NRF 2019: Chuck E. Cheese's Secret to Loyalty
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DEG Senior Relationship Marketing Strategist Jenn Horner details how Email Relevance and More Cheese helped launch and grow the loyalty program for Chuck E. Cheese's.
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NRF 2019: Chuck E. Cheese's Secret to Loyalty
- 1. Chuck E. Cheese’s Secret to Loyalty: jhorner@degdigital.com Jenn Horner, Senior Relationship Strategist at DEG, Linked by Isobar + Email Relevance and More Cheese
- 2. This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of product or service availability, subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services. The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, new products and services, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of any litigation, risks associated with completed and any possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report on Form 10-K for the most recent fiscal year and in our quarterly report on Form 10-Q for the most recent fiscal quarter. These documents and others containing important disclosures are available on the SEC Filings section of the Investor Information section of our Web site. Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements. Statement under the Private Securities Litigation Reform Act of 1995 Forward-Looking Statement
- 3. 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 AGENCY OVERVIEW 320A S S O C I AT E S + 224%G R O W T H , L A S T 5 Y E A R S
- 6. Importance of Loyalty 60% Bigger Basket Size 5X Share of Wallet 90% Higher Frequency
- 7. Why Are Customers Loyal? Brand Values Status/Identity Customer Experience Price Convenience + Inertia
- 10. E-Club Member Base • Large existing subscriber list • Strong engagement in email • Deep segmentation available
- 11. Email is the Backbone • Drive store traffic • Primary point of communication with customers
- 12. More Cheese Rewards Journey
- 13. Ongoing Communications • Weekly promotional emails drive • Dynamic banner placement • Recruitment efforts
- 14. Future Growth for Chuck E. Cheese Entertainment Leverage data to create more impact for members Utilize members to test more offers & benefits Further expansion into other digital channels Know Personalize Engage
Editor's Notes
- Key Message Salesforce is a publicly traded company. Customers should make buying decisions only on the products commercially available. Talk Track Before I begin, just a quick note that you should base your purchasing decisions on products and services that are currently available.
- [DEG Marketing to the Moment] We strive to use creativity, strategy, and technology to meet consumers – people – in the various moments they are experiencing and to translate and give meaning to these moments. Only when we understand why people behave in a certain way can we market to the moments those behaviors produce. They tell us what they need, we don’t tell them what they should have. Most partners can do one of these three extremely well. DEG is the rare partner that understands that it is at the intersection of creativity, strategy, and technology that it no longer becomes marketing, it becomes a service. But why digital? It’s the only medium that allows us to track human behavior in order to react, and then predict, customer behavior. A TV spot or print ad won’t tell you where your customer is in his/her journey, and it certainly won’t provide you with the context in which they are engaging with your brand. Key takeaway: What makes us a digital agency isn’t what we create (emails, websites, banner ads, etc.). What makes us a digital agency is our ability to use the data we track from everything we create to develop meaningful insights about our clients’ customers. Then we use those insights to target each individual customer not just as a persona, but with a personalized message within the context of the moment in which they are experiencing.
- [Intro to CEC] How many of you have visited a Chuck E. Cheese’s before? How many have visited within the last 18 months? Even if you’ve never been in a Chuck E. Cheese’s, you still know it for being one of the best places to have a kid’s birthday party and to spend time playing one of the hundreds of video games. The company was founded in 1977 by Nolan Bushnell, creator/founder of Atari, and it’s always considered itself at the forefront of technology within its stores. If you’ve visited recently you may have noticed that even at over 40 years young it’s still taking steps to bring each store into the future. Newly remodeled interiors, fresh menu additions, and the launch of the More Cheese Rewards program are allowing Chuck E. Cheese’s to be a leader in technology, family entertainment, and now in the digital space.
- [Games & Technology] As a company originally rooted in games and technology, Chuck E. Cheese’s is constantly looking at new ways to improve its guest experience using technology, as seen through the recent conversion to Chuck E.’s Play Pass, its fun kids game apps, and now the branded More Cheese Rewards app. The target audience of parents are always on the go, so introducing the loyalty program with a new mobile app was a great way to help moms and dads access their rewards and status at any time. Guests have always shown a strong affinity towards the brand and being able to give something back, and reward the most loyal guests while also introducing the brand to new families, was a win-win.
- [More Cheese Rewards] What’s unique about Chuck E. Cheese’s is that it provides a place for good food, entertainment, and games; and the client wanted that to reflect across the different rewards that guests can earn. Chuck E. Cheese’s was lucky in that it had a really strong E-Club member base of more than 3 million active subscribers that we were able to leverage for insights as we developed the new loyalty program. We surveyed and tested different reward types prior to fleshing out the entire program and learned what would motivate guests to download the app and keep it on their phone. The power of play is really big to us—Chuck E. Cheese’s delivers that winning experience to children like no other, so we wanted to include All You Can Play and tickets into the rewards system in the form of birthday rewards. Just by joining, guests receive a personal pizza and the frequency reward is $10 in rewards cash—giving guests the freedom to use however they like when they visit.
- [Email Backbone] The heart of any loyalty program is driving butts-in-seats and incremental visits. Knowing that the average guest visits a Chuck E. Cheese’s 2.5 times a year gave us a foundation to build on. So we built a rewards-based program that would be worth working to earn over time, while earning other rewards along the way. In the first 6 months we have already seen visit frequency pick up among loyalty members, which we believe is a result of the unique rewards they can earn by joining, visiting, referring a friend, and celebrating their child’s birthday and half birthday along the way. Because we view email as the backbone of the More Cheese Rewards program, we spent a lot of time working together with Chuck E. Cheese’s to brainstorm the best way to launch the More Cheese Rewards program, and then onboard and engage the new members. Because we were using the existing E-Club subscribers as our foundation for the program, we utilized Journey Builder to help make these journeys possible. With the native decision split tools available in Journey Builder we’re able to send people down different paths based on whether or not they are new to the program or if they’ve upgraded from their existing E-Club subscription. We then have decision splits in place to move subscribers along the appropriate path depending on their engagement with our campaigns. We have built-in validation steps asking people to click through on an email to validate their account immediately upon signup. From there we push them into an onboarding journey. The onboarding journey serves two purposes: To welcome new members to the MCR program. If they are new to the CEC file then we also send them emails that contain the standard welcome messaging. To encourage new members to visit their preferred store and use their welcome offer—a free personal pizza—before it expires. After members are onboarded, we have a number of other journeys that we’ve built into the program to continue to drive engagement at key moments in their relationship with the brand. Targeted onboarding series to validate member identity and welcome them to the More Cheese Rewards program. Journeys built in Journey Builder to support onboarding, retention, birthday campaigns, and to deliver membership rewards. Dynamic banners that populate depending on the member’s status.
- [Salesforce Platform] Currently we have four big areas that we’re currently leveraging the Salesforce platform in More Cheese Rewards. SMS via MobileConnect SMS is also a great platform for us. Texting is a very intimate, direct way of communication and to date we’ve used this exclusively for breaking news or new promotions and offers. Ad Studio Ad Studio is crucial for us in identifying audiences and segmenting our social spend on those who have already taken a particular action so that we can truly optimize our social reach through targeting. Registration via Heroku/Postgres It’s important that while many pieces are moving around from a registration page, home page, and email that the guest see all of this as one big environment. We utilize Salesforce IdP for our More Cheese Rewards registration page so guests can register for the program, reset their password and be entered into our welcome journey / promotional series in real time. Email We’ve touched on email a lot but marketing cloud is this pivot piece for all loyalty / email communication. We use MC to build and send our weekly promotional series, as well as our triggered welcome and birthday series, rewards journey, and re-engagement series emails. Pictured here is an outline of our initial Rewards Journey. This journey is intended to alert members when they have earned a new reward. When the reward is added to their membership account we send an initial email congratulating them on using their reward. Rewards are valid in their account for 90 days. Over the course of 90 days, we send periodic reminders encouraging members to visit their Preferred Location to redeem their reward.
- [Ongoing Communications] Now that we’ve launched More Cheese Rewards, we’ve been making efforts to incorporate loyalty into the communications, as well as drive greater engagement with content. We know from recent analysis that of those subscribers that are engaging frequently with our emails, they are clicking on a healthy mix of coupons and other content within the emails. We’re using loyalty to fine tune the balance of content while still keeping a focus on driving customers into the store. For example, we’ve started incorporating more content into our emails to educate moms on things she may not know about at Chuck E. Cheese’s. For instance, all the dough is made fresh daily in every restaurant and all of the vegetables are freshly cut for pizzas in store as well. We have banners in all of the emails. At the top of this email you’ll see a banner that is targeted toward driving subscribers to join More Cheese Rewards. Here is an example of banners that are shown to More Cheese Rewards members. The banner shows progress made toward a reward, and when a member has earned a reward it will show that they’ve earned it. In addition, we have incorporated regular recruitment emails to members of our E-Club list that have not yet converted to the More Cheese Rewards program, driving them to join the program.
- [Results & Future Growth] In the first 9 months, we’ve seen an uptick for intent to visit. Before loyalty, there was no true indicator in how frequently our individual guests were visiting or what they were spending. More Cheese Rewards enables us to communicate on a more personal level then we’ve ever had the ability to and the data that we’ve collected so far has driven our future loyalty plans, better email communication, and personalization of content across all channels. Since we launched More Cheese Rewards, we’ve learned a lot about customers and what they like most about Chuck E. Cheese’s. We’ve seen success towards the membership goal for the first year of launch, and have seen good growth from the E-Club list. Feedback from guests and store cast members has been positive overall, and we’re seeing that More Cheese Rewards members are visiting more frequently that the average guest who isn’t a member of the program. We see a lot of opportunity for the future of this program and we’re excited by the opportunity to dive deeper into the data that we have on the More Cheese Rewards members so we can provide them with a better overall experience. The More Cheese Rewards members are an audience we’re targeting to help us learn more and test various offers and content. And we’re excited by the opportunity that the More Cheese Rewards app gives us to connect better with the target audience on their phones during their on-the-go days. We have big plans for the rest of the year and we hope you’ll join us in one of our stores soon to see how we’ve grown.