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