In 2010, restaurant goers signficantly increased the amounts of food and drink they purchased when incentivized through gift cards, comp cards, and loyalty programs, according to a 2-year analysis of consumer promotions conducted at 50 New England restaurants.
The analysis, based on data collected by CaptureCode of Waltham, Mass., showed a 21 percent uptick in the amount of product upsell as a result of consumer promotions run in 2009 and 2010. Moreover, the CaptureCode analysis shows an astonishing 85 percent surge in loyalty program points issued in the year-over-year comparison.
Tony Padam, president of CaptureCode, attributes the findings to two inter-related factors: an improving U.S. economy and increasing consumer confidence. However, Padam cites a third factor – the increasing effectiveness of consumer promotions that are based on better buyer analytics being harnessed and applied by merchants.
According to CaptureCode, nearly $86,000 worth of gift cards were sold at the establishments studied in 2010, in comparison to approximately $60,000 worth sold in 2009. Notably, restaurants experienced an appreciable increase in additional product sold as a result of gift card promotions: $84,449 worth of gift cards sold generated an additional $22,969 in actual in-store sales – representing more than a 20 percent realization of product upsell.
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