Shaping the Future of QSR Loyalty: Exclusive Interview with Como

Loyalty programs have become a crucial strategy for Quick-Service Restaurants (QSRs) to engage customers, boost retention, and drive repeat business. To shed light on how these systems are transforming the fast-food industry, we’re excited to bring you an exclusive interview with Ruben Recio, VP Business Development EMEA at Como, one of the leading providers of loyalty solutions. We’ll explore how data-driven insights, personalized rewards, and seamless digital experiences are shaping the future of customer loyalty in QSRs.

To begin Ruben, could you offer some insights into the latest trends shaping loyalty programs, particularly designed for Quick-Service Restaurants?

Loyalty programs in Quick Service Restaurants (QSRs) are evolving rapidly, driven by technology, consumer preferences, and competitive dynamics. Some key trends I see are personalization to enable QSRs to leverage data analytics to tailor rewards and communications based on individual customer preferences and behaviors. Mobile integration that appears with the rise of mobile ordering and payment, many loyalty programs have become app-centric and allow customers to easily track points, receive push notifications for rewards, and access exclusive deal. Many QSRs are also using gamification and tiered rewards to boost engagement, motivating customers to spend more and visit frequently to unlock exclusive benefits,.

These trends reflect a shift towards more engaging, personalized, and value-driven loyalty programs that cater to modern consumer expectations. QSRs that embrace these changes are likely to foster stronger customer loyalty and improve their competitive edge.

From your perspective, what innovative features or technologies do you see in QSR loyalty programs, and how do they impact customer engagement?

The use of AI and Machine Learning to analyze customer data to predict preferences and behaviors allows for hyper-personalized marketing, such as customized offers based on purchase history, which increases relevance and engagement. For example, in Como, we have "Comillia", a feature that brings value to our clients with just 2 clicks, set three parameters to activate "her" and let her do the rest... An AI tool capable of also monitoring its own ROI.

The customer engagement impact is huge, and it goes from increasing convenience for end-users, enhanced personalization, community building or immediate rewards and brand value.

Are there any notable examples of gamification or personalized rewards successfully implemented in QSR loyalty programs to improve customer retention?

Absolutely! Many QSRs have successfully done so, and I will share three examples coming from my experience in Como.

1. Increase spends. A bakery chain in the UAE created a Spin the Wheel system to incentivize some of its members to spend more. They tagged members who spent between €20 and €30 and then sent them a push notification and told them that if they visited in the next 30 days and spent at least €30, they would get to "spin the wheel" where they could get up to €500 worth of points. Of course, there would be only one winner for the biggest price. Two important aspects, in this campaign, not everyone had a price and "champions", even though they typically spent a lot more than €30, were also invited to play with a guaranteed price. The campaign was super successful, and the client had thousands of players. During that period the average spend per member went up between 15% and 20% and 5% to 10% after that.

2. Employee competition to boost registration. Employees can refer customers with an "employee code" or directly from the POS. In this case, a pub chain in the UK linked employee referrals to get app downloads with gamification. Employees were informed that if they referred more customers to download the app, they would earn a day off the following month. Meanwhile, customers who downloaded the app could spin a wheel for a chance to win various prizes. Thanks to this campaign, this client got 20K downloads in the first 2 months.

3. Gamification ais a complement to the loyalty scheme. A salad bar chain also in the UK created a loyalty scheme based on a stamp card. The latter consisted of 10 stamps (customers earned them after each visit in which they spent at least €9, up to one a day). They introduced gamification to reduce the number of days between stamps as they noticed that the loyalty accumulation was very slow up to the fifth stamp. The reward was simply too far away so it was putting customers off! They created a surprise scratchcard sent to customers when they completed the 4th stamp. Customers could win either a free drink, a free starter or a free coffee. This really helped reducing the number of days between stamps on the beginning of the customer journey.

Of course the subject of AI is unavoidable when talking about loyalty. What roles do AI and machine learning technologies play in the development of QSR loyalty programs, and what benefits do they bring?

Unavoidable indeed. In today's marketing strategies, segmentation is critical, and for now, AI is helping marketers identify and create more targeted and specific segments. I wonder if AI will make segmentation obsolete, allowing it to create personalized segments individually, maximizing the efficiency of every communication and reward. Will this be able to be determined by a machine learning AI that adapts to the market and to each customer? This kind of machine learning technology already exists to a certain level and can even shape the way a loyalty program behaves, maximizing, once again, the chances of customers visiting more often and spending more, which is the goal of any loyalty program.

Sustainability is a growing concern for many consumers. How can QSR loyalty programs be tailored to eco-friendly initiatives to attract and retain customers?

To attract and retain eco-conscious consumers, QSR loyalty programs can incorporate various eco-friendly initiatives. These include offering "green points" for sustainable choices, partnering with environmental organizations for charitable contributions, and promoting seasonal, local ingredients. Programs can incentivize recycling, reduce waste, and engage customers through digital content focused on sustainability. Additionally, providing exclusive eco-friendly merchandise, personalized offers, and rewarding community involvement through feedback can enhance the customer experience. By integrating these strategies, QSRs can cultivate loyalty among environmentally aware customers while promoting sustainable practices

And finally, with the growing importance of omnichannel experiences, how do QSR loyalty programs ensure there is a unified experience across different platforms such as in-store, online, and mobile orders?

To ensure a unified omnichannel experience in QSR loyalty programs, it's essential to implement a centralized loyalty system that tracks customer interactions across in-store, online, and mobile platforms. This includes maintaining consistent branding and user interfaces, real-time data synchronization for instant updates on points and rewards and offering flexible redemption options across channels. Personalization based on customer data should be consistent, and communication should be unified through notifications and messaging. Additionally, training staff to assist with loyalty inquiries enhances customer engagement, while feedback mechanisms allow for continuous improvement of the loyalty experience. Together, these strategies create a seamless and satisfying customer journey across all platforms