Using Your Database forOrganizational Excellence: Loyalty,       Satisfaction, and Retention                              ...
• Well known as leader in fine dining steak category• Challenges/Opportunities:   – Keep loyal guests   – Engage those who...
Who is CAC Group
Marketing Database
Fact Base           Raw Data                              Data                      Knowledge Engine:                     ...
Behavioral Segmentation     F-    M                                                 F-     M          Morton’s Fanatics   ...
Marketing Opportunities
How we have marketed•   GRM•   Loyalty•   Prospecting•   Event•   Social
Versioning Works                – Food and Drink Segmentation drives more engagement with marketing efforts               ...
Our marketing reality• Most guests come once for a special occasion and never return  (over 70%)                  Acquisit...
The Future of Guest Relationship             Marketing (GRM)• Proactively deliver the right message to the right guest at ...
GRM in Action           Illustrative
Guest Satisfaction
Why is Guest Satisfaction                Important?                                                                       ...
Our ApproachChannel– Move from receipt to email– Build trigger emailSurvey– From 30 questions to 10– LINKED TO GUEST INFOR...
Building The Link: To Email
New Instrument
Multi-Channel      Move beyond internal surveys      Incorporate social ratings from      public sources      Incorporate ...
ResultsNumber of survey responses, per month:              New Process                             1,500-2,500            ...
ReportingTracking our progress…•   Portal•   Dashboard•   Problem Resolution•   Impact of Transformation
Leveraging Guest Satisfaction
What We’ve LearnedWith significant sample size, we have:1. Quantified the value of a “5” rating versus a “4”. This is driv...
Trends• The Morton’s guest remains loyal and engaged. However, the  scores have dipped in the most recent quarters.   – Tr...
Trends• Some great news underneath the surface:   – Our changes were showing a positive effect on our first time guest – t...
Other LearningsWe learned what makes a   We assess new menu items:satisfied guest:
Summary•   Today’s marketing and business environment is challenging:     – Continued consumer uncertainty     – M&A impac...
Thank you!
Using Your Database for Organizational Excellence: Loyalty, Satisfaction, and Retention
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Using Your Database for Organizational Excellence: Loyalty, Satisfaction, and Retention

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Using Your Database for Organizational Excellence: Loyalty, Satisfaction, and Retention

  1. 1. Using Your Database forOrganizational Excellence: Loyalty, Satisfaction, and Retention at: Kris Guthrie, Brad Rukstales Vice President, Marketing President and CEO
  2. 2. • Well known as leader in fine dining steak category• Challenges/Opportunities: – Keep loyal guests – Engage those who hadn’t been in – Entice new brand ambassadors
  3. 3. Who is CAC Group
  4. 4. Marketing Database
  5. 5. Fact Base Raw Data Data Knowledge Engine: Integration Analytic Database Transaction Detail POS Customer SummaryTransactions National Cross Channel Customer Campaign HistoryPartial name Accounts Consolidation Segments Householding Model Scores Check # / $ External Data Integration Selection Rules CustomerConnect Optimization Loyalty Database With a customer / household Name A mix of internal and algorithm built, all behavioral data Address external data sources available was summarized for Email/Phone combine to build a analysis cross-location, Reservation customer-level System Consolidated view Online databaseTransactions Timestamps Of the Guest Relationship Email Phone
  6. 6. Behavioral Segmentation F- M F- M Morton’s Fanatics Big Ticket Primes• High frequency, high value guests • Limited visits, but large checks when do visit• Many better than VIPs • Huge opportunity if they come back• 21.3% of Guests / 51.0% of revenue • 17.2% of Guests / 27.4% of revenue R- F- M R- F- M Intriguing Appetizers Casual Samplers• New guests or recent guest with moderate • Low value guests check – relationship undetermined • Either new, bar guests or older one-time diners• Represent future Fanatics…or Casual Samplers • 38.1% of Guests / 12.1% of revenue• 23.4% of Guests / 9.5% of revenue
  7. 7. Marketing Opportunities
  8. 8. How we have marketed• GRM• Loyalty• Prospecting• Event• Social
  9. 9. Versioning Works – Food and Drink Segmentation drives more engagement with marketing efforts through versioned creative – Targeted creative generated improved open/click rates over control Targeted versions exceed national benchmark * of open rates Higher-end Steaks (focus on upgrades) Upper-income, Price- elite sensitive guests National Average Morton’s Control Average * Q3 2011 North America Email Trends and Benchmarks Results, December, 2011
  10. 10. Our marketing reality• Most guests come once for a special occasion and never return (over 70%) Acquisition Retention
  11. 11. The Future of Guest Relationship Marketing (GRM)• Proactively deliver the right message to the right guest at the right time to profitably grow relationships and deliver incremental sales. Our tools: Personas: insights into lifestyle, lifestage, and wealth for versioning communications Stage of relationship to Historical visit and spending understand mindset detail, predictive modeling to and level of brand predict and anticipate future engagement activity, text mining to uncover triggers
  12. 12. GRM in Action Illustrative
  13. 13. Guest Satisfaction
  14. 14. Why is Guest Satisfaction Important? Future Spend by Segment $600 $500• Satisfied guests (5 star) are 2 to 6 $400 times more valuable than less $300 $516 $200 satisfied guests. $100 $276 $25 $66 $40 $4 $0• Landry’s was changing the Morton’s OSAT 5 VIPs OSAT 4 OSAT 5 OSAT 4 Mortons Fanatics OSAT 5 Others OSAT 4 experience and needed to • Location-level problems understand the impact: and issues can be – Updated music, lose the tuxedos identified and addressed: – New menu items – Systemic – Store design – Individual problem• Our Guest Satisfaction system resolution allows us to measure the impact.• We could hear from our customers directly as we rolled out changes.
  15. 15. Our ApproachChannel– Move from receipt to email– Build trigger emailSurvey– From 30 questions to 10– LINKED TO GUEST INFORMATIONReporting– From quarterly to real-time– PortalInsight
  16. 16. Building The Link: To Email
  17. 17. New Instrument
  18. 18. Multi-Channel Move beyond internal surveys Incorporate social ratings from public sources Incorporate competitors’ ratings at a local level for comparison
  19. 19. ResultsNumber of survey responses, per month: New Process 1,500-2,500 Other sources 2,000-3,000 30-50 2009 2012
  20. 20. ReportingTracking our progress…• Portal• Dashboard• Problem Resolution• Impact of Transformation
  21. 21. Leveraging Guest Satisfaction
  22. 22. What We’ve LearnedWith significant sample size, we have:1. Quantified the value of a “5” rating versus a “4”. This is driving organizational change and management of operations.2. Statistically modeled what aspects of delivery most lead to satisfaction (service, wait time, food quality, etc.) Future Spend by Segment $600 $500 $400 $300 $516 $200 $276 $100 $66 $25 $40 $4 $0 OSAT 5 OSAT 4 OSAT 5 OSAT 4 OSAT 5 OSAT 4 VIPs Mortons Fanatics Others
  23. 23. Trends• The Morton’s guest remains loyal and engaged. However, the scores have dipped in the most recent quarters. – Transformation: what we are undertaking is leading to instability in the short term – This is due to: • Staff acclimating to the new menu items • Shift in service styles • Location redesigns • Our guests experiencing a “new” Morton’s
  24. 24. Trends• Some great news underneath the surface: – Our changes were showing a positive effect on our first time guest – those who have never experienced Morton’s before. – Our core guest still has challenges, so we are increasing our communication about the changes to our most valued guests. Likelihood to Return: New vs. Loyals 2010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012-Q2 Satisfaction: Loyals Satisfaction: New Returning: Loyals Returning: New
  25. 25. Other LearningsWe learned what makes a We assess new menu items:satisfied guest:
  26. 26. Summary• Today’s marketing and business environment is challenging: – Continued consumer uncertainty – M&A impacts companies – Technological innovation• More data and tools than ever before to provide perspective and guide decision- making• We’ve reviewed a meaningful example of capturing and using intimate insights: – Behaviors (segmentation, targeting) – Attitudes (satisfaction, intention) – Needs (food / beverage preferences, demographics)• As well as the impact they have: – Location important – CRM communications – Transformational guidance (menu, service, ambiance)• This can be implemented in your organization as well!
  27. 27. Thank you!

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