The Foodservice Rewards mobile app was launched in January of 2012. As of this month, over twenty-five percent of all Foodservice Rewards code redemptions are coming through the mobile App and it continues to grow each month.
Continued growth of Mobile App…
The operator specific bi-weekly enewsletter open rates increased to over 20% in 2013…
Foodservice Rewards provides visibility and measurable results for sponsors…
In 2012, a record number of operators earned points and had more SKUs to earn from. Here’s a quick recap of major Foodservice Rewards statistics in 2012.
Sponsors – 32
Brands – 127
SKU’s – 2,951
New Operators -17,541
Redeeming Operators – 86,311
Cases Tracked – 22.5% of cases labeled were tracked or 19,361,193 total cases
Promotions – 113 resulting in an average of 12,208 incremental cases and 471% ROI
The “Leaky Bucket” analysis provides Foodservice Manufacturers with an effective measure of their retention and acquisition efforts.
Foodservice Rewards has a new measure, called the Leaky Bucket analysis that simply measures the impact of new and existing operators on a manufacturer’s growth or decline (operators and case volume).
Using the analogy of a bucket, Foodservice Rewards measures what comes into the manufacturer’s bucket (new operators), what stays in the bucket (existing, loyal operators), and what leaks out of the bucket (lost operators). The analysis includes operators that are engaged in Foodservice Rewards and compares two 12-month periods. The analysis can be done by portfolio, category, or brand.
So what? Manufacturers that understand their operator/case “leak” rate combined with their acquisition rate now have an annual benchmark from which they can more effectively measure their overall growth each year. It also re-enforces the need to protect a sponsor’s “most valuable operators” – the customers that drive most of the volume.
Average leak rate is 20% across the coalition of participating branded sponsors. Imagine how large it must be within the broader foodservice world…Guessing 30% or more!
Once again our year in review statistics and KPI’s continue to demonstrate that Foodservice Rewards is a compelling program to reach and engage Operators. Below is a review of 2011 activity and trends within Foodservice Rewards for North America.
- Sponsors and Products: There were 29 active Sponsors in the program. During the year Operators were able to redeem codes from 140 brands and 2,874 SKUs –representing a compelling portfolio of potential reward points to drive engagement.
- Labels: BI shipped 96,691,594 labels to more than 150 manufacturing plants actively labeling in North America. That’s a 6% increase in cases labeled versus 2010.
- Redemptions: During the year, a record 20,370,658 cases were redeemed by 84,302 operators (think reach). That’s an average of 242 cases redeemed per operator (think engagement).
- New Enrollments – We also experienced a record number of 21,553 new enrollments in 2011, up 7% over 2010.
- Attached Operators: On average, Sponsors have over 35,000 unique operators “attached” to them through code redemption of products they’re labeling. In terms of unit reach this unique visibility creates an opportunity to manage and influence a “down the street” customer base as large as many chain accounts. For perspective, McDonald’s and Subway operate about 33,000* and 36,071* restaurants, respectively. (*Source: McDonald’s and Subway Corporate web sites on 1/30/12)
- Redemption Rate: From a Sponsor perspective the average redemption rate was 20%. That means Sponsors (on average) have visibility to 20% of the operators buying participating products as well as the opportunity to track, retain and grow them.
- Acquisition Analysis: The average Sponsor had an Acquisition Contribution (A/C) Score of 67%. This means that, on average, Sponsors paid for 67% of their total Foodservice Rewards investment with newly acquired customers*. (*New customer defined as an operator being a Foodservice Rewards member for at least 90 days and not redeeming a product code from that Sponsor during that period.)
- Promotions: Sponsors ran 146 promotions in 2011. The average promotion resulted in 9,219 incremental cases being redeemed by 1,220 Operators with a calculated ROI of 274%.
After 10 years, Foodservice Rewards continues to deliver…
2011 remained a difficult year for the foodservice industry. However, Foodservice Rewards continued to show increased operator enrollment numbers. Transitioning these operators to true “Foodservice Rewards” mavens with ongoing engagement has become more of a challenge (2012 gamification promotions will assist). One thing remains clear from our FSR_KPI_Reporting_Q4_2011, when an operator engages, they continue to increase purchases among the participating products and sponsors of Foodservice Rewards.
97.4% of reward codes are entered on-line at www.foodservicerewards.com
In case you’re wondering, operators enter reward codes in the following manner:
Key in on line = 83.3% of codes
Scan in on line = 14.1% of codes
Mail in = 2.6% of codes
…taken from all entries January 1, 2011 – May 31, 2011
Healthcare operator enters the one-hundred millionth reward code…
…and WINS 50,000 Bonus Points!
Congratulations to Rich Burlingame of Great River Health Systems, who entered the 100 Millionth Foodservice Rewards product code on Friday, June 9, 2011. Rich has been participating in Foodservice Rewards for just over 5 years.
Here is what Rich had to say about Foodservice Rewards and his big win!
“I really like it when I see product case come in with the bright yellow and black FSR label. I remove them, and make a pile of them by my computer. I admit that I let them accumulate for a while before I enter them. I see the stack, and tell myself I need to make some time to get it done….. I sure do not know what made me decide to make the time to enter my large stack of codes last week, but I am so thankful I did it. I smile when I think that during that “tedious” chore, I entered the One Hundred Millionth code!”
Rich Burlingame
Director of Foodservice
Great River Health System
West Burlington IA
Time to start the betting pool: When will the 100 millionth reward code be entered?
Here is a Foodservice Rewards® Sponsor Update for your review.
This update includes information about:
* A milestone celebration,
* The next Sponsor Meeting date,
* A cool new metric for you, and
* An update on our marketing efforts.
As always, please contact Aaron, Ashleigh, Marty, Tyler or me with questions, comments, and ideas. Thanks!
On 03.21.11, In Metrics, by John Neupauer
A new program measure shows that on average, 50% of the cost to sponsor Foodservice Rewards is funded by new customer acquisition…
Most of you are aware of an exciting new measure we’ve been working on for a few months – Acquisition Contribution. It really is exciting, as you’ll see. This measure looks at the financial impact newly acquired operators have on Sponsors.
We compare a Sponsor’s total program spend to the revenue (margin) generated by their new customers. We found (Coalition Average) that 50% of the cost to participate in FSR is funded by new customers. That’s right, half of the program cost is self-funded through the acquisition of new customers.
Here’s how it works:
This measure is based on spend and new customer redemptions for a 12 month period. We identify new customers redeeming during that period and record their case redemptions. Here’s the new part…”New” customers are defined as operators who have been enrolled in FSR for 90 or more days before redeeming from a Sponsor for the first time. It’s the 90-day gap between enrolling and entering product codes that’s the key. On average, new enrollees to FSR redeem product codes within the 1st 20 days after joining. If an operator was already buying a Sponsor’s product, the operator would likely have entered codes before 90 days. By using a 90-day window to define an operator as new, we’re taking a conservative and realistic measure of new business through FSR.
To get our AC Score, we compare a Sponsor’s total program spend for 12 months to the margin generated from new customer’s redemptions for 12 months.
Two things…
1) Please feel free to suggest a new name for this measure.
2) To provide a realistic measure, Sponsors must be in the program for more than 2 years.