Red Lobster bets on a mobile app to get people out to eat
Red Lobster is rolling out its first app in a bid to develop direct relationships with diners.
The My Red Lobster Rewards app lures loyal customers with free food once they earn points by dining in at one of the chain’s 677 restaurants. The app, free to download for iOS and Android, is a bid to get people to go out to eat out at Red Lobster restaurants. Members will only get rewarded by visiting Red Lobsters and scanning QR codes found on their restaurant receipts. Every dollar spent at a Red Lobster is a point tallied in the app. They can then redeem points for free menu items like chocolate lava cake or a bowl of clam chowder.
Chains like Buffalo Wild Wings and Chick-fil-A have introduced their own loyalty apps recently. However, the average person doesn’t collect a large amount of apps on their smartphones. App Annie’s 2017 report on app usage found that a person will use 30 apps a month and open 9 every day, but included in the 30 are pre-installed apps such as Safari. The majority of the rest are social media apps.
“The opportunity to engage with [customers] with an app is a huge opportunity,” said Salli Setta, president of Red Lobster Seafood Company. “It really starts to fit in with what they’re looking for with their lifestyle.”
Setta said the brand has seen success in tests this year in Colorado, Arizona and Wyoming. Setta said the brand found that more than 75 percent of the people who downloaded the app used it to scan a receipt, and 25 percent have redeemed points two or more times. “That is very high for this kind of loyalty program,” she said.
The app is also an opportunity to gather data. Setta said the brand’s goal is to customize what people see in the app based off of information the brand learns. For instance, Red Lobster can customize the rewards for each user based off of past purchase history. In order to become a member, people have to enter their email address, phone number and ZIP code. Red Lobster will then use this information to send members news and offers through email.
The restaurant chain is applying other mobile tactics to engage customers. This month, the brand began using SMS to target potential customers. The restaurant is also experimenting with delivery. For now, it is partnering with Grubhub to serve customers in specific cities including New York. The brand would not say whether it plans on bringing delivery options to its own app but, beginning in January, customers will be able to place an order to go through the app.
TikTok’s uncertain future: the issues marketers should (and shouldn’t) fret over
A TikTok ban would require U.S. lawmakers to prove that the short-form video app is a genuine national security risk. So far, that hasn’t happened.
Maybe Web3 isn’t as dead as it would seem, as agencies play with new data-generating models
Agencies are continuing to invest in Web3 technologies in new ways, from client activations to data management.
Why real estate company Windermere is adding influencers to its marketing mix and spending half of its ad budget on them
Windermere is working with Seattle-based agency PB& as well as the home-focused publication Domino to partner with influencers like design influencer Max Humphrey.
SponsoredHow critical data pillars will increase brands’ confidence in CTV
Mario Diez, CEO, Peer39 With every quarter, the balance of TV viewership slips away from the traditional linear model and more towards connected TV. Less than half of the adults in the U.S. subscribe to cable or satellite, and fewer than half of the households watched linear TV daily in the second half of 2022. […]
Digiday+ Research: Agencies’ attitudes on secondary social platforms have seen ups and downs (especially on Twitter)
Digiday+ Research surveyed over 100 agency professionals, and found that agency clients' approach to the channels categorized as "other social platforms" has been somewhat erratic over the last year.
Why DOOH is a big draw for startups and direct response marketers
As digital ad channels, like social and paid search, become saturated and data privacy gets more restricted, startups and small businesses turn to DOOH to boost brand awareness.