How Zorawar Karla & Massive Restaurants implemented a unique coalition loyalty program across its 12+ brands to improve customer loyalty & retention!
Read how Massive Restaurants increased repeat customer revenue contribution to 70% using Hashtag Loyalty.
Introduction
Post a successful exit from his maiden venture, Mr. Zorawar Kalra, the “Prince of Indian Cuisine” went on to introduce Massive Restaurants in December 2012. Massive Restaurants was established with an ambition to showcase the evolution of Indian cuisine and to help Indian food find its deserved, permanent place on the global palate. The company, led by Mr. Zorawar and mentored by none other than Mr. Jiggs Kalra, his father and the “Czar of Indian Cuisine”, developed India’s premier brands of restaurants that targeted all segments of the market. Operating under the banner of Massive Restaurants are the brands of the likes of the signature Masala Library by Jiggs Kalra, the internationally present and Michelin recognized Farzi Cafe, the unique pan-Asian bistro Pa Pa Ya, an unlimited grill and brewery concept named BBQ’d and the recently introduced and feather in the cap of Indian nightlife — Bo Tai, Younion and Hotel Shanghigh!
Objective
The aim was to implement a coalition loyalty program for all brands under the Massive Restaurants banner, so as to track the activity across each and cross-promote the brands amongst customers. Seemingly straightforward, the challenge was to introduce an integrated solution with Shawman, the existing POS system at the restaurants. Apart from that, was the task of complementing the loyalty program with real-time discounts for customers. The geographical spread of the restaurants meant remote activation of the program and training of the limitedly skilled staff. All of the above, while ensuring smooth operations for the staff and seamless experience for customers.
Solution & Impact
Exactly as required, a tier-based loyalty program that offered exclusive member privileges along with realtime discounts for customers was implemented, and it was operated via a combination of Hashtag Loyalty’s web portal and POS integrated solution. It works in a manner where new customers are recorded with relevant tags and discounts for repeat customers, members, are enabled via an OTP verified procedure.
The customer tiers have been defined as follows and the count of customers lying in each are as below:
Automated communication along with a monetary gift voucher is sent to customers as soon as they shift and upgrade to the next tier, these vouchers are valid for redemption for a time period of 3 months. Hence, further pushing the customers to visit the restaurants.
The first phase of implementation saw the introduction of the program at 21 restaurant locations by January 2019; facilitated by the Hashtag Loyalty Customer Success team in tandem with the Operations team at Massive Restaurants, onboarding was conducted remotely and smooth functioning was ensured via staff training videos, instruction and FAQ documents for later reference. To keep performance in line, regular health checks were conducted and noted via a mutual tracker that helped in planning and conducting subsequent re-training in the months of June and July.
To maximize the impact of the newly introduced program and incentivize new customers visiting the restaurants to join the loyalty program, an introductory signup discount of 10% was offered. After the introductory period, the sign-up discount was shelved and real-time discounts were available to members as benefits only. The real-time discounts for customers based on the number of guests dining at a table their redemptions recorded are as follows:
As of date the customers enrolled in the program and the leads uploaded are as follows:
It is interesting to note that the Bronze tier that makes up approximately 98% of the total customers at Massive Restaurants, contributing to roughly 84% of their revenue. What’s eye-opening is that the Silver & Gold tiers comprise of only 1.4% of total customers, yet they generate a whopping 15.5% of the total revenue at Massive Restaurants. To ensure they’re identified, kept engaged and offered privileges is absolutely essential to the success of the brand and Hashtag Loyalty enables just that!
Alternatively analyzing, we can comment that the Average Order Value of the Silver and Gold tier is 2.5x and 7.5x that of the Bronze tier. While the Average Order Value of the Gold tier itself is almost 3x that of the Silver Tier. A graphical representation of the above is as shown:
Another interesting trend we noticed is the revenue generated by repeat customers has been on a steady rise and as of January 2020, the average contribution of repeat customers to the total revenue generated per month is a mighty 51%. The M-o-M trend can be seen as below:
To ensure customers stay engaged, automated campaigns at each stage of their lifecycle have also been set up.
Post the successful implementation at the respective restaurants, apart from their lifecycle stage in which they automatically get segmented in, the customers were further tagged to create custom cohorts — so as to enable hyper-specific campaigns and derive a higher RoI from them. There are 81 such micro-segments that have been created basis customer cuisine choices, alcohol preferences, previous offers redeemed, times visited and more!
A total of 660 campaigns have been executed to date via Hashtag Loyalty that helps Massive stay connected, engage with and bring back their customers.
Customer Speaks
“We’ve taken the customer experience at Massive Restaurants a notch higher by launching an exclusive member’s program for our loyal customers. Our custom requirements have been deployed at scale across all our brands by Hashtag Loyalty.”
Amrit Grewal
Head of Marketing
Massive Restaurants Pvt. Ltd
You can share your thoughts with me on anshulj@hashtagloyalty.com
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