STORES Magazine - May 2011 - (Page 34)

NUTS AND BOLTS / CUSTOMER REWARDS media, and there is a strong penetration of smartphone users,” he says. “These factors made it clear that we should consider a more innovative platform that is not tied to POS.” Putting the restaurant first To cater to its highly-connected clientele, Pasta Pomodoro explored location-based mobile platforms and apps like Foursquare, shopkick and Yelp, a blogging site that invites consumers to create word-of-mouth reviews of local businesses and services. None of those platforms “really put the restaurant or service first,” Janopaul says. “We wanted a partner that was focused on Pasta Pomodoro [rather than] the coupons it could deliver.” While the social media platforms weren’t the perfect fit, Janopaul did like the idea of social marketing — some- New Generation of Loyalty Smartphone app revitalizes Pasta Pomodoro’s program BY DEENA M. AMATO-McCOY W hen Matthew Janopaul heard that more than 80 percent of American consumers are unaware of the benefits that retailers’ loyalty programs offer, he completely agreed. The president and CEO of Pasta Pomodoro, a 26-unit Italian casual dining chain, called the restaurant’s loyalty program “old-fashioned,” with a process he described as “clumsy.” Eager not to fall into a loyalty “black hole” with its own customers, Pasta Pomodoro is replacing its POS-supported, card-based program with a smartphone-based concept that tracks guest frequency and rewards them for visits and recommendations. San Francisco-based Pasta Pomodoro has a loyal customer base of tech-savvy guests who visit the restaurant multiple times a month; some even dine there weekly. The company loved connecting with guests and providing real-time incentives to sustain frequent visits, but the antiquated loyalty program was making this a difficult task. “When settling the bill, guests present their loyalty card, which features their account number,” Janopaul says. 34 STORES / MAY 2011 The app connects with the smartphone’s GPS function, electronically finding all nearby restaurants that participate in the Punchh loyalty program. “If they don’t have the card, they can provide their telephone number. If they don’t provide the right number, however, it’s difficult to find them in our database, which slows the entire process.” Janopaul was ready for a modern alternative, one that fit the personality of the chain and its guests. “Our guests have a strong interest in technology and how tying the program to social media and rewarding guests for recommendations shared on sites like Facebook. From a functional perspective, Janopaul also wanted a simple program that could scale in the future, “especially as we continue to build relationships and communicate with our guests.” The company found the best of both WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - May 2011

STORES Magazine - May 2011
Editor’s Page
President’s Page
Retail People
Supply Chain
Getting Closer to Customers
Workforce Management
Customer Satisfaction
Customer Rewards
Human Resources
2011 Software Sourcebook Guide
Website Security
Divisional Update
NRF News
Point of View
Retail Industry Calendar
End Cap

STORES Magazine - May 2011