Make No Misteak:<br />How Morton’s Uses Their Database to Drive Loyalty<br />
Our Agenda<br />Make No Misteak:<br />How Morton’s Uses Their Database to Drive Loyalty<br />Who is Morton’s The Steakhous...
Morton’s The Steakhouse<br />World’s largest Owner-Operator of upscale steakhouses<br />Premier Brand, well-established 33...
High Quality Cuisine<br />The “Best Steak Anywhere” featuring USDA Midwest, grain fed, prime aged beef<br />High quality i...
Our Strategy<br />What We Knew<br />The Morton’s Guest:  Demographics<br />Highly affluent<br />35 to 64 years old<br />HH...
Our Solutions<br />
Campaign<br />History<br />Mobile Log File<br />App Data<br />Browsing<br />Data <br />Layer<br />Guest Experience Mapping...
Launch
Catalog</li></ul>Mobile<br />Web<br />Link to<br />Purchase<br />Web<br />Properties<br />Interaction <br />Layer<br />Web...
Lifecycle Marketing
Trigger
Promotional</li></ul>Display<br /><ul><li>Version
Funnel</li></ul>Campaign<br />History<br />Social<br />Research into VOC<br /><ul><li>Needs/Expectations</li></ul>Segment ...
Expected value</li></ul>Optimization<br /><ul><li>Prioritized contacts</li></ul>Channel propensities<br />Call<br />Center...
The Solution<br />Step 1:  Compile a fact base for analysis<br />Reservation data<br />Point Of Sale data<br />VIP data<br...
Fact Base<br />Raw Data <br />Processing<br />Consolidated view<br />Of the Guest Relationship<br />National<br />Accounts...
Analyses<br />Percentage of Guests<br />Percentage of Revenue<br />
What We Learned<br />Value of our loyal guests<br />Behavioral insights were developed to classify Active Guests:  <br />G...
Applying The Learning<br />Guest Database<br />Behavioral segment scoring<br />Reporting and tracking<br />Source for mark...
Impact<br />
The Impact<br />Identify marketing opportunities<br />Before working with CAC we would mass marketing everything to everyo...
The Impact<br />Lifecycle Marketing<br />Active Guests – guests with an existing relationship <br />Acquired Guests – firs...
Morton’s The Steakhouse<br />Focus on the Fives<br />
Guest Satisfaction<br />Importance of Guest Satisfaction<br />Improve Guest Retention & Frequency<br />Increase Guest Sati...
Guest Satisfaction<br />Issues with this process:<br />Channel:  Survey invitation was at the bottom of the guests receipt...
Solution<br />Channel<br />Move from receipt to email<br />Build trigger email (show example)<br />Survey<br />From 30 que...
Building The Link: To Email<br />
New Instrument<br />
Multi-Channel<br />Move beyond internal surveys<br />Incorporate public / social ratings from public sources<br />Incorpor...
Results<br />Number of survey responses, per month:<br />1,500-2,500<br />New Process<br />Other sources<br />2,000-3,000<...
Measurements<br /> Real-Time Reporting<br />By location<br />By segment<br />By time period<br />Includes open-end comment...
What We’ve Learned<br />With significant sample size, we have:<br />Quantified the value of a “5” rating versus a “4”.  Th...
How We Use It Today<br />
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Make No Misteak: How Morton's Uses Their Database to Drive Loyalty

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Make No Misteak: How Morton's Uses Their Database to Drive Loyalty

  1. 1. Make No Misteak:<br />How Morton’s Uses Their Database to Drive Loyalty<br />
  2. 2. Our Agenda<br />Make No Misteak:<br />How Morton’s Uses Their Database to Drive Loyalty<br />Who is Morton’s The Steakhouse?<br />Strategy for Insights<br />Solution<br />Impact<br />Focus On the Fives: Guest Experience Management<br />Situation<br />Solution<br />How We Use it Today<br />Summary<br />
  3. 3. Morton’s The Steakhouse<br />World’s largest Owner-Operator of upscale steakhouses<br />Premier Brand, well-established 33 - year history<br />High quality cuisine. Consistent service and experience<br />Focus on high-end consumer, business traveler and special occasion users. (Approx. 80% expense report)<br />Strategic Marketing Programs and Experiential Events <br /><ul><li>Official Steakhouse of the PGA TOUR</li></ul>Award-winning reputation<br />
  4. 4.
  5. 5. High Quality Cuisine<br />The “Best Steak Anywhere” featuring USDA Midwest, grain fed, prime aged beef<br />High quality ingredients cooked to exacting standards<br />Broad menu appeals to many taste preferences<br />
  6. 6. Our Strategy<br />What We Knew<br />The Morton’s Guest: Demographics<br />Highly affluent<br />35 to 64 years old<br />HHI of $100,000+<br />Elite interests and activities<br />Sports: Golf, Tennis, Skiing<br />Leisure: Wine<br />Professional: Career-Oriented<br />What We Needed To Know<br />The Morton’s Guest: Behaviors<br />How often they visit<br />How much they spend<br />Guest Retention<br />Actions<br />Where/How to invest in building guest relationships<br />Expand VIP Program<br />
  7. 7. Our Solutions<br />
  8. 8. Campaign<br />History<br />Mobile Log File<br />App Data<br />Browsing<br />Data <br />Layer<br />Guest Experience Mapping<br />Appropriate communication at different touch- points (don’t mix marketing with service)<br />Idealized Interactions<br />Consistent versioning of messaging, where appropriate<br />Prioritization of outbound <br />Recognition in “always on” environments<br />Web<br />Log File<br />DM<br /><ul><li>Promotional
  9. 9. Launch
  10. 10. Catalog</li></ul>Mobile<br />Web<br />Link to<br />Purchase<br />Web<br />Properties<br />Interaction <br />Layer<br />Web<br />Click<br />Email Click<br />Through<br />Data<br />Strategy<br />Insight<br />Segmentation<br />Modeling<br />Guest <br />Experience<br />In-<br />Store<br />POS <br />Integration<br />Email<br /><ul><li>Service Message
  11. 11. Lifecycle Marketing
  12. 12. Trigger
  13. 13. Promotional</li></ul>Display<br /><ul><li>Version
  14. 14. Funnel</li></ul>Campaign<br />History<br />Social<br />Research into VOC<br /><ul><li>Needs/Expectations</li></ul>Segment Viewpoint<br />Satisfaction<br />Predict range of behaviors<br /><ul><li>Stimulus response
  15. 15. Expected value</li></ul>Optimization<br /><ul><li>Prioritized contacts</li></ul>Channel propensities<br />Call<br />Center<br />Search<br />Enabling<br />Technology<br />Data Integration<br />
  16. 16. The Solution<br />Step 1: Compile a fact base for analysis<br />Reservation data<br />Point Of Sale data<br />VIP data<br />Build householding algorithms, get more data<br />Name / Address<br />Step 2: Build Analysis<br />Value of a VIP<br />Retention statistics<br />Step 3: Build Applications<br />Database<br />VIP Expansion<br />Lifecycle Marketing<br />
  17. 17. Fact Base<br />Raw Data <br />Processing<br />Consolidated view<br />Of the Guest Relationship<br />National<br />Accounts<br />A mix of internal and external data sources combine to build a cross-location, customer-level database<br />POS Transactions<br />Partial name<br />Check # / $<br />With a customer / household algorithm built, all behavioral data available was summarized for analysis <br />Loyalty<br />Database<br />Name<br />Address<br />Email/phone<br />External Data<br />(appends)<br />Reservation<br />System<br />Timestamps<br />Email<br />phone<br />Online<br />Transactions<br />
  18. 18. Analyses<br />Percentage of Guests<br />Percentage of Revenue<br />
  19. 19. What We Learned<br />Value of our loyal guests<br />Behavioral insights were developed to classify Active Guests: <br />Guest Value and Guest Engagement<br />Guest Value results in a distribution analysis of revenue:<br />50% of revenue from 10% of guests<br />Morton’s guest portfolio epitomizes a concentrated revenue distribution<br />The Morton’s brand appeals to a niche of consumers<br />Strategy focus on CRM based approach vs. mass marketing<br />
  20. 20. Applying The Learning<br />Guest Database<br />Behavioral segment scoring<br />Reporting and tracking<br />Source for marketing programs and list<br />Promotional Targeting<br />DM/EM<br />Lifecycle marketing<br />Guest Satisfaction<br />
  21. 21. Impact<br />
  22. 22. The Impact<br />Identify marketing opportunities<br />Before working with CAC we would mass marketing everything to everyone and mass prospecting<br />Now we are taking a Guest Relationship Marketing approach to managing existing guests while simultaneously acquiring new guests<br />Communicating the right message to the right audience<br />First we had to understand the Lifecycle of a Morton’s guest:<br />Getting a potential guests attention<br />Educating them on what we had to offer<br />Turning them into a paying guest<br />Keeping them as a loyal guest<br />
  23. 23. The Impact<br />Lifecycle Marketing<br />Active Guests – guests with an existing relationship <br />Acquired Guests – first visit within the last 9 months<br />Lapsed Guests – guests who has not dined within last 2 years<br />Prospective Guests – guests whom have never visited<br />Focused Strategy and Investment differently to guests at various stages of their relationship with the brand via direct mail and email marketing<br />2009 we focused primarily on lifecycle management, and distributing our circulation to the most profitable guest groups.<br />
  24. 24. Morton’s The Steakhouse<br />Focus on the Fives<br />
  25. 25. Guest Satisfaction<br />Importance of Guest Satisfaction<br />Improve Guest Retention & Frequency<br />Increase Guest Satisfaction & Loyalty<br />Strengthen Guest & Brand Recognition<br />Competitive Advantage<br />ULTIMATELY build our business and remain THE BEST STEAKHOUSE WORLDWIDE!<br />We wanted guests to provide feedback, but wanted an unobtrusive way of asking for their feedback<br />This led to the survey invitation being printed at the bottom of the guests receipt<br />
  26. 26. Guest Satisfaction<br />Issues with this process:<br />Channel: Survey invitation was at the bottom of the guests receipt<br />Survey: Questionnaire was too long (30 questions) led to low response rate and a high abandon rate<br />Reporting: Quarterly which didn’t allow for quick action<br />All of these issues =<br />Actionable <br />Insight<br />
  27. 27. Solution<br />Channel<br />Move from receipt to email<br />Build trigger email (show example)<br />Survey<br />From 30 questions to 10<br />LINKED TO GUEST INFORMATION<br />Reporting<br />From quarterly to real-time<br />Portal<br />Insight<br />
  28. 28. Building The Link: To Email<br />
  29. 29. New Instrument<br />
  30. 30. Multi-Channel<br />Move beyond internal surveys<br />Incorporate public / social ratings from public sources<br />Incorporate competitors’ ratings at a local level for comparison<br />
  31. 31. Results<br />Number of survey responses, per month:<br />1,500-2,500<br />New Process<br />Other sources<br />2,000-3,000<br />30-50<br />2010-2011<br />2009<br />
  32. 32. Measurements<br /> Real-Time Reporting<br />By location<br />By segment<br />By time period<br />Includes open-end comments<br />
  33. 33. What We’ve Learned<br />With significant sample size, we have:<br />Quantified the value of a “5” rating versus a “4”. This is driving organizational change and management of operations.<br />Statistically modeled what aspects of delivery most lead to satisfaction (service, wait time, food quality, etc.)<br />Built loyalty scorecards for each location, each month, so they can review their results<br />
  34. 34. How We Use It Today<br />
  35. 35. How We Use It Today<br />Operational measurement<br />Actionable information that we can access on a local, national, regional and company-wide level<br />Look for trends, problems and areas of opportunity<br />Holding our General Managers accountable and making Problem Resolution a Priority<br />Data-driven Leadership<br />Prime focus of our CEO, Chris Artinian<br />Drives high quality decisions<br />Drives strategic, long term initiatives<br />Framework for operational decisions (day to day)<br />Turn data into insights<br />Turn insights into action<br />
  36. 36. Loyalty Scorecards<br />Establishing metrics and accountability down to a location level <br />
  37. 37. Competitive Benchmarking<br />We compare ourselves within each local environment<br />
  38. 38. How We Use It Today<br />Taste of Food<br />Top driver of top box Overall Satisfaction<br />Of all the survey measures, Taste has the greatest impact in differentiating a “4” experience from a “5” experience<br />Vital to our brand: Exceptional taste must be consistently delivered for every single guest on every single visit!<br />Problem Resolution<br />Target frequently heard complaints to reduce occurrence<br />Increase Attentiveness, especially for those guests experiencing a problem<br />
  39. 39. How We Use It Today<br />VIPs and Fanatic Guests<br />Our best segments account for 20% of our guests and over 50% of our revenue (VIPs are the top 1%)<br />Crucial to keep these guests happy and coming back (‘4’ experiences can cut future visits/frequency in half)<br />First-Time Diners<br />80% of guests don’t come back<br />Important to identify first-time diners and pay special attention to their questions, concerns and needs<br />Make sure first-time diners leave the restaurant excited for their next visit<br />
  40. 40. Summary<br />Build analytic fact base and analyze<br />Identify opportunities to leverage information<br />Test marketing concepts, refine<br />Push to find more ways to utilize customer information to influence decision making<br />Guest Satisfaction<br />Competitive Benchmarking<br />
  41. 41. Thank you!<br />Brad Rukstales<br />President & CEO<br />CAC Group, Inc.<br />brukstales@cac-group.com<br />(847) 805-9802<br />Patty Pleuss<br />Vice President, Marketing<br />Morton’s The Steakhouse<br />

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