ATTRACTING NEW CUSTOMERS AND CREATING GREATER LOYALTY - IS WHAT'S ON THE MENU FOR QUICK SERVE RESTAURANTS - HubSpot
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PCH QSR HABITS AND DEMOGRAPHICS SURVEY
RESULTS (OCTOBER 2018)
ATTRACTING NEW
CUSTOMERS AND CREATING
GREATER LOYALTY
IS WHAT’S ON THE MENU FOR
QUICK SERVE RESTAURANTS
MEDIA.PCH.COM
50 SURVEY
PCH QSR HABITS AND DEMOGRAPHICS
%
RESULTS (OCTOBER 2018) 44%
EXECUTIVE SUMMARY
The competition between quick serve restaurant (QSR) brands to
keep their base intact and to attract new customers is fierce and
only increasing in competitiveness according to a new report from
19% 19% Publishers Clearing House.
15%
11 10% 12members of its
% %
10more
Based on a survey of % 10 % 2,600 registered
than
online community, PCH shows that in the world of QSRs, customer
loyalty often extends only as far as the next incentive or reward.
LOYALTY CONTEST RECEIVING SEEING TV
REWARDS COUPONS brands are
Competing PROMOTION
going to great lengths to capture and keep
new customers and loyalty programs, branded apps and financial
Female Male
offers are at the heart of their strategy.
Data shows that customers are willing to try new brands when they
receive a compelling offer and it’s a constant game of one-upmanship
among QSRs to bring the most attractive incentives to market.
For QSRs, the ability to attract and retain customers has become as
much about providing the right level and type of incentive as it is
delivering a quality product.
16%
QSR INCENTIVES: WHAT’S WORKING 24% 25%
Attracting and retaining customers is a key objective for all QSR brands and many of them have adopted programs to
encourage frequent usage. Primary among them is the creation of a restaurant app that can offer all sorts of incentives to
reward consumer participation.
Our researchPAPA
showed JOHN’S
that receiving coupons LITTLE
and savingsCAESARS
was the number one driver forPIZZA HUT(exactly 50 percent)
both women
and men (45 percent) to use an app. Loyalty rewards was next with a nearly identical mark of 30 percent for both women
and men. Contests and sweepstakes and the ability to pay through the app were third and fourth, respectively.
This tells us that if QSRs make it easy for their customers and incentivize them along the way, they are more likely to retain
them as loyal customers.
50%
45%
FEATURES DESIRED
IN FAVORITE
RESTAURANT’S APP
29% 30
%
11% 13%
8% 9% 2% 2%
ABILITY TO PAY CONTEST AND COUPONS AND LOYALTY AND SOCIAL SHARING
SWEEPSTAKES SAVINGS REWARDS
Female Male
MEDIA.PCH.COM | 1
PCH QSR HABITS AND DEMOGRAPHICS SURVEY
RESULTS (OCTOBER 2018)
INCENTIVES ARE A TWO-WAY STREET
Incentives work. That is why competing QSRs are also employing
incentives and rewards as a strategy to lure new customers to their
restaurants and away from the competition.
Our research showed that the incentive of a coupon is the leading driver
for a consumer to try a new restaurant. Fifty percent of women and 44
percent of men indicated that they would be willing to try someplace
new if a financial reward was offered.
Highlighting the power of loyalty reward programs, both 19 percent of
men and women said a loyalty program would be an incentive for them
to try a new QSR. Contests were third with 11 percent of women and 15
percent of men.
These findings confirm that savings, incentives and the ability to win are
the clear drivers in attracting new customers.
Promotions and TV advertisements were a distant fourth and fifth
respectively highlighting the fact that customers respond to monetary
incentives and rewards far better than advertisements.
DRIVERS OF TRYING
A NEW RESTAURANT 50%
44%
19% 19%
15%
11% 10% 12
%
10% 10%
LOYALTY CONTEST RECEIVING SEEING TV
REWARDS COUPONS PROMOTION
Female Male
MEDIA.PCH.COM | 2
5%
4 %
PCH QSR HABITS AND DEMOGRAPHICS SURVEY 0.1% 0
RESULTS (OCTOBER 2018)
DAILY SEVERAL TIMES ONCE A WEEK COUPLE OF TIMES LESS THAN ONCE NEVER
A WEEK EACH MONTH A MONTH
IS THERE CONSUMER LOYALTY Female
WHEN IT COMES
Male TO QSRS?
Yes and no. Our data shows that consumers have a willingness to be loyal, but that they need to be incentivized for that
loyalty to stick.
Coupons and savings, loyalty options and the ability to participate in and win contests keep consumers coming back. That
is also why the competition is employing these tactics liberally to lure customers away.
Our data showed that while consumers tend towards brand preference if conditions are met, they are not shy about
frequenting other QSR options.
For example, consumers identifying as McDonald’s customers are also willing to dine at Burger King and Wendy’s.
MCDONALD’S EATERS OTHER QSR CHOICE
45% 39% 23% 19% 17%
BURGER KING WENDY’S PIZZA HUT LITTLE CAESARS DOMINO’S
50%
10 9% 4% 2%
44%
%
PAPA JOHN’S FIVE GUYS WHITE CASTLE SMASHBURGER
19% 19%
15%
11% 10% 12
%
10% 10%
In another example, Domino’s customers are willing to take their business
toLOYALTY
the competition when the right
CONTEST conditions are
RECEIVING met. Pizza Hut
SEEING TV and Little
REWARDS COUPONS PROMOTION
Caesars are nearly equal threats at 25 percent each with Papa John’s
representing a viable alternative to 16 percent
Female Male of our respondents.
DOMINOS EATERS OTHER QSR CHOICE
16% 24% 25%
PAPA JOHN’S LITTLE CAESARS PIZZA HUT
50%
45% MEDIA.PCH.COM | 3PCH QSR HABITS AND DEMOGRAPHICS SURVEY
RESULTS (OCTOBER 2018)
WHO IS GOING TO QSRS AND HOW OFTEN?
Our research showed that nearly half of men surveyed (49 percent) indicated that they eat at a QSR a minimum of once
per week. Almost 20 percent of them indicated that this takes place several times a week and slightly more than five
percent indicated that dining at a QSR is a daily occurrence.
On the flip side, approximately a quarter of both men and women eat at a QSR less than once per month. These are big
numbers and represent a substantial revenue stream. Creating programs that appeal to this audience and incentivize
them to increase their frequency of visits is the next big thing for QSR marketing. Whoever gets there first will have a
significant advantage.
HOW OFTEN DO YOU EAT AT A QSR?
30%
28%
26%
25%
23%
21%
19% 19%
5%
4%
0.1% 0.3
%
DAILY SEVERAL TIMES ONCE A WEEK COUPLE OF TIMES LESS THAN ONCE NEVER
A WEEK EACH MONTH A MONTH
Female Male
CONCLUSION
According to several QSR analysts, the fast food industry in the United States is forecasted to exceed $223
billion by 2020*.
Given the stakes, brands are wrestling with a two-part equation. How to capture a greater percentage of
market share while keeping customers loyal to the brand?
QSRs are investing heavily in programs such as incentives, apps, loyalty programs and more to attract
new customers and to ensure current customers stay loyal. This area of the market is getting increasingly
competitive.
Loyalty can no longer be taken for granted and the pressure on QSRs to retain customers now goes far
45
beyond the dining%
39
%
experience. Consumers
23
% for a commitment
are looking % 19 in return%
17
in the form of incentives as
well as the opportunity to participate in contests and sweepstakes to win additional prizes.
If QSRs are not offering these types of programs, they can be assured that the competition is and will be
using themBURGER
to lure new customers
KING WENDY’Sto their restaurants.
PIZZA HUT LITTLE CAESARS DOMINO’S
Today’s model of frequent touch points and direct access with customers, and having a good product is only
half the battle. You also need to be providing the incentives consumers are hungry for.
10% 9% 4% 2%
WANT TO LEARN MORE ABOUT
PAPA JOHN’S HOW PCH
FIVE GUYS CAN
WHITE HELPSMASHBURGER
CASTLE QSRS DRIVE CUSTOMER LOYALTY?
VISIT media.pch.com/contactus TO LEARN MORE TODAY
*Statista, www.statista.com/topics/863/fast-food MEDIA.PCH.COM | 4You can also read
