Loyalty, the way forward for QSRs in 2024
Dec 29, 2023
PNN
Mumbai (Maharashtra) [India], December 29: Loyalty is what keeps the bottom-line healthy. Starbucks has always known it. In 2021, Bank of America acknowledged the power of its loyalty program by saying that the Starbucks stock, "could surge 21% as its loyalty rewards program helps defend it against growing competition."
The world has woken up to Starbucks' competitive moat; its loyalty rewards app, which has helped drive growth and fend off competition. Starbucks Rewards members drove a record 53% of U.S. company-operated revenue in 2022. Indian QSRs are embracing loyalty too. Brands like Jumboking, India's largest homegrown burger company are stepping the gas on loyalty, with almost a million sign ups within just 8 months of rolling out.
Dheeraj Gupta, Founder of Jumboking says, " When I attended the 2023 QSR Evolution Conference in Atlanta, loyalty was one of the important discussion topics. In developed markets, 75% of consumers belong to at least one loyalty program. This isn't the case in India so far. That's because we are yet to imbibe that the most important factor determining the success of any loyalty program is 'making your internal and external customers feel acknowledged'. The staff at the store has to feel empowered. It's only then that they will communicate loyalty program benefits to the customers.`
Gupta is known to undertake daily listening tours across his stores (he spends 6-8 hours a day at different Jumboking stores every week. Jumboking's loyalty program called JK Burger Rewards is an extension of his direct interactions with his customers and frontline staff.
Interestingly, a 2023 survey conducted by Salesforce, reveals that 84% of customers say that 'being treated like a person, not a number.' This is very important to winning their business. Additionally, 73% of customers are willing to switch brands if they don't feel respected by a company. This echoes with Gupta's point about 'acknowledgement.' Gupta's Jumboking is India's largest vegetarian burger brand with over 165 stores across Mumbai, Delhi and Hyderabad.
Clearly, loyalty is the way forward in 2024. Businesses that invest and value the internal and external elements are more likely to create a loyal customer base and increase repeat business.
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