2011 06 HHF Sundrop Froyo Consumer Loyalty
2011 Customer Loyalty Trends in Self-Serve Frozen Yogurt
Bud Gunter Sugar Creek Foods Int’l Travis Priest Sundrop Mobile
Confidential & Proprietary – Do Not Forward
6/12/11
ABOUT THIS REPORT Sundrop Mobile and Sugar Creek Foods, Int’l partnered in 2010 to provide a turnkey loyalty/marketing solution to frozen yogurt shops across the country. The program is avaiable to all customers of Sugar Creek Foods offering their high-end frozen yogurt mixes. After 6 months of launching the cooperative program, the partners collaborated to study the success of the initiative. This report represents the compilation of consumer loyalty data across 10 participating shops, representing a cross section of all participants based on location, size of metro market served, and facility size.
SUNDROP MOBILE Sundrop Mobile is a mobile marketing and loyalty solutions provider. Sundrop operates an automated, “card-less” mobile loyalty program, loyalTXT, that uses a customer’s mobile number as their “loyalty card,” text messaging with email for data collection and communication, and seamlessly integrates social media and location-based services. Sundrop introduces businesses to their customers by providing the infrastructure and expertise that empowers merchants to reach their customers via mobile, email, social media, and location-based marketing — anytime. Sundrop helps businesses become mobile, social, and local. www.sundropmobile.com
SUGAR CREEK FOODS INT’L Sugar Creek Foods International, Inc. is a leader in the frozen yogurt and custom frozen soft-serve mix industry. For over 65 years Sugar Creek has pioneered development, production and marketing of frozen soft-serve dessert mixes. The Company operates a production facility in Russellville, AR which manufactures its national brand Honey Hill Farms frozen yogurt, which is real dairy and contains live active cultures. Sugar Creek offers branded and private label frozen yogurt, ice cream, frozen custard, sorbet, & smoothie mixes. Sugar Creek’s End-User customers include frozen yogurt shops, convenience stores, quality restaurants, ice cream shops, custard shops, colleges, foodservice locations, and international chains accounts. www.sugarcreekfoodsinc.com www.thehoneyhillfarms.com
Confidential & Proprietary – Do Not Forward
THE DATA 10 locations based in mid-Atlantic and Southeastern states. Time period = May 2011. General temperatures were moderate for spring. Rainfall was slightly lower than average.
AVERAGE TICKET / AVERAGE TICKET VOLUME For the study sample, the average ticket was $6.19 on 333 transactions per day. Volume on a slow day averaged approximately 200 tickets. Volume on a busy day averaged well into the 400 tickets per day with occasional 500+ ticket days.
$6.19
LOYALTY PARTICIPATION RATES Each of the sample stores had well-established check-out procedures with staff fully trained to promote the loyalty program prior to the customer tendering payment ensuring loyalty data capture. As such, the average number of transactions per day that were completed by loyalty members was 277, or fully 83% of all transactions generated. This gives strong statistical significance to the results in this report.
DAYS BETWEEN VISITS The average database was 7,699 members collected over a 6 month period. Approximately 36% of the loyal customer base visited the shop at least twice during a 3-month period.
6%
8% 21%
51%
Every 1-14 days: Monthly: Quarterly: Semi-Yearly:
6%
Confidential & Proprietary – Do Not Forward
8%
6mo+: Visited Once:
CUSTOMER LIFETIME VALUES This chart shows loyalty members broken into segments based on their average spend in the program. The top 25% of participants in the program spent more than $32.25 or more during a 6-month period.
5%
$10.75
3% 8%
$21.50
9% 21%
53%
$32.25 $43.00 $53.75 Above
FACEBOOK ENGAGEMENT The average participating store acquired 3% of its loyal customer base via “Facebook Sharing” and automated “Check-In” by existing loyalty members. The average 6month value of these loyalty customers was $29.25, putting them in the top 25% of customers ranked by value. This data demonstrates that Social Media -sourced customers are active and loyal – brand advocates.
Confidential & Proprietary – Do Not Forward
MARKETING – WHAT’S WORKING We have found the following campaigns offer above-average success for newly opening frozen yogurt operations. Obviously, there are a wide variety of marketing activities: radio, television, strong signage on street frontage, flyers, etc., but the following campaigns have shown particularly strong performance.
FACEBOOK CONTESTS The success of the contest depends on what the business is offering. Various frozen yogurt shops have seen success with Facebook contests. Whether it is giving away free frozen yogurt for a year or different kinds of prizes, Facebook contests have had a positive effect for businesses. It has not yet been tested why which type of contest works the best; therefore, one should try an assortment of contests to see which one works best for their location. Contest, such as “Enter to win free froyo for a year,” drive consumers to click through to the loyalty registration site. Part of the registration processed drives consumers to connect to the loyalty program via Facebook, allowing the program to post contest information on their Facebook walls for their friends to see. Some well-executed Facebook contests have driven 5-8% of a program’s loyalty base.
BOGO COUPONS IN SCHOOLS By offering BOGO coupons in schools to sports teams, in report cards, to honor roll students, etc. a shop can drive significant awareness and traffic to their location, particularly since the children need their parents to drive them. Once there, operators register parents for the loyalty program, capturing data for repeat marketing.
DAILY DEAL For a new operation, a daily deal can drive significant numbers of new customers; however, we encourage established operations to carefully consider their options before committing to a daily deal such as Groupon or Living Social.
Confidential & Proprietary – Do Not Forward
Bud Gunter Sugar Creek Foods Int’l Travis Priest Sundrop Mobile
Confidential & Proprietary – Do Not Forward
6/12/11
ABOUT THIS REPORT Sundrop Mobile and Sugar Creek Foods, Int’l partnered in 2010 to provide a turnkey loyalty/marketing solution to frozen yogurt shops across the country. The program is avaiable to all customers of Sugar Creek Foods offering their high-end frozen yogurt mixes. After 6 months of launching the cooperative program, the partners collaborated to study the success of the initiative. This report represents the compilation of consumer loyalty data across 10 participating shops, representing a cross section of all participants based on location, size of metro market served, and facility size.
SUNDROP MOBILE Sundrop Mobile is a mobile marketing and loyalty solutions provider. Sundrop operates an automated, “card-less” mobile loyalty program, loyalTXT, that uses a customer’s mobile number as their “loyalty card,” text messaging with email for data collection and communication, and seamlessly integrates social media and location-based services. Sundrop introduces businesses to their customers by providing the infrastructure and expertise that empowers merchants to reach their customers via mobile, email, social media, and location-based marketing — anytime. Sundrop helps businesses become mobile, social, and local. www.sundropmobile.com
SUGAR CREEK FOODS INT’L Sugar Creek Foods International, Inc. is a leader in the frozen yogurt and custom frozen soft-serve mix industry. For over 65 years Sugar Creek has pioneered development, production and marketing of frozen soft-serve dessert mixes. The Company operates a production facility in Russellville, AR which manufactures its national brand Honey Hill Farms frozen yogurt, which is real dairy and contains live active cultures. Sugar Creek offers branded and private label frozen yogurt, ice cream, frozen custard, sorbet, & smoothie mixes. Sugar Creek’s End-User customers include frozen yogurt shops, convenience stores, quality restaurants, ice cream shops, custard shops, colleges, foodservice locations, and international chains accounts. www.sugarcreekfoodsinc.com www.thehoneyhillfarms.com
Confidential & Proprietary – Do Not Forward
THE DATA 10 locations based in mid-Atlantic and Southeastern states. Time period = May 2011. General temperatures were moderate for spring. Rainfall was slightly lower than average.
AVERAGE TICKET / AVERAGE TICKET VOLUME For the study sample, the average ticket was $6.19 on 333 transactions per day. Volume on a slow day averaged approximately 200 tickets. Volume on a busy day averaged well into the 400 tickets per day with occasional 500+ ticket days.
$6.19
LOYALTY PARTICIPATION RATES Each of the sample stores had well-established check-out procedures with staff fully trained to promote the loyalty program prior to the customer tendering payment ensuring loyalty data capture. As such, the average number of transactions per day that were completed by loyalty members was 277, or fully 83% of all transactions generated. This gives strong statistical significance to the results in this report.
DAYS BETWEEN VISITS The average database was 7,699 members collected over a 6 month period. Approximately 36% of the loyal customer base visited the shop at least twice during a 3-month period.
6%
8% 21%
51%
Every 1-14 days: Monthly: Quarterly: Semi-Yearly:
6%
Confidential & Proprietary – Do Not Forward
8%
6mo+: Visited Once:
CUSTOMER LIFETIME VALUES This chart shows loyalty members broken into segments based on their average spend in the program. The top 25% of participants in the program spent more than $32.25 or more during a 6-month period.
5%
$10.75
3% 8%
$21.50
9% 21%
53%
$32.25 $43.00 $53.75 Above
FACEBOOK ENGAGEMENT The average participating store acquired 3% of its loyal customer base via “Facebook Sharing” and automated “Check-In” by existing loyalty members. The average 6month value of these loyalty customers was $29.25, putting them in the top 25% of customers ranked by value. This data demonstrates that Social Media -sourced customers are active and loyal – brand advocates.
Confidential & Proprietary – Do Not Forward
MARKETING – WHAT’S WORKING We have found the following campaigns offer above-average success for newly opening frozen yogurt operations. Obviously, there are a wide variety of marketing activities: radio, television, strong signage on street frontage, flyers, etc., but the following campaigns have shown particularly strong performance.
FACEBOOK CONTESTS The success of the contest depends on what the business is offering. Various frozen yogurt shops have seen success with Facebook contests. Whether it is giving away free frozen yogurt for a year or different kinds of prizes, Facebook contests have had a positive effect for businesses. It has not yet been tested why which type of contest works the best; therefore, one should try an assortment of contests to see which one works best for their location. Contest, such as “Enter to win free froyo for a year,” drive consumers to click through to the loyalty registration site. Part of the registration processed drives consumers to connect to the loyalty program via Facebook, allowing the program to post contest information on their Facebook walls for their friends to see. Some well-executed Facebook contests have driven 5-8% of a program’s loyalty base.
BOGO COUPONS IN SCHOOLS By offering BOGO coupons in schools to sports teams, in report cards, to honor roll students, etc. a shop can drive significant awareness and traffic to their location, particularly since the children need their parents to drive them. Once there, operators register parents for the loyalty program, capturing data for repeat marketing.
DAILY DEAL For a new operation, a daily deal can drive significant numbers of new customers; however, we encourage established operations to carefully consider their options before committing to a daily deal such as Groupon or Living Social.
Confidential & Proprietary – Do Not Forward
