Mobile App Code Redemption Now at 25%

Continued growth of Mobile App…

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.



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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Most Valuable Operators – Engaging Brokers to Drive Sales

MVO transactional data is now being transferred directly into broker’s CRM systems…

Foodservice Rewards helps manufacturer partners understand their down the street business.  Most Valuable Operators are the largest customers – the operators a sales team or broker should be visiting.   For the first time, Foodservice Rewards sponsors are now sharing MVO customers and their transactions directly into the sales agent’s own customer relationship management systems.   For the initial test, Foodservice Rewards partnered with Foodservice Enablers at the request of Basic American Foods to deposit the data into the Elite Associates Sales Portal.  King & Prince Seafood quickly saw the value and added their data to the program.  After working with the data for a few months, Phil Ledesma , Corporate Client Manager for Elite Associates, reported during the annual sponsor meeting that the data is helping them be more efficient by:

  1. Identifying declining operators to catch brand switching
  2. Identifying operators to cross-sell to
  3. Providing another tool to close the sale

With permission from sponsors, data will continue to be shared with sales agents through the Foodservice Enablers broker sales portal.  Foodservice Rewards is also working with Easy Operator/AFS Technologies and others to develop similar software providing MVO transactional data to sales agents across the foodservice industry.

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Senior Management Reporting “Pushed” Each Quarter

Sr Management Dashboards provide top-line sponsor data quarterly…

The Foodservice Rewards team has created a simple report that is delivered quarterly via email to our Sponsors Management.  The purpose of the report is to provide a quick view of “street” volume tracked using the Foodservice Rewards program.  This quarterly report includes Case Redemption by Product, Operator Redemption by Product, Case Redemption by Segment, Operator Redemption by Segment, Quarterly Comparison of Product Redemption and Top 20 Operators Redeeming that quarter.  Examples below:


Dashboards Simplify Foodservice Rewards Reporting

Foodservice Rewards Dashboards in Cognos Simplify Operator Data Delivery…

Sponsors use Foodservice Rewards to understand who their “street” operators are and what products they are purchasing.  This information is housed in a database and made available to our sponsors 24/7 using Cognos “eTelligence”.  Many sponsors choose to have their assigned Coalition Manager pull reports on their behalf.   

The Foodservice Rewards team created easy-to-use dashboards to help our sponsors navigate their top-line data.  Examples of the three dashboards are below:

Enrollment Dashboard – Includes Sponsor Operators by Segment, Sponsor Operators Compared to FSR Member Operators, Top Operators Redeeming from Sponsor, and New Operators attached to Sponsor by Month

eTelligence Enrollment Dashboard

Operator Mapping Dashboard – Includes Attached Operator Dispersion versus Total FSR Operator Dispersion

eTelligence Operator Mapping Dashboard

Redemption Dashboard – Includes # of Cases Redeemed through FSR by Quarter and # of Operators Redeeming by Quarter

eTelligence Redemption Dashboard


“Moneyball” and Foodservice

Leveraging customer data is a potential “game changer” for foodservice marketing.

Check out the movie “Moneyball” or better yet pick up a copy of the book.

When you see the movie or read the book consider the following:

  • Baseball in analogous to the Foodservice industry
  • Players are the Customers
  • Scouts are the Sales guys
  • Player selection is like customer selection.

The current system used to choose players or customers is inefficient. Buying “wins” with player selection is like buying “volume” with customer selection. The key to winning is to acquire players or customers more efficiently than the competition (and with limited resources).

This scene from the movie makes the point: “Moneyball” Trailer

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Make a List and Check it Twice!

Inefficient “Status Quo” of Coupons & Rebates is compared with Foodservice Rewards…

I’ve heard that it costs about $30 to verify a coupon/rebate, then process a check through the typical manufacturer accounting system.   Wow!  This prompted further thought about coupons and rebates as “status quo” tools manufacturers use to influence operators to purchase their products.   So we made a comparison list (and checked it twice)!  Foodservice Rewards is the most efficient and effective way for foodservice manufacturers to influence operator purchases at the “street”.    A little less “status quo” could help fund a lot more results! 



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