Update – How Operators Enter Reward Codes

While most operators still type in 12-digit Foodservice Rewards codes manually, the number continues to decrease in favor of faster options…

At the end of 2012, operators had five ways to enter codes.  Below are the percentage of codes entered using each method:

  • Type Online = 72%
  • Scan Online = 16%
  • Scan Using Mobile App = 9%
  • Mail In = 2%
  • Type Using Mobile App = 1%

The mobile App launched in January 2012, so we expect the number of operators using this feature to continue to grow.  While typing online is still the dominant method, other online code entry options are growing compared to what was reported for 2011.

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2012 Foodservice Rewards Recap

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

 

 

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Are Customers Leaking Out of your Sales Bucket?

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!

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90-day Rule determines – REAL NEW Business

90-day rule eliminates any “new members” from “new buyer” count…

Foodservice Rewards has over 120,000 active operators members in North America.   These operators LOVE earning points from the program and collect the bright yellow “reward stickers” from all the participating brands they purchase.

For new sponsors, we use a minimum of six months to ramp-up to a baseline of redemptions before considering promotions to drive “new business” since it takes some time for labeled product to work its way through the supply chain.

For new operator members, we use the “90-day rule”.   We know that 95% of new Foodservice Rewards enrollees enter their reward codes within the first month.  So, if a new member was already purchasing a sponsor’s product, then we know with a high degree of certainty that the reward code will be entered within the first 90-days.   When running “new buyer” promotions, the Foodservice Rewards team usually removes new enrollees that redeem within the first 90-days of their membership.   Relatively new members that redeem reward codes beyond the initial 90-day period are considered new buyers to sponsors they redeem from.

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2011 in Review

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%.
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2011 Foodservice Rewards Operator Metrics

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.

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2010 in Review

The Year in Review shows that Foodservice Rewards continues to deliver results in spite of the tough economic environment that hit commercial “street” restaurants particularly hard…

According to NPD’s Fall 2010 ReCount®, the number of independent restaurants declined by 5,460 units (or two percent) last year.  In spite of those numbers – or perhaps because of the resulting margin squeeze – operators joined Foodservice Rewards in record numbers. 

  • Enrollment – 21,361 new operators enrolled in Foodservice Rewards last year.  This is a 17% increase from the past two years where enrollments hovered around 18,000.  Our new Enrollment Specialists contributed to the growth completing 16,978 calls and enrolling 1,928 new operators.
  • Redemptions – 81,458 operators redeemed 18,838,629 cases last year.  That’s an 8% increase in redeeming operators and cases.
  • Labels – 98,586,177 or 13% more labels were shipped to 259 plants in North America in 2010 than in 2009.
  • Promotions – 149 promotions were run in 2010, a decrease from 167 in 2009.  This was the first decrease we have seen and was driven by tighter sponsor budgets.  Promotion results improved to an average ROI of 256% or 11,729 incremental cases redeemed by 1,264 operators.

The 4th quarter KPI’s provide additional insight and are a positive measure of Foodservice Rewards continued value to our industry partners.

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Q3 2010 KPI’s

Q3, 2010 KPI’s reveal a continued growth in the quality of newly acquired operators…

Here are the quarterly KPI’s for April/May/June of 2010.

While the pace of Operator Acquisition has slowed, Acquisition Quality is at record highs, and operators continue to redeem a greater number of products from more Sponsors. As it has in past quarters, retention remains on our watch list and win-backs remain steady.

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2009 in Review

The year in review statistics and 4th quarter KPI’s continue to show growth despite a tough economic environment…

Sponsors, Operators, and Foodservice Rewards staff worked well together last year and the resulting 2009 4th Quarter KPI’s are holding steady despite a tough economic environment.

  • Labels: BI shipped 86,819,377 labels to 237 manufacturers’ plants in North America.
  • Redemptions: 75,523 operators redeemed 17,373,324 cases – that’s a 5% increase in cases and a 6% increase in operators over 2008 – and just shy of 50,000 codes per day.
  • Promotions: Sponsors ran 167 promotions – a 55% increase over last year. ALL Sponsors ran at least one promotion during the year – a first perfect season – and the average promotion resulted in 8,436 incremental cases being redeemed by 1,116 operators with an ROI of 167%.
  • Customer Service : Our customer care team handled 14,809 calls and emails.
  • Special Requests: The Operations Team ran 496 special reports. This number does not include the hundreds of reports provided by your Coalition Managers.
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    Q4, 2008 KPI’s

    The Q4, 2008 KPI’s reflect the economy’s broader malaise, albeit with some bright spots

    Included with this update are the latest quarterly metrics through December 31, 2008. Some highlights:

  • Enrollments are rebounding.
  • Activity 30 days after enrollment remains high.
  • Operators continue to redeem more product from more Sponsors.
  • Retention continues to be an issue.
  • Re-engagement remains steady.
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