Posts with the label Customer Service
Showing posts with label Customer Service. Show all posts
Showing posts with label Customer Service. Show all posts
Friday, November 04, 2011
How Panera Bread Uses Rewards Card to Increase Customer Loyalty & Attract Customers
Restaurants are a part of a highly competitive industry. At any given shopping center there can be several restaurants that serve similar cuisines vying for attention. For many restaurants it’s a struggle developing methods to increase customer loyalty and attract customers while still earning a profit. Therefore it’s important to use tools that help you stand out from the crowd without butchering the bottom-line.
Introducing the Panera Bread Rewards Card
The Reward Cards Loyalty Program is a deliciously clever strategy for customer retention and marketing. It’s also a great way for Panera Bread to offer a “discount” without underselling themselves. When purchasing a food item or meal, customers can get their Rewards Card swiped and earn points towards a free food item or meal. Other rewards include, "Exclusive invitations, experiential opportunities like baking with Panera bakers, preview tastings of new menu items, as well as recipes, cooking tips and surprises such as a free bakery-cafe menu item.” Although, it’s a relatively simple concept, when executed correctly, it can have a powerful affect on customer behavior such as increasing their loyalty.
The Strategy Behind the Panera Bread Rewards Card: Why it Works and How You Can Use These Techniques for Your Business
A Combination of Consistency and Element of Surprise
“MyPanera is about showing our appreciation and rewarding you in unexpected and surprising ways,” touts the website, “The more your visit, the more surprises you can get (just when you least expect them)!” Most people associate surprises with fond experiences such as birthdays, marriage proposals, holidays, etc. These events are surprises however they usually are consistent. Therefore rewarding your customers with small treats produce the same excitement and arouse similar emotions. The unpredictable yet patterned nature of the Rewards Card loyalty program keeps customers coming back for more and emotionally connected to the restaurant. Restaurant coupons in publications that are found just about anywhere somewhat resemble gift cards. They are nice but not necessarily memorable or cause the customer to feel as cherished.
An Opportunity to Advertise Products
The Rewards Card is an effective internal advertising tool because customers get the chance to try out new items. The more menu items that customers like, the likelier that customers will remain loyal to Panera Bread. That free menu item has the possibility of becoming a favorite lunch once she gets bored of her usual meal. The Rewards Card also assists in creating buzz about their products through word of mouth. For example, a customer may rave to her friends about the Fuji Apple Chicken Salad that she received as a reward. Consequently her friends may start eating at Panera Bread in order to try out the food and/or use the Rewards Card to earn delicious treats. Another friend might use the free treat for himself while treating his friend to lunch.
The MyPanera website also features recipes. If a customer uses these recipes and her friend inquires about the source that is more free advertising. The possibilities for social marketing are limitless and the Rewards Card presents the opportunities. Interesting concepts are also effective at attracting media buzz and creating more legitimacy within your industry. There are blogs that disagree with the loyalty programs and news articles about the idea. The press helps to grab the attention of potential customers and puts you in the spotlight, ahead of other restaurants.
The MyPanera website also features recipes. If a customer uses these recipes and her friend inquires about the source that is more free advertising. The possibilities for social marketing are limitless and the Rewards Card presents the opportunities. Interesting concepts are also effective at attracting media buzz and creating more legitimacy within your industry. There are blogs that disagree with the loyalty programs and news articles about the idea. The press helps to grab the attention of potential customers and puts you in the spotlight, ahead of other restaurants.
The Rewards Card loyalty program helps Panera remain distinctive from other restaurants while adding value to their brand. When you contribute coupons to publications, you are adding value to that publication’s brand as a reliable source to find discounts to restaurants. Businesses that use third-party services, such as Groupon that connect restaurant discounts or rewards to customers, miss the opportunity to interact with customers directly and subtly convey their brand. Also Groupon gets all the glory and branding from the labor of the restaurants. The result of avoiding these techniques and personally offering rewards are customers that feel as if they are part of a community. Carrying around a Panera Bread Rewards Card and having your own personalized account has a subconscious psychological effect of making you feel as if you are a member of a Panera Bread club. Moreton explains, “We have been very deliberate over the years in getting to know our customers, which has allowed us to create a highly personalized loyalty program. Panera customers are so connected to the company’s brand promise and values that they expect us to deliver something different, better. We are confident the MyPanera program will be seen as quintessential Panera in the eyes of our loyal customers and be regarded among the restaurant and retail industry’s best.” Once again you don’t want to solely focus on impersonal methods of rewarding customers. That works against your goal.
The Rewards Card encourages customer loyalty because the customer feels generously rewarded for spending their hard earned dollars at Panera Bread. The overall message is that you are valued and appreciated. Even if the customer service experience is questionable or downright frustrating, the reward can somewhat make up for the upset. I’m not an everyday customer; therefore I don’t really get that many rewards. My conclusion is that Panera Bread focuses on rewarding high volume customers. With coupons or Groupon, you can’t really choose which demographics to reward the most or target. Also with coupons or Groupon, that customer has not intentionally decided to eat at your restaurant. They are just getting that one sale or eating at which ever place is cheaper at the time; so there’s no sense of commitment or loyalty to the restaurant. Tobias Hogan of Eat, an Oyster Bar, described his disappointing experience with Groupon to Willamette Week, “It was absolutely horrible. Swarms of first-time customers (most of whom never came back again) crowded out, undercut and alienated their regulars who were paying full price. Servers got stiffed on tips. Powell even had a Groupon thrown in his face by a customer after he declined to let the man redeem the same gift certificate twice.” Corey Pein of Willameet Week explains the situation, “Nearly half the businesses using daily deals report they made no money. Customers often get their discounts and run to the next deal, without creating the loyal relationship that Groupon says can follow.”
Bill Moreton, Panera Bread CEO and president seeks to achieve the opposite effect with the Rewards Card, “MyPanera is a loyalty program done the Panera way. Our brand has always demonstrated value to be far more than price. So unlike the typical buy 10 get one free type loyalty programs, MyPanera is focused on fostering unique relationships with our customers through deeply understanding how each guest enjoys and interacts with Panera today, and new ways they might like to in the future.” Not only do you want to develop long term relationships with your customers, you also want to avoid regularly undervaluing your product.
Even customers that do not participate in the loyalty program indirectly benefit from the data that Panera Bread collects from tracking meal purchases of the participants. The headquarters can track which items are most popular and cater future additions to these preferences. This data is invaluable for gaining insight on the behavior of their customers. The MyPanera website obtains information about your birthday, location, dietary preferences, etc which can help Panera Bread improve the menu & goods to meet the needs of these various demographics.
Even customers that do not participate in the loyalty program indirectly benefit from the data that Panera Bread collects from tracking meal purchases of the participants. The headquarters can track which items are most popular and cater future additions to these preferences. This data is invaluable for gaining insight on the behavior of their customers. The MyPanera website obtains information about your birthday, location, dietary preferences, etc which can help Panera Bread improve the menu & goods to meet the needs of these various demographics.
I still believe that Groupon and old fashioned coupons have a place in marketing restaurants even with the negative effects. For example, the same article featured another business owner that was highly satisfied with the boost of customers. Even the Rewards Card has faults that I haven’t expounded on. However I wanted to highlight how you can use an innovative yet simple tool to retain your value while showing how much you value your customers.
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Sunday, August 07, 2011
What to Do Behind the Scenes to Provide Good Customer Service
How to Deliver Good Customer Service Even When There Are No Customers Around
Delivering good customer service plays a significant role in ensuring the sustainability of your business. When most people think of customer service, they imagine smiling faces and cheerful greetings. Although that's one aspect of customer service, good customer service is also executed behind the scenes, when you are not in the presence of a customer. Just because the customer is not watching you, it doesn't mean that you should forget to have their best interest in mind. Sure a customer at a restaurant would appreciate a bubbly host and attentive waiter...but they wouldn't appreciate knowing that portions of their meal were dropped on the floor.
Good customer service causes customers to feel appreciated which increases their chancing of being loyal. In order to deliver good customer service, it is necessary of managers and employees to work hard as a team to remain ethical and even sometimes sacrifice being comfortable to meet the expectations of the customers. Providing inferior customer service has negative consequences such as decreased profits for the company, a toxic workplace environment and infamous reputation that is nearly impossible to overcome.
Employ Personnel that are Kind and Have a Passion for the Industry
Obtain Opinions, Comments and Suggestions from the Customers
Develop Comprehensive Guidelines for Handling Customer Complaints
Employ Personnel that are Kind and Have a Passion for the Industry
During the interview, observe the undesirable and constructive characteristics of the interviewees' personality to see if they could a good fit for the business. Cheerful and ambitious people with a general concern for the well being of others are ideal customer service employees. Be careful for interviewees that appear bubbly but do not care about the customers or the industry. Confirm with their past employers about the candidate's experience and attitude toward the workplace. Then you will have an idea if the candidate possesses the skill set and character needed for the position. Remember that no one is perfect therefore hire someone that complements the current staff. For example you may already have staff member that are great at detecting the overall goal but are bad at paying attention to details. Therefore focus hiring someone that is meticulous even if they may not be as far sighted.
Obtain Opinions, Comments and Suggestions from the Customers
Take customer feedback into consideration and valid concerns. Modify and implement new policies to address these concerns and complaints. Encourage your employees to develop professional relationships with the customers. Then your customer can express their opinion with more ease and the employees will get to know the customer's individual needs. Reduce the barriers for communication by providing several means of contact. Create incentives for customers to provide feedback for example you can offers prize drawings for completing surveys.
Use Criticism to Enhance your Service and/or Products
Invest the time, resources and revenue needed to perfect your product or service. For example use goods without preservatives or use more updated technology. Seek expert advice at conventions and research breakthroughs within your industry that are relevant to your business. Encourage employees to use their knowledge, education and prior experiences to suggest any needed changes. Assign each employee a role in quality control. Update your skills and transfer the information to your employees through retraining. Abstain from trying to gain more profit through cheapening the products or services at the expense of the customer.
Develop Comprehensive Guidelines for Handling Customer Complaints
Give employees specific procedures for handling common customer issues. This will streamline the process to resolve issues and enable them to solve problems briskly. Study your product or service beforehand. Attempt to foresee any problems with your product or service. Then share this information with your employees so that they will be equipped with the knowledge efficiently handle the issues they may encounter. Match employees' background, experience and education with specialized complaints and problems. Customers will be relieved to speak to a qualified and knowledgeable employee. According to a study by Harris Interactive, 50 percent of customers said employees did not answer their questions and 44 percent reported they received inaccurate information. Even if you cannot get the customer's issue resolved immediately, you and your employees should be putting in the effort behind the scenes to develop a solution and then contact the customer once the problem is fixed.
Hold Employees Responsible for Their Actions
Explain to each employee his role in providing good customer service, even for employees who are behind the scenes. Give advice regularly and schedule timely performance evaluations. Refrain from being too harsh or critical. Instead, coach employees. Share effective methods for handling difficult situations with a calm and positive attitude. Reward employees who deliver exceptional customer service.
Offer Rewards to Returning Customers
Returning customers are a key component to growing profits. TeleFaction reports that 65 percent of a company's business comes from existing customers.Offer discounts, prizes and free products or services to reward customer loyalty. Give the appropriate leeway in company policies to provide flexibility for the returning customers.
Have you experienced poor customer service lately? How did you react?
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