Bank Loyalty Transition
This document aids with the transition of an existing client to a Bank-Based Loyalty program as well as the transition of new clients who previously were not on Credit-Based Loyalty.
Feature Contents:
Solutions Guide
New Client Launching Bank Loyalty
As a new client that is launching Bank Loyalty, you will define your Bank Loyalty Matrix and define the Tiers that help determine the rewards.
The Bank Loyalty Roll Out Template is used to aid with the rollout of the program.
Defining your Bank Loyalty Matrix
There are three parts of Bank Loyalty that are critical to an effective and successful launch and they are as follows:
Identification of Menu Items that will be included for redeeming rewards
Determination of how the guest spend will be converted into loyalty points.
Decision on how many loyalty points the Menu Items will cost.
Step 1: Identify which menu items to include in Bank Loyalty for guests to redeem rewards.
Run an analysis on the menu item costs, the margins, the order popularity, and overall profitability.
Determine which items are the most enticing to the guest, or which items have the potential to be promoted or featured more prominently?
These metrics will provide a clear view of the most profitable menu items that your business has to offer. They will also reveal items that could benefit from promotion or items that the guest finds enticing.
The following are examples of menu items that could be offered as a promotional item (for a generic burger restaurant):
Free Tots
Free Side of French Fries
Free Milkshake
Free Burger
Step 2: Next, you will determine how the customer’s spend will be converted into points for the loyalty program. It is recommended to utilize an easy-to-understand dollar-to-points conversion practice. A few simple examples are:
$1.00 = 1 point
$1.00 = 2 points
$1.00 = 10 points
Based on the conversion rate that is chosen and how the points are distributed, your determined conversion rate will play a large role in how the redemption of rewards will occur and allow you to determine point totals for each menu item that will be included in Bank Loyalty.
Step 3: Finally, there needs to be a decision on how many points the menu items will cost in the loyalty program. The Lunchbox Team will be available to assist with this process as needed; communicate with your Onboarding Lead contact for any help required.
The following is an example of how this process could occur:
Suppose that in Step 2, it is determined that there is a 1:1 conversion (i.e., $1.00 = 1 point).
Using the generic burger restaurant example from Step 1, the conversion factor could be used in the following way:
Free Tots = 50 points
Free Side of French Fries = 75 points
Free Milkshake = 200 points
Free Burger = 500 points
Defining your Tiers
The establishment of your rewards tiers is critical in defining the new lifetime points thresholds that guests will have to achieve to build their loyalty.
NOTE: Defining tiers is an optional step in this process, as they are not needed for launching or transitioning to Bank Based Loyalty.
Why do we want to have these tiers? Having tiers will incentivize the guests that are dedicated customers, power users, and deserve to be rewarded for their loyalty to the brand.
What are the benefits of having tiers? The benefits of having tiered rewards can be utilized to empower your guests to maintain their loyalty status and incentivize them to increase their purchases for the opportunity to acquire additional rewards. The means of achieving this are defined based on your company’s price points, which can all depend on your business, revenue, price points, and so on. Being aware of these critical metrics for your business helps to determine your specific tiers and how they are presented.
Tiers are defined by the lifetime revenue generated per member. We recommend these values and categories be determined by an analysis of revenue, the popularity of items, the percentage of all menu item purchases, and so on.
Example of Tiers:
Gold Tier: $1.00 up to $499.99 = 1 point ($1 = 1 point)
Platinum Tier: $500.00 up to $999.99 = 1.5 points ($1 = 1.5 points)
Diamond Tier: $1,000.00 and beyond = 2 points ($1 = 2 points)
Design
The Lunchbox Team will provide services to design your design interface for the Rewards section; this process can generally be completed within 4 weeks.
Example of Rewards (App)
Example of Rewards (Web)
Guest Communication (Email)
The Lunchbox team will use email communications to inform the Guest(s) on important events that happen leading up to the launch of the program.
NOTE: This section is not mandatory, but Lunchbox recommends having a communication and launch plan similar to these examples. The Lunchbox Team is available to assist your company with any specialized communications for your guests to help maximize your potential with the loyalty program you develop and implement.
Three (3) weeks before launch (i.e., the loyalty program announcement), the following occurs via email communication:
Mention the Spend As You Go value offering.
Mention Points Conversion.
Mention Launch Date.
One (1) week before launch, the following occurs via email communication:
Showcase the upcoming UI updates.
Show how to use the program.
Day of launch, the following occurs via email communication:
Mention Spend As You Go value offering.
Show how to use the program.
Restaurant Communication
It is important to maintain clear communication with the Restaurant and provide information that is needed to implement the program. A One-Pager will be distributed to help your team understand the end-to-end process, how to execute your needs, and resolve any issues that you have.
Delivery of the One-Pager:
New loyalty System:
How to use off-premise for guests.
How to use on-premise for guests.
Existing Client Launching Bank Loyalty:
As an existing client that is launching Bank Loyalty, you will define your Bank Loyalty Matrix, define the Tiers that help determine the rewards, and migrate all existing loyalty to the new system.
The Bank Loyalty Roll Out Template is used to aid with the rollout of the program.
Defining your Bank Loyalty Matrix
There are three parts of Bank Loyalty that are critical to an effective and successful launch and they are as follows:
Identification of Menu Items that will be included for redeeming rewards
Determination of how the guest spend will be converted into loyalty points.
Decision on how many loyalty points the Menu Items will cost.
Step 1: Identify which menu items to include in Bank Loyalty for guests to redeem rewards.
Run an analysis on the menu food costs, the margins, the order popularity, and overall profitability.
Determine which items are the most enticing to the guest, or which items have the potential to be promoted or featured more prominently?
These metrics will provide a clear view of the most profitable menu items that your business has to offer. They will also reveal items that could benefit from promotion or items that the guest finds enticing.
The following are examples of menu items that could be offered as a promotional item (for a generic burger restaurant):
Free Tots
Free Side of French Fries
Free Milkshake
Free Burger
Step 2: Next, you will determine how the customer’s spend will be converted into points for the loyalty program. It is recommended to utilize the dollar to points conversion practices that have worked in the past. A few simple examples are:
$1.00 = 1 point
$1.00 = 2 points
$1.00 = 10 points
Based on the conversion rate that is chosen and how the points are distributed, your determined conversion rate will play a large role in how the redemption of rewards will occur and allow you to determine point totals for each menu item that will be included in Bank Loyalty.
Step 3: Finally, there needs to be a decision on how many points the menu items will cost in the loyalty program. The Lunchbox Team will be available to assist with this process as needed; reach out to the Lunchbox Team for assistance for any help required.
The following is an example of how this process could occur:
Suppose that in Step 2, it is determined that there is a 1:1 conversion (i.e., $1.00 = 1 point).
Using the generic burger restaurant example from Step 1, the conversion factor could be used in the following way:
Free Tots = 50 points
Free Side of French Fries = 75 points
Free Milkshake = 200 points
Free Burger = 500 points
Defining your Tiers
The establishment of your rewards tiers is critical in defining the new lifetime points thresholds that guests will have to achieve to build their loyalty.
NOTE: Defining tiers are an optional step in this process, as they are not needed for launching or transitioning to Bank Based Loyalty.
Why do we want to have these tiers? Having tiers will incentivize the guests that are dedicated customers, power users, and deserve to be rewarded for their loyalty to the brand.
What are the benefits of having tiers? The benefits of having tiered rewards can be utilized to empower your guests to maintain their loyalty status and incentivize them to increase their purchases for the opportunity to acquire additional rewards. The means of achieving this are defined based on your company’s price points, which can all depend on your business, revenue, price points, and so on. Being aware of these critical metrics for your business helps to determine your specific tiers and how they are presented.
Tiers are defined by the lifetime revenue generated per member. These values and categories are determined by analysis of revenue, the popularity of items, the percentage of all menu item purchases, and so on.
Example of Tiers:
Gold Tier: $1.00 up to $499.99 = 1 point ($1 = 1 point)
Platinum Tier: $500.00 up to $999.99 = 1.5 points ($1 = 1.5 points)
Diamond Tier: $1,000.00 and beyond = 2 points ($1 = 2 points)
Design
The Lunchbox Team will provide services to design your design interface for the Rewards section; this process will take 1-2 weeks to complete.
Example of Rewards (App)
Example of Rewards (Web)
Loyalty Migration
The Lunchbox Team is available to assist with your migration needs; simply contact the Lunchbox Team for assistance with any questions or concerns.
NOTE: This section is not mandatory, unless the client wants to only use Bank Loyalty and wants to fix their own Loyalty system. The Lunchbox Team is available to assist your company with any needs.
For existing clients, old Credit Loyalty or old Tier Loyalty is a different pool of points than those for Bank Loyalty. Due to this, there may be the need to define how the points work from scratch; the alternative is to create a conversion to transform the points from Credit or Tier Loyalty to Bank Loyalty.
Define your Points Multiplier:
To achieve this, determine how much money needs to be spent to earn points. (This was the same process as defined in Step 2 of the Defining your Bank Loyalty Matrix section.)
Transform Credit-Based Loyalty into Bank-Based Loyalty:
The Lunchbox Team will run script(s) that allows them to implement the conversions that are requested and required for your needs.
Once Lunchbox’s Restaurant Partners finalize the following conversions, our Lunchbox Team can perform the following conversions:
Loyalty Progress <converts to> Bank Loyalty Points
Loyalty Credits <converts to> Bank Loyalty Points
Guest Communication (Email)
The Lunchbox team will use email communications to inform the Guest(s) on important events that happen from three weeks out until the day of launch for the program.
NOTE: This section is not mandatory, but Lunchbox recommends having a communication and launch plan similar to these examples. The Lunchbox Team is available to assist your company with any specialized communications for your guests to help maximize your potential with the loyalty program you develop and implement.
Three (3) weeks before launch (i.e., the loyalty program announcement), the following occurs via email communication:
Mention the Spend As You Go value offering.
Mention Points Conversion.
Mention Launch Date.
One (1) week before launch, the following occurs via email communication:
Showcase the upcoming UI updates.
Show how to use the program.
Day of launch, the following occurs via email communication:
Mention Spend As You Go value offering.
Show how to use the program.
Restaurant Communication
It is important to maintain clear communication with the Restaurant and provide information that is needed to implement the program. A One-Pager will be distributed to help your team understand the end-to-end process, how to execute your needs, and resolve any issues that you have.
Delivery of the One-Pager:
New loyalty System:
How to use off-premise for guests.
How to use on-premise for guests.