users by dropping credit into their accounts, which leads to an increase in customer acquisition. Not only did the data from this campaign provide actionable insights, it also drove transactions at a low cost: BBP earned $7.50 for every $1 that they spent to run the campaign. Kate, BBP’s Technical Brand Manager, helps the brand run campaigns that accomplish their unique goals. www.thelevelup.com With Informed Analytics, Kung Fu Tea Revamps their Loyalty Program The Goal Kung Fu Tea, a contemporary, fast-growing, 180+-location bubble tea brand, launched their digital engagement program to drive traffic and sales by personalizing the guest journey, rewarding loyal customers, and engaging new fans. Thanks to their thoughtful program, their app sees nearly 175% more monthly active customers per location than their competitors. One year after their app launch, Kung Fu Tea decided to examine the effectiveness of their loyalty program. They sought to revamp their visit-based program to accelerate customer progression and engagement with their app. The Solution LevelUp worked with Kung Fu Tea to define their goals using data from the first year of their digital engagement program. First, the team analyzed guest spend to define groups of customers with the highest potential to incentivize incremental spend. Through this process, they found the key points in the average Kung Fu Tea customer’s journey that were pivotal to lift them to the next spending tier. For example, 71% of customers were Dan, Kung Fu Tea’s Technical Brand Manager, works with the brand’s marketing team to refine their loyalty program, implement new initiatives, and develop effective campaigns that drive sales. spending under $100 in their first year, so Kung Fu Tea set their second loyalty tier to $100 to encourage increased and quicker spend. Once LevelUp determined the ideal spendbased tiers, the team calculated the ROI of a wide variety of rewards (free $5 drink versus a free $7 drink versus fun swag) to better understand how Kung Fu Tea could reward loyal customers while still meeting revenue goals. The Results This analysis led to the launch of Kung Fu Tea’s existing spend-based loyalty program. LevelUp helped the brand develop consistent and clear messaging for existing customers to describe how their loyalty points would transition between the old visitand new spend-based programs, as well as messaging to use for new users coming into the program for the first time. Kung Fu Tea Creates Loyal Customers with National Bubble Tea Day The marketing team at Kung Fu Tea invented National Bubble Tea Day, a one-day campaign during which the brand promoted a FREE $4 beverage for guests who downloaded the app. With a massive promotional effort on their website, blog, social media, in-store signage and more, Kung Fu Tea made National Bubble Tea Day a buzzworthy country-wide holiday. Repeat Customers and First-Time Customers Repeat Customer Orders First-Time Customer Orders # of Orders 12K 8K 4K 0 Apr 24, 2018 Date Apr 29, 2018 2,346% increase in new customer acquisition as compared to an average day in April. Number of orders was 333% higher than an average day in April. Customers that registered for the event have since transacted 21% more than other app registrants… translating to long-term revenue. www.thelevelup.com Dunn Brothers Engages Guests on Earth Day... and Every Day The Solution Around Earth Day 2018, Dunn Brothers sent out a trivia question to all app users via email. Every guest who answered the question The Goal automatically received Dunn Brothers, a 90-location coffee brand, boasts a robust digital engagement program that includes an app with order ahead, in-store payment, rewards, menus, and more. $0.50 in credit in Dunn Brothers came to LevelUp with a goal: they wanted a cost-effective, brand-centric way to engage more customers and increase transactions using their digital engagement platform. $0.50 in credit. Dunn Brothers seeks to be the coffee shop that keeps their guests energized during key holidays: Black Friday, Daylight Savings, and other “fatigue-inducing” days. Dunn Brothers and LevelUp designed a customer engagement campaign that would take advantage of this. their accounts to go towards their next purchase. Every guest that answered the question correctly received another The Results 50% of customers who answered the question correctly redeemed their reward in-store. Dunn Brothers earned $12.50 for every $1 spent on the campaign. Dunn Brothers’ consistent trivia campaigns turn participants into loyal customers. Since introducing trivia, the percentage of total app orders by repeat customers has increased 12% as compared to the previous 6 months. Caitlin, Dunn Brothers’ Technical Brand Manager, helps the coffee chain run creative campaigns that align with their goals and unique brand. www.thelevelup.com Moving forward… Restaurant brands with LevelUp-powered branded channels can get creative with promotions, use data to their advantage, and ultimately garner more loyal customers. The Grubhub Enterprise team, including LevelUp, can help your restaurant brand create a holistic digital engagement program that includes a branded app and web ordering experience, creative marketing campaigns, an industry-leading, custom loyalty and rewards program, POS-integrated and incremental delivery orders, and more -- all informed and strengthened by guest data pulled into our restaurant Dashboard. Every restaurant brand that works with us has a dedicated account manager to help them strategize and best take advantage of our technology suite. Vice President of Agency Strategy Theresa Dold, Grubhub’s Vice President of Agency Strategy, is a former Director of Product and Director of Marketing at sweetgreen, where she built the brand’s LevelUp-powered app, loyalty program, and website. Now, she assists Grubhub’s restaurant partners in building digital strategies that grow their business. Interested in working with us? Contact hello@thelevelup.com or visit www.thelevelup.com