2024 Gift Card Trend Report
Are you overlooking these 8 reasons to sell mobile-first gift cards?
When Loyalty Gets Its Wings
Overview
PDQ is a fast casual concept founded on high quality food, memorable service, and genuine hospitality. The brand offers award-winning hand-breaded chicken tenders and hand-crafted sandwiches, fresh salads, signature sauces, and shakes.
Situation
PDQ, which competes in the hot chicken sandwich market against well-established brands like Chick-Fil-A, needed a way to retain its authentic and personalized experience as its loyalty program grew. But that entailed getting to know the individual habits and preferences of every one of PDQ’s more than 350,000 loyalty members. For that, PDQ turned to Paytronix Advanced Segmentation and translated detailed data into actionable analytics. The Strategy & Analytics team worked with PDQ to develop a series of 1:1 campaigns, a winback, a visit challenge, and a surprise and delight, that led guests on a personalized journey to grow lifetime value.
1 : 1 Campaigns Generate New Revenue
15.5% Spend Lift [Visit Challenge]
Aiming to boost visit frequency across its members, PDQ segmented its members into three groups based on visit history. The brand offered each group a $10 discount for meeting a visit threshold that was incrementally higher than their average visit frequency. This personalized approach prevented cannibalizing sales from regulars and kept the challenge achievable for newer guests. The brand saw a 15.5% lift in spend following the campaign.
23% Spend Lift [Winback]
Advanced Segmentation has revolutionized PDQ’s guest retention strategy. An ongoing 1:1 winback campaign segments guests into three groups: “slowing down,” “lapsing,” and “lapsed.” Loyalty members in each group receive a different offer to incentivize them to return. Since launching, PDQ has seen a 23% lift in spend.
10% Visit Lift [Champions]
PDQ wanted to give its biggest fans a little something extra. Segmenting the top loyalty members, the brand issued a $10 reward to show its thanks. Not only did the campaign bring a 10% lift in visits, but PDQ super-fans took to social media to show off the gift to friends. A real win-win.
“Paytronix’s 1:1 capabilities have enabled us to analyze large amounts of guest data and craft personalized offers that drive engagement at every level of the MyPDQ program. By partnering with Paytronix Strategy & Analytics team, we’re able to execute incremental, revenue-driving programs, that enable us to punch above our weight.”
— Jimmy VanValkenburg, Head of Loyalty, PDQ