The use of big data to drive customer behavior has been implemented by retailers and restaurants nationwide looking to increase loyalty, retention and to drive new trials.

In the webinar, How to use BIG DATA to influence customer behavior, presented by FastCasual.com and RewardMe, presenters Jun Loayza and Adam Gervin, break down the principles restaurant operators can use to incorporate the use of big data into their marketing strategies. RewardMe is a digital loyalty program for restaurants and retailers.

To successfully gather customer information, restaurant operators should offer small, quick rewards to customers rather than rewards that take more than five visits to redeem.

Small rewards earned quickly will make customers feel special, said Jun Loayza, co-founder and chief marketing officer for RewardMe.

In regard to influencing customer behavior, Loayza said there are seven principles restaurant operators should follow:

  1. Collect data from all customers so they can join the rewards program;
  2. Capture individual purchase data such as what customers are buying and how much they are spending;
  3. Do not slow down the line. Make sure a rewards program is fast and easy to sign up for;
  4. Analyze purchase patterns and behaviors;
  5. Personalize messages to individual customers;
  6. Close the redemption loop; and
  7. Up-sell at the POS.

When implementing these principles, operators should understand three components: consumer measurement, behavioral economics and game mechanics. These components also are known as social customer relations management.

Operators looking to capture customer data should avoid the use of loyalty cards, require customers to keep receipts, to enroll through their smartphone, or not provide any visibility to their rewards network, said Adam Gervin, RewardMe's co-founder and vice president of business development.

To ensure participation, operators should cast a wide net and ask for information as the rewards program and restaurant is proven to the customer.

"In order to ensure use of the product everytime, it needs to be part of the ordering process without creating any friction," Gervin said.

Gervin further explains the best ways operators can collect customer data and then how they can best analyze the data for customer rewards to drive behavior.

"The actions can be pretty much anything," Gervin said. The actions also can be part of a real-time marketing opportunity for customers who, for example, visit a location after a several-month absence

Click here to download the full webinar.

Read more about customer experience.

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